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Billing and Collections Optimization

Since 2008, it has become progressively more difficult to maintain law firm profitability. The primary reasons are client driven - resistance to billing rate increases, reluctance to pay for junior lawyers’ time, and an overall focus on reducing their legal costs through discounting. All of these factors reduce a firm’s realization rates.

The overriding challenge for law firms is to manage their businesses professionally. In this new world, every lawyer needs to be an entrepreneur. Legal administrators must be professional financial managers. And most importantly, law firms must streamline their financial procedures to improve efficiency and also reduce their internal processing costs. Since it is very difficult to raise rates, firms must review all processes - from the way lawyers work to the way bills are produced and collected – and find ways to improve productivity and reduce their production costs without affecting quality.

Upstream Consulting Group will help you institute financial best practices which will dramatically improve your billing and collections process. We will analyze your current workflows and procedures, suggesting clear and achievable changes, such as:

  • Controlling and reducing discounting whether as a result of client demands or initiated by the partner.
  • Creating customized step-by-step workflows to get invoices to clients as quickly as possible.
  • Introducing improved time entry procedures which will capture more billable time.
  • Eliminating stale and inconsistent/duplicative rates.
  • Reducing manual work in the B&C process.
  • Setting monthly billing and collections targets to limit the aging of receivables and to improve cash flow.
  • Transferring much of the collections responsibility from partners to a well-trained collections staff.

If you would like to optimize your billing and collections process, then please contact me to discuss your firm’s needs and how we can assist you in achieving your financial goals.