It’s no secret that lawyers can be pretty bad with money management, and there are many reasons why.
“Let’s go back to the very beginning,” says Joyce Brafford of Profitsolv. “We know that law schools are very good at taking people’s money. But what about when the lawyers have to take people’s money?”
In a recent episode of the Non-Eventcast, Joyce and her colleague Scott Clasen discussed all things cash flow with host Jared Correia.
Here are three ways the panelists have witnessed miraculous financial wins at small law firms.
Overcoming Intertia
For some firms, creating a cash flow miracle can be as simple as following up and having the awkward interaction with clients who are in arrears.
Automated systems will help with this process. As Jared notes, the returns can be well into the six-figures.
Embracing the Pre-Auth …
Of course, the better solution is to prevent clients from going into arrears in the first place.
Enter the engagement agreement, complete with a pre-authorization and payments timetable.
As Scott notes, the cash flow benefits from this type of arrangement go beyond simply collecting what you’re owed.
… And Accepting the Processing Fee
Another big blocker to a pre-authorization agreement? The 3% processing fee.
Here, Joyce explains why the fee is worth it — and why this is not a difficult decision.
Ready for a 2025 miracle at your firm? Listen to the full discussion here.
The post 3 Ways Your Firm Can Conjure A Cash Flow Miracle appeared first on Above the Law.
3 Ways Your Firm Can Conjure A Cash Flow Miracle – Above the Law
It’s no secret that lawyers can be pretty bad with money management, and there are many reasons why.
“Let’s go back to the very beginning,” says Joyce Brafford of Profitsolv. “We know that law schools are very good at taking people’s money. But what about when the lawyers have to take people’s money?”
In a recent episode of the Non-Eventcast, Joyce and her colleague Scott Clasen discussed all things cash flow with host Jared Correia.
Here are three ways the panelists have witnessed miraculous financial wins at small law firms.
Overcoming Intertia
For some firms, creating a cash flow miracle can be as simple as following up and having the awkward interaction with clients who are in arrears.
Automated systems will help with this process. As Jared notes, the returns can be well into the six-figures.
Embracing the Pre-Auth …
Of course, the better solution is to prevent clients from going into arrears in the first place.
Enter the engagement agreement, complete with a pre-authorization and payments timetable.
As Scott notes, the cash flow benefits from this type of arrangement go beyond simply collecting what you’re owed.
… And Accepting the Processing Fee
Another big blocker to a pre-authorization agreement? The 3% processing fee.
Here, Joyce explains why the fee is worth it — and why this is not a difficult decision.
Ready for a 2025 miracle at your firm? Listen to the full discussion here.
