Cash is king for small law firms. Most don’t have large cash reserves, so monthly legal fee income needs to cover expenses and firm overhead. Unfortunately, many firms experience hills and valleys when it comes to income – some months are good, while others are more lean.

Cash flow crunch is real. In this episode, we talk about ways that small firms and solos can work to minimize the droughts and maintain a more steady flow of income through a combination of using practice management software, getting better clients/improving the ones you have, and utilizing credit cards and lines of credit.

 

In this episode you will learn:

* A recent report states that it takes most small law firms an average of 83 days to get paid

* Using a practice management system has saved John more than 6 hours a month (he likes to watch Netflix)

* Some clients just don’t understand they have to pay for legal services

* Requiring retainers, especially evergreen retainers, that can help you smooth out the ebs and flows of income

* When you accept credit cards, it becomes the credit card company’s problem

* Lines of credit are under-utilized by law firms as ways to get cash during lean times

Mentioned in this episode:

* Microsoft Word

* Rocket Matter

* Clio

* PayPal

Thanks for listening!

Questions? Comments? Topic Recommendations?

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