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Time to be canny about cash flow

19 November 2018 / Norman Kenyon
Categories: Features , Profession , Costs
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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,

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