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Billing Scrutiny Creates Tension
Legal bill scrutiny in its many forms ' internally by legal departments, by nonlawyer staff elsewhere in the company, by third-party auditors, or via e-billing software ' has the potential to affect how and when law firms get paid, but the practical effect is up for debate.
Clients certainly appear to be in the driver's seat: With legal departments slashing spending in recent years, and demand for services taking a hit, most firms are vying for their piece of a smaller pie, so the conventional wisdom goes. Firm managers, for their part, routinely point to rate pressure as a reason for revenue declines and other headaches.
Whether all these factors have adversely affected law firm billing cycles and collection isn't entirely clear, but the underlying tension is evident.
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