Don't Leave Receivables in Limbo


Collecting Receivables

The financial lifeblood of any law firm is receivables - the bills that firms send out to and collect from clients for work done. In addition to the traditional challenge of collecting receivables, two new dimensions have been added by ongoing trends spawned in the Great Recession: partner de equitization, and law firm bankruptcies.

Partner De-Equitization

Before a partner is de-equitized or otherwise terminated, the firm should understand what that partner's amounts are in receivable, and know how much they depend on the partner to bring in the receivables. Ensure that there are incentives for the partner to collect the receivable before he or she leaves and finds a home elsewhere. Addressing this issue should cover:

  • Make certain that time sheets are current.
  • Send billings to clients immediately even if the totals are off or need adjustments later.
  • Monitor payment history of the partner's client and exert special effort on the partner to ensure that final invoices are sent out.
  • Ensure that clients pushed for payment cannot claim negligence by the departing lawyer.
  • Communicate with the client if payment is not received promptly.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Ed Poll, LawBiz | Attorney Advertising

Written by:


LawBiz on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.