Improve Cash Flow: A leading regional law firm
ISSUE
The client sought to improve cash flow generated by the firm. The goal was to reduce work-in-progress, speed up accounts receivable collection, minimize unbilled disbursements and maximize 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