Improving the Law Firm AR Cycle
Record of days sales outstanding (DSO) is one of the key performance indicators (KPIs) for determining law firm liquidity. Reporting of DSO rates for a firm’s sales cycle assists in determining the timeframe until outstanding client accounts are paid. By dividing the total of accounts receivables for a period by the total net credit sales, multiplied by the DSO, a firm can estimate its cash conversion cycle rate signaling AR billing performance.
Why KPIs Boost Liquidity
With metric KPIs, a law firm has the insights it needs to improve collections efficiency, thus enhancing liquidity. Credit sales conversion rates and other transactions signaling a high DSO rate are a risk to finance that could otherwise be used for covering the operational expenses. Conversely, a firm can boost overall AR performance by decreasing DSO-related billing cycle risk. Capture your firm’s DSO to build a better financial model for the future.
Cash Flow Solution
Decrease billing cycle time to payment with direct API integration. Our application supports CLIO Lawpay and Xero GoCardless (ACH) transactions. Experience firmTRAK’s robust reporting KPIs and turn insights about firm billing cycle productivity into profit. Find out how to catalyze firm AR reporting performance with firmTRAK metric KPIs and reporting tools. Visit: https://www.firmtrak.com/