Beyond the Numbers: Safeguarding Profit Through Smart Collections

Strong billing numbers are often celebrated as a marker of success. But billing is only the starting point. If realization and collections don’t follow, profitability suffers, and so does the firm’s long-term stability.

At Mattern, we regularly work with firms that generate impressive revenue on paper but still face margin pressure. One of the most common reasons? Collections that aren’t being actively managed.

Billables Don’t Equal Cash 

It’s easy to focus on billable hours and billing rates, but those only tell part of the story. If invoices are delayed, payment terms are unclear, or clients are slow to pay, the firm’s cash flow takes the hit. And when revenue sits in limbo, it limits more than just the finance team. It constrains hiring, hinders technology investment, and clouds leadership’s ability to plan with confidence.

Where Collections Break Down 

We’ve seen firms let collections run on autopilot. Some expect attorneys to chase down payments, others lean on outdated systems that offer little real-time insight. In either case, money that should be in the bank gets stuck in the pipeline.

Common issues include:

• Unclear billing policies or payment terms

• Delays in invoice delivery

• No centralized tracking or consistent follow-up

The result? Missed opportunities and strained profitability.

Build the Right Structure 

Strong collections aren’t about working harder; they’re about working smarter. That starts with structure:

• Clear payment expectations communicated upfront

• Standardized, easy-to-understand invoices

• Defined follow-up timelines with ownership assigned

• Firm-wide accountability for getting paid

These aren’t revolutionary steps. But when applied consistently, they reduce days outstanding, increase realization, and free up your team to focus on more valuable work.

What We’ve Learned

Collections may not be glamorous, but they’re foundational. Firms with strong collections have the flexibility to grow. Firms that neglect them, even with high billables, often feel stuck.

We help firms diagnose what’s not working, implement practical solutions, and restore the kind of financial clarity that empowers smart decisions.

Want to improve collections without burdening your attorneys? Let’s talk: info@matternassoc.com