Get money on account!

I trust you had an enjoyable festive break wherever you were and managed to avoid the lurgy, unlike me!Now we’re in a brand, new year, and it’s time to fly.I am flabbergasted.  My gast has never been more flabbered that law firms are still not getting money on account.By the way, this applies to any service-based business.This is what I hear, time and again.🟣 We as a firm don’t get money on account.  We do the work then we bill.  Our clients are good and always pay us.  Bla bla bla. So what? 🟣 We get money on account from new clients.  We trust our regular clients.  They always pay.  Of course, they do, until they don’t. 

Even if you’ve had a client for a very long time, can you honestly guarantee 100% that they will pay if you bill after doing the work?

You can bet your bottom dollar that if they have a money problem, they will put themselves before you, and that’s a fact.

It’s human nature.🟣Some practice areas in the firm get money on account and some don’t. 🟣Even within a team, some fee-earners get money on account and others don’t. And that may also vary from one day or week to the next.

And it’s not just good enough to get money on account at the beginning, it must be topped up regularly, so the firm is never in a position where work has been done and there is money owing.

Potential problems of not getting money on account:💧You will lose money and that is guaranteed but it’s not the sort of guarantee that you want.

I recently heard one firm who was stung for a very large amount of money - a quarter of a million to be precise -which is not only crippling financially but emotionally too.

💧Cash flow may be poor.💧You will have debt.💧 You will have write-offs.💧 You will waste time.💧 You will be more stressed.💧 You will just have more problems.Ipso facto, here are the benefits:💎 You will make more money because the firm will always get paid!💎 You will dramatically improve cash flow.💎 You will eliminate debt.💎 You will eliminate write-offs.💎 You will be perceived as more professional.💎 You will attract better clients.💎 You will save time.💎 You will eliminate stress and other problems.Have I missed any other benefits?So, what are you waiting for? 

Decide as a firm that getting money on account is your standard procedure and make sure all relevant client-facing staff know this.

Other firms are, why not you?Oh I know there is resistance and reluctance because that’s not how you did it in the past, so maybe your lawyers aren’t confident asking for money up front.Don’t worry, I can help with that.