How Law Firms Are Controlling Accounts Receivables Quality

How Law Firms Are Controlling Accounts Receivables Quality: Old vs. New Client Accounts

The quality of law firm accounts receivable (AR) is made possible by way of key performance indicators (KPIs) reporting records of old and new accounts, as well as payment activity, billing collections, and client communications. Metric KPIs permit a firm to evaluate clients who have partial payments, and scale accounts for the determination of which accounts to pursue collections. An example is a large account with a 50% paid invoice not sent to collections, versus a collection notice of an account in nonpayment status despite an overall smaller balance.

Old vs New Client Accounts

The benefit of aging report KPIs is the age and percentage paid on invoices are viewed for smarter evaluation of collection. KPIs provide firms with insight into outstanding billing and payment trends. Performance analysis of law firm AR account data in aging reports indicates client account age, and percentage of payment to the standard term: 0-30 days, 31-60 days, 61-90, 91-120, and 120+ days due. KPIs also offer a second level of evaluation indicating client payment, and outstanding owed across multiple invoices or accounts.

firmTRAK is a Collection of Solution

If outstanding accounts are a serious obstacle to firm operational liquidity, the firmTRAK dashboard of KPIs offers the tool to get AR billing back on track. Track billed time for AR quality assurance with KPIs.

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