Press
Release
For Immediate Release
CONTACT:
Christy Burke
Burke & Company
(917) 623-5096
Orion Law Firm Survey Shows 66% of Respondents Have Seen Recent Increase in Collections and 56% Predict Increased Collections in 2012
81% Say Time Required to Collect on Open Invoices Has Increased in Last 2-3 Years
Atlanta, GA – May 3, 2012 – Orion
Law Management Systems, Inc. (www.orionlaw.com)
today announces the findings
of its Accounts Receivable (AR) Collection Survey, which
benchmarked trends in law firm financial collections activity. A visible trend
emerged showing that collections are either increasing or staying at an already
increased level at law firms of 50 attorneys or less*, and that clients are
taking longer to pay.
According to the Survey, 66% of responding law firms have seen their collections significantly increase in the past 2-3 years, and 56% anticipate that collections will increase in 2012 as compared to 2011. The top reasons clients gave for not paying were inability to pay (49%) and a lack of desire to pay (29%). 81% of participants said the time required to collect on open invoices has increased in the past two to three years. Firms practicing Business and Commercial law charted the highest days past due in AR (37%) with Insurance coming in second (27%) and Family Law third at 15%.
From a software standpoint, 51% of respondents used software to manage the collections function. 73% of those used Orion’s financial and AR collection management solutions. As for outsourcing, 85% of firms handled collections in-house and did not outsource that function.
Bruce MacEwen, President of Adam Smith Esq., consultants to the legal industry, comments, “The Orion survey results confirmed what we’ve been hearing for the past year or so: Namely, that the legal services economy has not fully recovered from the financial recession. Two-thirds of firms reported their accounts receivable have increased significantly in the past few years, and four out of five report the collections cycle has lengthened. These numbers speak for themselves.”
Orion’s President Paul Yelton adds, “AR collection at law firms across the country is definitely a concern that is not going away. Firms need to bring money into the firm efficiently and effectively. We are glad that the survey showed more than half of firms are using software tools to help them manage collections. It is definitely one of our top priorities to continually build systems that will directly address this problem so more money will come into the firm faster.”
To review the results of the survey, please click here.
*73% of the 41 respondents came from law firms of 50 attorneys or less.
About Orion Law Management Systems, Inc.
Founded in 1985, Orion Law
Management Systems, Inc. has dedicated its resources to providing law firms
with proven law practice management software. Utilizing a complete practice
management approach, Orion is a fully integrated law management system
employing the very latest in reliable technology. Orion centralizes your
Financial Management, Firm Management and Practice Management delivering the
competitive advantage law firms need to succeed. Orion Law Management Systems,
Inc. is headquartered in Atlanta. For information visit www.orionlaw.com, call 1.800.305.5867, email
info@orionlaw.com or follow us on
Twitter @Orion_Law.
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