Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Accounting and Financial Planning for Law FirmsFeaturesLaw Firm FinancialsLaw Firm Management

Unbiased Thinking: A Blueprint for Your Law Firm Billing & Collections Transformation

By Dan Safran
May 01, 2024

In our experience, we find that law firms generally experience a similar set of common challenges and costs tied to inefficient billing and collections practices. These can be quite significant — at some firms, we have seen profitability drag exceeding 6%.

This is a cost no firm can afford; and to that end, the following offers a blueprint for transforming billing and collections consisting of four "Invoice to Cash" opportunity areas:

|
  1. Resource management and efficiency;
  2. Process consistency and accountability;
  3. Financial control and reporting; and,
  4. Technology tools, integrations, and automation.
|

Resource Management and Efficiency

Resource management and efficiency issues all relate to how firms allocate, coordinate and manage staff responsible for billing and collections. Problems and challenges that arise often include poor firm-wide recovery rates, resource-level issues where realization achieved by specific individuals is too low compared to firm benchmarks, or there is a skill or experience gap.

These issues spill over to other problems like over-resourcing and excessive compensation. Over-resourcing is very common. We often see situations in which headcount far exceeds typical industry practices, resulting in overspending. At one client law firm, we observed an astonishing 4X staff overage ratio, compared to comparable environments.

This premium content is locked for Entertainment Law & Finance subscribers only

  • 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

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
How Secure Is the AI System Your Law Firm Is Using? Image

What Law Firms Need to Know Before Trusting AI Systems with Confidential Information In a profession where confidentiality is paramount, failing to address AI security concerns could have disastrous consequences. It is vital that law firms and those in related industries ask the right questions about AI security to protect their clients and their reputation.

COVID-19 and Lease Negotiations: Early Termination Provisions Image

During the COVID-19 pandemic, some tenants were able to negotiate termination agreements with their landlords. But even though a landlord may agree to terminate a lease to regain control of a defaulting tenant's space without costly and lengthy litigation, typically a defaulting tenant that otherwise has no contractual right to terminate its lease will be in a much weaker bargaining position with respect to the conditions for termination.

Pleading Importation: ITC Decisions Highlight Need for Adequate Evidentiary Support Image

The International Trade Commission is empowered to block the importation into the United States of products that infringe U.S. intellectual property rights, In the past, the ITC generally instituted investigations without questioning the importation allegations in the complaint, however in several recent cases, the ITC declined to institute an investigation as to certain proposed respondents due to inadequate pleading of importation.

Authentic Communications Today Increase Success for Value-Driven Clients Image

As the relationship between in-house and outside counsel continues to evolve, lawyers must continue to foster a client-first mindset, offer business-focused solutions, and embrace technology that helps deliver work faster and more efficiently.

The Power of Your Inner Circle: Turning Friends and Social Contacts Into Business Allies Image

Practical strategies to explore doing business with friends and social contacts in a way that respects relationships and maximizes opportunities.