Optimizes billing and collections cycle to improve the bottom line

Results

  • 61% reduction in DSO from 80 days to 31 days
  • 99% transitioned to e-billing from manual billing
  • Reduced monthly AR of $32M to a $1.5M average
  • Shortened billing process from 45+ days to 11 days

Story

An AmLaw 100 firm has more than 600 fee earners across 14 offices. Known for its unwavering commitment to clients, the firm provides a comprehensive range of legal and advocacy services. To further support their growth and improve bottom-line revenue, the company needed to transform their billing and collections process.

Unfortunately, a running trend throughout the legal industry is a long billing period. In Williams Lea’s 2019-2020 Trends and Opportunities in Law Firm Outsourcing Survey, 70% of firms reported that their DSO averaged between 30 and 60 days. The delays have a direct impact on cash flow.

  • Challenge

    This AmLaw 100 firm had the same challenge when it came to billing and collections for one of their largest clients, a leading financial institution who spends $35M per year with the firm. Their finance department wasn’t adequately staffed to support the current workload, even with a dozen additional temp resources brought in each month to help with invoicing. The lack of consistent and streamlined processes led to 50% of the invoices rejected by the client’s e-billing system, DSO of more than 80 days, and a significant delay in AR each month.

  • Solution

    Williams Lea conducted a comprehensive audit of the firm’s billing process. Based on our due diligence, we recommended that billing be transferred to our onshore delivery center in Wheeling, WV, where we streamlined and optimized the process to address issues such as outside counsel guideline compliance and rebills. We also developed a quality control system, where our team reviews proformas before they are forwarded to the attorneys, cutting back-and-forth discussions between them and their client’s billing department.

  • The enhanced process, as well as the superior skills of the onshore team, allow for the timely and accurate completion of invoices. The firm saw an immediate reduction in billing time and DSO, and a marked improvement in AR collection. We were also able to transition the client to 99% e-billing.

    Today, the firm benefits from centralized support by a dedicated team at our onshore delivery center that has oversight on the end-to-end process. We now handle the full billing process, from entering time and billing invoices to collecting payment.

By optimizing the firm's billing and collections process, Williams Lea was able to reduce DSO from 80 to 31 days and average monthly AR from $32M to $1.5M.