cash flow law firm legl

The Keys to Managing Your Firm’s Cash Flow

Legl
Legl

Cash isn’t king. But your cash flow is.

Although cash flow is consistently raised as a key priority for law firms, a worrying number of them still struggle to maintain a healthy level of cash in their business.

You don’t need to look hard to find out why. Inconvenient payment methods and inefficient billing processes result in an unnecessarily long lock-up period (the time it takes to convert “work-in-progress”) and long average invoice payment times (often 6 weeks or more). In other words, law firms take too long to bill for their work, don’t receive invoice payments quickly, and have less control over their incoming funds as a result.

The longer it takes to get paid, the more dramatic the negative impact on your firm’s cash flow could be. The longer the delays in receiving payment and having cash in the bank, the longer it takes you to reinvest that cash on new hires, new tech, marketing material/business development or other areas of business growth. Improving your cash flow is therefore essential to growth.

The state of law firms in 2022

cash flow stats 2022

So, how do you improve your cash flow?
  • Use digital payment methods to make it quick, simple and easy for clients to pay
  • Allow for partial payments and bill for work regularly rather than in one lump sum
  • Enable tighter credit control and chase bills earlier and more effectively
  • Improve forecasting and visibility over payments, either through new hires or new tech
  • Harness data to understand friction, gaps in processes, and opportunities for process improvement
How Legl can help improve your firm’s cash flow

Legl is the leading, award-winning provider of an online payments solution built specifically for legal services. Using Legl’s payments tool you can get paid faster, receive payments securely and reduce administrative time, all while giving your clients a better experience and more flexibility. You can find out more by visiting Legl.com/pay today.


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