A law firm can have a strong month on paper and still feel uncomfortable when it looks at the bank account. That usually happens because revenue, accounts receivable, and cash collected are three different things. A firm may perform and bill a significant amount of work, but if clients have not yet paid, that revenue […]

A strong bank balance feels reassuring, but it only shows what is sitting in the account today. It does not tell you whether receivables are aging, billing is slowing down, expenses are increasing, or certain matters are becoming less profitable. For a managing partner making decisions about hiring, spending, distributions, or growth, those details matter. […]