Law Firm Accounts Receivable: journey towards 0

Could your outstanding AR be holding your company back?\

Managing a law firm’s accounts receivable can be overwhelming. As a law firm, providing your existing customers with optimal expertise in your area of legal practice and increasing your clientele should be on top of your agenda. And yet, are they indeed? There comes the one question you should ask yourself: is your team’s energy solely dedicated to achieving those highly demanding goals? Let’s be honest: instead, do they not find themselves running after late-paying clients too often? Are they manually chasing them with repetitive reminders to clear outstanding bills? If you answered yes to one of these questions, know that we have a bespoke solution for you.

Like many lawyers, the mere idea of chasing up unpaid fees might make you uncomfortable. We get you: working within a law firm should mean practising law, not dealing with cash management daily. But even though cash management isn’t the essence of a law firm, it is crucial to your company’s health. Having a successful and sound law firm means getting paid quickly and keeping a healthy cash flow.

In August 2021, BigHand launched a survey investigating law firm cash flow trends in the UK and North America after the pandemic. In the UK, 48%  of the investigated firms confirmed aged debt had the biggest impact on their cash flow.

Taking the weight off your shoulders

At Kolleno, we know how the collection of unpaid fees can cripple not only the finances of your company but also your team’s workflow and performances. We also know how debt collection for late payments is time-consuming, repetitive, and subject to human mistakes. Unfortunately, it is an ordinary reality for all sizes of law firms. Larger firms can afford a dedicated debt collection service, but how productive is it?

With 90% of successful recovery and five times faster collection, Kolleno’s all-encompassing solution can help you :

– prioritise your cash flow’s health,

– reduce the length of your money cycle

– achieve a higher recovery rate.

We empower and support you to invest your team’s time and means in what truly matters. We help you dedicate yourselves fully to your clients and maintain a healthy relationship with all of them. Leave the cumbersome task of debt collection to us from beginning to end.

According to Deloitte, in the world post-pandemic, a technology-powered strategy to automate low-value activities while improving transparency and auditability is key to a successful collection.

Valuing your time and your clients: Kolleno’s core mission

Kolleno does not only provide you with a solution to automate invoicing and debt collection to improve your credit control. We also make sure to secure and strengthen your relationship with your late-paying customers throughout the delicate collection process. Using Artificial Intelligence and Machine learning, Kolleno gets to know your clients and adjusts to each of them. From estimating the best timing to send reminders to find the most appropriate form of communication and the perfect tone of voice, Kolleno meets and anticipates your daily needs.

The effectiveness of following-up processes merely depends on personalisation. Late payments originate from many causes. They can result from financial difficulty, disputes, or simply negligence. Therefore, it is essential to maintain healthy and trustful relationships with your clients to avoid any misunderstandings. By clearing time on your team’s schedule to shift your focus towards your legal work, we help you keep your whole clientele satisfied.

What Ancient Greeks can teach us about debt collection

In Ancient Greece, politicians highly believed in the notion of “kairos”, translated as the “right time” or “opportune moment” to do or say something. When it comes to paying fees, we believe that time is also of the essence. Clients pay your bills faster if they receive them soon after enjoying your services. Therefore, we implemented a solution to automate final invoices and seamlessly send them as soon as the deal shows up in the books, at the appropriate time when clients still appreciate their service.

However, betting on “the right time” is not enough to decrease your accounts receivable. Picture your customer at his office: she has just received a friendly reminder, and she’s happy to pay right here, right now, so that she won’t have to think about it later. What will happen to that same customer if your payment process isn’t flexible, straightforward, and uncomplicated? She will lose the momentum and procrastinate to avoid such a chore.

Say no to outdated methods and discouraging customers! The convenience of the payment processes proves to be a determining factor in decreasing your AR. Kolleno enhances your client experience by giving customers access to a straightforward payment portal to allow instant funds transfers through Stripe, Direct Debit, ACH, or EE transfer. We also propose a wide range of tailored payment plans and options to adjust to your customers’ needs. Our strategy matches Deloitte’s guidelines for decreasing AR. From automation to reduce time and human error to timely invoice generation and reporting and electronic billing systems, and an easy payment platform, we tick all the boxes for you.

Providing a professional experience for your clients

An analysis published in June 2018 by professional services company Smith & Williamson investigated the books of 50 top firms. It revealed two alarming points: first, it takes over four months for law firms to receive their rightfully-due money. Secondly, an amount of nearly £2bn in unbilled work. Moreover, with Covid, these numbers increased, jeopardising the future of many companies. The conclusion of this study is adamant: investing in technology to reduce the administrative burden of debt collection is the only way to a healthy cash flow and optimal productivity.

Don’t let outstanding AR prevent you from offering outstanding legal services! With the pressure of collecting money off their plate, allow your team to improve their working efficiency and focus on creative tasks. Rely on Kolleno’s streamlined processes to offer your staff and clients a technology-driven and smooth experience.

Drastically shorten your collection time and unleash your firm’s potential. Embark on a journey towards 0 accounts receivable with Kolleno.