Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
Working Capital Issues for the Law Firm
Part One of a Two-Part Series
Working capital is about cash flow and the cash needs of your law firm. Simply put, it is the cash gap between when your firm pays for something and when the firm receives payment from the client. Ideally, a firm would receive client payment before incurring the costs, creating a negative cash gap situation. At one time Amazon.com worked on a negative cash gap process ' Amazon.com was paid by the consumer, by way of a credit card charge, before it had to pay its vendors for the purchased product and shipping. The law firm equivalent of a negative cash gap is retainers. 'Retail' law firms could also exploit the credit card mechanism exploited by Amazon.com.
Typically, the cash gap for law firm payables and receivables runs about 105 days. Unbilled time turns over in 60-70 days. Accounts receivable turn over in 60-80 days. Accounts payable generally run on a 30-day cycle. With labor costs being the single largest overhead item for law firms (usually paid bi-weekly or semi-monthly), the financial burden is aggravated because labor's cash gap is closer to 120 days on average.
This premium content is locked for Entertainment Law & Finance subscribers only
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN ENTERTAINMENT LAW.
- Stay current on the latest information, rulings, regulations, and trends
- Includes practical, must-have information on copyrights, royalties, AI, and more
- Tap into expert guidance from top entertainment lawyers and experts
Already a have an account? Sign In Now Log In Now
For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
Legal Possession: What Does It Mean?
Possession of real property is a matter of physical fact. Having the right or legal entitlement to possession is not "possession," possession is "the fact of having or holding property in one's power." That power means having physical dominion and control over the property.
The Anti-Assignment Override Provisions
UCC Sections 9406(d) and 9408(a) are one of the most powerful, yet least understood, sections of the Uniform Commercial Code. On their face, they appear to override anti-assignment provisions in agreements that would limit the grant of a security interest. But do these sections really work?