publication of the International Legal Technology Association
Issue link: https://epubs.iltanet.org/i/231030
TOP 10 YEAR-END COLLECTION TIPS FOR FIRMS BIG AND SMALL 1. PLAN FAR ENOUGH AHEAD OF THE ACTUAL ONSET OF YOUR PUSH. Be sure to look at the calendar and understand the working time that is available. Start to evaluate a month or two before the actual start of the push. Consider not only your firm's schedule, but also that of your clients. In many cases, there might be various conflicts that could affect your ability to maximize collections. Holidays and shut down periods are just a couple of the most common conflicts. If you are not reviewing significant client balances, larger transactional matters, clients on payment plans or contingent fee matters regularly, you should take some time to become familiar with them and their statuses. Are there short-pays, small residual balances that are insignificant or negotiated balances included in the inventory that could or should be written off? If it is not obvious after reviewing those items, it might be wise to run a report and see if there is a reason to keep them open or just clear them out. Overall, understand the dynamics of your inventory, work in progress and A/R. How healthy are they? Is there value there, and do you anticipate they will be collected? Unbilled time that has no prospect of ever being billed should be written off. Longstanding balances with little to no hope of being collected by year-end should be written off or referred to collections. Unapplied credits should be applied toward balances where possible. In essence, you are conducting a clean up. A significant component of your plan is to ensure timekeepers have their time entered, posted and up to date before the push commences. If time is missing for a client matter, this could result in a delay in billing. If billing is delayed, collections may be as well. The key is to maximize billings — particularly in the months immediately prior to the push — in order to optimize collections. 2. ESTABLISH A GOAL ALONG WITH AN ORGANIZED AND CLEAR SCHEDULE. This is a multifaceted step. It takes good communication skills and a good structure to manage. Look at the resources you have available and set thresholds along with a plan for each area. Consider what inventory is available and establish reasonably attainable goals based on health, historical results and current year trends. Goals can be set at the firm, practice, regional and personal levels. Consider a tangible way to measure and report easily on progress or lack thereof. Set hard deadlines for things like time entry, costs entry, billing and collection points for review along the way. Make and publish a schedule that is easily accessible and depicts when each task is due. This should be communicated to each person who has a responsibility. It might look different for an attorney vs. professional staff, but the information should define a task, a due date and contact points should extraordinary situations arise. Once established, communicated and underway, be sure to send reminders at reasonable intervals.