Bailout: Are Accounts Receivable Sinking Your Profitability?
Lots of small and solo law firms have staggering amounts of accounts receivable; and, even if those numbers are not sky high , for you – smaller amounts are still vexing . Accounts receivable end up counting against your profitability, because these reduce the amount of gross revenue you collect = the top line for your profit margin . So, the more you collect : the more you make. But, what if you have existing accounts receivable ? Do you just write them off, entirely ? Now, while it rarely makes sense to sue your clients for unpaid legal bills – there are a whole host of things you can do short of that, which may help you to recoup (at least, some) of your billing . And, as with most things related to business management, it starts with a process – that you likely don’t have now . So, the very first thing you can do is followup ...