Attorneys are put in a difficult spot when it comes to collections. It is critical that the clients you represent maintain a great relationship in order to give the best legal counsel, however, having to call and ask them to pay on their delinquent invoices doesn’t always help that relationship. Plus, how often do you truly have time to call every client that hasn’t paid? As a result, you’re usually waiting on payment from a few clients, missing out on the cash flow you need. Using law firm collections software can help manage your time by automating most of the process and prioritizing your calls.
Law firms don’t have the best track record when it comes to accounts receivables. On average, law firms are waiting 76 days to collect on their invoices. A typical small law office can see their total uncollected accounts receivables equaling 40 percent of their billed charges. That’s money that the law firm has earned, but was never paid for.