Improve Cash Flow: A leading regional law firm

ISSUE

The client aimed to strengthen cash flow by reducing work-in-progress, accelerating accounts receivable collections, minimizing unbilled disbursements, and maximizing billable hours.

RESULT

• Analyzed sources of WIP, AR and unbilled expenses and their cost to prioritize improvement opportunities
• Improved performance metric reporting to improve oversight, highlight issues, and increase accountability in each area
• Developed new policies to increase speed of billing, reduce WIP and track unbilled expenses
• Implemented alternative 3rd party financing alternatives for key clients that  reduced AR and WIP and immediately improved cash flow
• Approximately 25% improvement in cash flow due to client-financed family law, better tracking of overdue payments, new policies and regular oversight and management.
• Project return was about 3:1

IMPACT

Improve cash flow by 25% by changing billing policies and training to reducing WIP and Accounts Receivable. Developed dashboard and feedback loops to make the changes permanent.