Family Lawyer Magazine’s Dan Couvrette interviewed Scott Clasen from TimeSolv to learn why some family law firms have low collection rates when it comes to their client invoices and how they can achieve 97% instead.
Hosted by: Dan Couvrette, Publisher of Family Lawyer Magazine
Guest Speaker: Scott Clasen
Here’s a short excerpt from this Podcast to whet your appetite:
Over the past 25 years, I’ve heard from family lawyers that there’s a significant amount that they don’t get to collect on their billing. I’ve heard 20, 25, 30% of their bills go unpaid. Since you’re in the business of helping attorneys track, invoice, and collect from their clients, do you have any statistics on what is – and what is not – being collected?
Scott Clasen: It is very interesting and somewhat surprising the volume of invoices being sent out by lawyers and… the amount that is not being collected.
I know that there have been some legal trend reports that have been out there that the average is around 88% of invoices are collected that you’re leaving 12% of your revenue on the table. I think even more surprisingly we did an internal survey of our customers at TimeSolv asking them what their collection rate was and thankfully, the majority of the respondents said they were collecting between 90 to 100% of their invoices.
But more alarming was that almost 40% of the replies to that survey were that they didn’t know what their collection rate was. That’s obviously a huge issue in and of itself. Maybe they are collecting 95%, maybe they are collecting 65% – but if you don’t know your collection rate, that’s a big issue.