With the latest growth figures casting a shadow over the economic recovery and economists warning of a long, hard slog ahead, law firms would be wise to keep a tight rein on cash management as we move through 2011.
Reducing debtor days is one way in which law firms can increase cash at hand and reduce their reliance on bank lending. During the past 18 months the industry has shown signs of moving in the right direction, with many firms reducing their debtor days from around 140 to 95 days. However, there are further steps that could be taken to ensure collections remain under control.
