header-logo header-logo

19 November 2018 / Norman Kenyon
Categories: Features , Profession , Costs
printer mail-detail

Time to be canny about cash flow

istock-136163689_2.jpg_image_for_vfs

Norman Kenvyn shares some tips on how to avoid stretched billing timescales

It’s beginning to look a lot like Christmas, with festive food clogging up shop shelves and decorations starting to line the streets across the country.

For law firms, the mince pies and festive lights also herald potential interruptions to cash flow. If a law firm settles a case on 14 December, for example, it's unlikely to see any cash until some way into the new year.

If a law firm settles a case on the 21 December, where does that leave them? It’s unlikely to be able to get its hands on the cash until some way into the new year—all the costs draftsman will be wrapping their presents and hanging their stockings rather than stuck at their desks drawing up a bill of costs. It puts back cash flow calculations by a month, and the money they desperately need to bolster their cash reserves is out of reach.

Cash flow is seemingly an intractable problem for law firms, no matter how large or small. A recent survey into

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Anthony Collins—20 promotions

Anthony Collins—20 promotions

20 promotions mark major people investment at national law firm, Anthony Collins

Sidley—Elaine Whiteford

Sidley—Elaine Whiteford

Sidley adds competition litigator Elaine Whiteford in London

Charles Russell Speechlys—Claudina D’Costa

Charles Russell Speechlys—Claudina D’Costa

Charles Russell Speechlys welcomes Claudina D’Costa as Director of Client Development Marketing

NEWS
The 25th Pro Bono Week begins today until 6 November, with events hosted by law firms, chambers, law schools and charities across the UK
Aggressive sales tactics can add up to fraudulent trading even without proof of a particular deception or financial loss
Judges risk weakening their own independence by staying silent over government reforms, a leading public lawyer argues
A discount on damages does not automatically mean an equivalent haircut for legal costs in military deafness claims
Police powers targeting concealed identities at protests come with procedural conditions that could determine whether prosecutions succeed
back-to-top-scroll