Write-offs are all too common at law firms, impacting profitability and, in the case of smaller firms, the ability to make ends meet. On average, law firms write off as much as 14 percent of their total bills. The reasons for these write-offs are multi-fold and unfortunately, because of their ubiquity, law firms have become complacent in accepting them as an inevitable part of firm life.
But just because they are common doesn’t mean firms should have to accept the status quo. No firm should have to dismiss earned revenue or go unpaid for work completed. Thanks to advances in technology today, they no longer have to. Here we explore how and why write-offs have grown in number, what their effect on law firms is, and what can be done about it.
