- No set debt collection procedures in place.
- 80% of clients paying out of terms.
- Partners and staff not comfortable talking to clients on the phone about unpaid accounts.
- Although knowledgeable about their own client’s accounts, Partners not fully aware of what was happening with the other Partner's accounts.
Results – One Year Later
- More Money In The Bank – Total Aged Trial Balance is down by 13% ($262,000) – even though Monthly Billings have increased when compared to the same time the previous year.
- Less Exposure – 'Old' debt (60day and 90day+ debts) is down by 36% ($466,000) when compared to the same time the previous year.
- Time Saved – Partners are now able to spend more time and focus on fee-generating activities rather than worrying about unpaid accounts.
- Clients Paying Sooner - Systematic follow up has meant that clients have gradually become “educated” to pay the firm's fees in a more timely manner.
- More Control – Partners now more accountable to each other for their own division's performance (highlighted in the Monthly Debtors Report and discussed in Partners Meetings).
- Fewer Bad Debts And Fee Reductions - as any queries or disputes are identified and attended to more promptly.