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Year end collection push

I am heartened by the many Collections projects we were involved with last year. These projects will have made a major difference to these firms final collection numbers and more importantly the effort required to collect these amounts.

Law Firms Press to Get Bills Paid by Year-End
http://online.wsj.com/news/articles/SB10001424052702304773104579270470475326780

The critical number in here was the drop in total recovery rates have dipped from 90% in 2007 down to 83.5% in 2013.  

There are some simple measures to improve your Collections which firms can implement :-

1) Review payment terms. Consider 7 and 14 day accounts.
2) Look at your payment options do you make electronic payment easy?
3) Do you deliver bills electronically as PDF? They are faster and match the expectation of clients for quality and authorization.
4) Have you reviewed your client payment requirements? Some bill consolidation services are too expensive in the long run. Negotiate accordingly or leave these clients to your competitors.
5) Do you have File Opening procedures to ensure bad payors do not get through, and once identified are locked out?

Dave Callahan from Select*Associates commented that " This 6.5% dip represents the thin margin between profitability and uncertainty for many Law Firms. "

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I believe that as a profession it is no longer possible to ignore paperless processing. The time has come to embrace the challenges and implement features like electronic payments WITH the requisite controls.

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