One common priority at the start of a new year is improving financial health and cash flow – two areas critical for stability and growth. While legal firms often prioritize and excel in exceptional client service, managing financial processes like credit control can be challenging and time-consuming.
If your firm is looking for a way to streamline operations, boost efficiency, and maintain a strong cash flow, outsourcing credit control could be the perfect solution.
Free Up Valuable Time for Your Team
Effective credit control requires consistent communication, follow-ups, and tracking payments. This can be a drain on internal resources, especially for small to mid-sized firms where staff often juggle multiple responsibilities. According to a recent article, businesses that outsource their credit control experience an average cash flow improvement of 40%, with some seeing gains of up to 80%. Faster invoice payments reduce lending costs, boost profits, and increase working capital, enabling investment in growth. Outsourcing credit control also allows your team to focus on their core responsibilities while professionals manage overdue invoices and accounts receivable.
Maintain Strong Client Relationships
Credit control can sometimes be a sensitive subject, especially when dealing with valued clients. Outsourcing allows a neutral third party like Cashroom to handle payment reminders and collections in a professional and courteous manner. This approach ensures that your firm maintains positive relationships with clients while ensuring you are paid.
Improve Cash Flow Consistency
Cash flow is the lifeblood of any business, and law firms are no exception. Outsourced credit control providers use proven strategies and tools to minimize late payments and ensure consistent cash flow. With a steady influx of revenue, your firm can better manage expenses, plan for growth, and avoid unnecessary financial stress.
Gain Expertise and Efficiency
Outsourced credit control providers specialise in the nuances of debt collection and credit management. They bring industry expertise, advanced tools, and established processes to ensure invoices are paid promptly. Their focused approach often results in quicker collections and fewer overdue accounts compared to in-house efforts.
Ensure Compliance with Regulations
Credit control isn’t just about chasing payments – it’s also about adhering to relevant financial regulations and maintaining accurate records. Outsourcing ensures that your firm’s credit control processes are compliant, reducing the risk of errors and potential penalties.
Start the Year with a Clean Slate
The New Year is a great time to address overdue invoices and establish better practices for the months ahead. By partnering with an outsourced credit control team, you can swiftly resolve persistent accounts receivable challenges, establish robust follow-up strategies, and steer your business towards financial excellence. Let outsourcing lift the mental load from your team and you, paving the way for a more focused and productive year.
Why Choose Cashroom?
At Cashroom, we specialise in helping law firms improve financial operations through our outsourced services. With over 15 years of experience and a team of over 100 legal bookkeepers, accountants, and financial professionals, we understand the unique needs of law firms and provide solutions tailored to meet them.
When you outsource credit control to Cashroom, you’re not just delegating a task -you’re partnering with a team dedicated to helping your firm succeed.
Make This the Year You Take Control of Your Finances
Outsourcing credit control to Cashroom is a strategic decision that can transform your firm’s financial management. With improved cash flow, stronger client relationships, and more time for your team to focus on core work, you’ll be better positioned to achieve your goals in 2025.
Ready to get started? Contact Cashroom today to learn how we can support your firm’s credit control needs.
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About Cashroom
Cashroom provides expert outsourced accounting services for Law Firms including Bookkeeping, Management Accounts and Payroll services. Our mission is to free lawyers from the complexities of legal accounting by supporting the industry with accurate management information and allowing lawyers to do what they do best – practice law.
