If cash flow isn’t the key to business success, lack of cash flow is the reason that many businesses fail. These businesses neglect to set aside enough cash for the capital infusions they need. Or, they neglect to set aside the reserves needed to pay their overhead, and keep things running smoothly until the next round of receivables is deposited.
In law firms, this problem can be particularly poignant. The emphasis in a law firm isn’t typically on cash: it’s on billing. Yet, as we like to say here at Easysoft: money is money. Cash flow encompasses both billables (retainers, hourly fees) and non-billables (fixed overhead, expenses) – and it’s impossible to track or quantify without the proper legal billing software and other systems in place.
Moreover, if you’re a solo practitioner or managing partner of your law firm, and don’t have the proper attorney billing software in place to a) collect adequate retainers, b) invoice clients in a timely way, c) track your expenses, d) collect your expenses, e) accept payments, f) charge interest for late payments, and g) conduct other activities related to maintaining an adequate cash reserve, then not only does your cash flow suffer: so do you.
We’re guessing, but we bet you’re experiencing a low-level worry that gnaws – however subtly – in your mind.
If you can take that worry out of the picture, why wouldn’t you?
You’d spend the time gaining more clients and enhancing your profitability.
You can streamline your operations, ramp up your collection process, and enhance your profitability.
In this series of posts, we will focus on the critical tracking, billing, and collection issues which affect law firm success rates.
If you want to get a jump on this information, call Easysoft at 800-905-7638, and talk to a representative about your law firm cash flow management today.