Challenges in Law Firm Collections

Many law firms are currently facing significant challenges with their accounts receivable (AR) processes, marked by an increase in AR cycles and overall amounts owed. Over the past two years, AR cycles have lengthened by more than 5% annually, leading firms to hire additional staff in their finance departments as a primary response. However, this solution may not be sufficient, as the real need lies in improving the existing tools and processes used by staff to enhance efficiency. Focusing on better workflows can reduce manual steps and accelerate cash flow, ultimately alleviating the burden of collections during peak seasons.