One of the many things we see when consulting with law firms to improve their business processes is that many are missing out on billing opportunities or billing incorrectly, resulting in a high percentage of rejected invoices or uncollected funds. If a law firm’s business processes aren’t well organized, then it’s at a higher risk for billing for less than entitled, or not at all.
The ability to accomplish a task or process without wasting materials, time or energy is a key factor to successfully running a law firm. But it’s easy to lose sight of efficiency when the necessities of practicing law, coupled with compliance requirements, pull your team in different directions throughout the day.
There’s a reason law firms hear the same thing over and over again like, “Eliminate costs, increase efficiencies and focus on revenue-generating tasks.” It’s because there is significant profitability potential in doing them. Unfortunately, most firms haven’t found the processes that work best for them, because it can be difficult to identify disconnects and opportunities to improve.
The housing crisis of the mid 2000’s was a boom period for creditors’ rights law firms. In most states, there was an over-abundance of work and competitor firms were, initially, in short supply.
Since the rebound of the mortgage and housing market, creditors’ rights law firms are dwindling due to demise, acquisition or merger. The current environment is highly regulatory and when firms are under the increased compliance scrutiny in addition to the squeeze on resources, it’s crucial for them to cut costs and work as efficiently as possible to retain a profit margin and grow their business.