As we approach the end of the fiscal year and businesses of all industries are set to close their annual accounts, the area of year-end collections emerges as a focal point. In the professional legal sphere, this somewhat mundane yet essential process has been, in numerous instances, the cause of certain frustrations among General Counsels (GCs). Details of these year-end collection pet peeves have been recently elucidated by the New Jersey Law Journal.
In the discussions held by the Journal, many GCs have shared their insights, experiences and issues encountered with law firms when balancing the books. Handling such situations demand a high level of administrative competence, meticulousness, and, above all, patience. Many of these year-end collection pet peeves could potentially be mitigated or eliminated entirely if more proactive and refined communication strategies were employed by the law firms in charge of collections.
While the specific frustrations that GCs cite have been numerous, they invariably converge on one key concept: the need for more effective communication and better set procedures for year-end collections. Some notable examples of grievances being expressed are unexpected invoices or discrepancies in billing, and the improper or insufficient communication regarding receivables.
Addressing this important aspect of financial management and improving the efficiency and generality of the year-end collections process is in the best interests of both law firms and their corporate clients. This improvement not only reduces frictions at the end of the financial year but it also reduces the demand for reconciliation and resolution, thereby reducing the chances of escalating minor issues into serious conflicts.
For a deeper understanding of what has been discussed in the New Jersey Law Journal, and for more insights into managing year-end collections more effectively, find the full notes from the discussion on this page.