In what condition are your accounts receivable?

While your total accounts receivable number from your accounting system tells you the total amount of money owed by your firm’s clients, your accounts receivable report should be aged 30, 60 and 90+ days to give you greater information of the state of your receivables.

The 2008 Juris Law Firm Economic Survey from LexisNexis (the last date for which we have such a survey – they are no longer being published – a great loss as these surveys were very detailed and informative) shows that ‘days fees outstanding’ for accounts receivable in 2008 …

If you consistently and accurately log your time, your work in progress report is like an oracle, allowing you to take information in your financial system and turn it into a reasonably accurate prediction of what your cash flow situation will be like in the weeks to come.