Law firms are waiting an average of 45 days to get paid, new research indicates.
There has been a big drive in recent years by law firms to cut down the waiting period which is proving successful – in 2015 the average waiting period was 45 days. What’s more, firms appear to also be successfully reducing the amount of time locked up in unbilled continuing work.
“Considering how cautious clients are about paying promptly, turning completed work into bankable income more quickly is a great result,” a spokesperson for the research says.
Commenting in The Times*, Edward Fennell says he does however feel the word ‘cautious’ is “perhaps too kind”.
Poor cashflow management is one of the greatest problems for any business, but it is especially concerning for barristers, particularly in the light of cuts to legal aid earnings. This is where assistance from a specialist accounting, tax and wealth management adviser can prove invaluable.
Our specialists at Beavis Morgan are available to help barristers in a wide range of management accounting services. Included in these services is the ability to offer specialist cashflow management advice, both in terms of tax and in terms of keeping on top of debt. We can also help barristers’ Chambers to get on top of their arduous credit control functions.
Ideally, Beavis Morgan will operate to support cashflow management and accounting for individual barristers, whilst working alongside their Chambers to keep the money flowing in. Dealing with both barrister and Chambers means understanding the nuances of the legal profession, and it is in this area that our experts at Beavis Morgan have the desired know-how to advise and assist. Our services are tailored according to your specific requirements and objectives, always seeking opportunities to enhance wealth accumulation and succession planning, and ultimately reduce your tax bill.
We are also regular contributors to Barrister Magazine and the Barrister Lifestyle Blog, providing expert commentary on topical issues relevant to barristers and the legal profession as a whole.
Contact Matthew Burge or your usual Beavis Morgan Partner for further information about how we can assist you and your business.
* Source: The Times Law Journal (11 January 2018)
