Dialing For Dollars – Tips For Collecting From Your Clients
Regardless of whether economic times are good or bad cash flow is always a matter of prime concern for law firms. With it taking in general 3-4 months to convert client work to cash anything the firm can do to speed up the collection cycle is always desirable. Here are a few ideas:
- Do everything you can to keep receivables from going out to 90 days. Receivables aged one month are 93.2% collectable; three or more months are 72.3% collectable, and one year or more are 28.4% collectable.
- Call – don’t waste time with mailing follow-up letters.
- Treat collection calls as an extension of client service. Calls should be treated as client service calls – not collection calls.
- Caller should be someone other than the attorney who did the work for the client, qualified staff member or outsourced Accounts Receivable Account Manager.
- Calls should be made by a trained Accounts Receivable Account Manager with client-friendly people skills.
- Calls should be made on each account as soon as it reaches the due date.
- Accept credit cards and offer it as a payment option.
- Discount bills when necessary if it will expediate payment and engineer payment plans.
- Diary, calendar, and follow-up.
- Consider outsourcing to an Accounts Receivable Account Manager – not a collection firm.
Consider our firm for outsourcing this effort.