A/R: The Profit-Eating Machine

About this episode

Ed Gegan shares his transformation in managing accounts receivable and improving cash flow in his law firm by adopting profit first principles.

In a well-run law firm, there is really no reason to ever have any accounts receivables at all. Not if you are using the IOLTA Client Property Trust Account the way it was actually invented and meant to be used.” – RJon Robins, author of Profit First for Lawyers The Hidden Profit Killer In this episode, Ed Gegan reveals how he stopped the profit-eating cycle that was destroying his cash flow and peace of mind. By adopting profit first accounting principles and taking action on the lessons learned from reading Profit First for Lawyers, Ed has seen tremendous law firm growth. He shares the shift his business, team, and family transformed when he stopped the “bill and pray” method of getting paid for his services. In a clip from the audiobook recording of Chapter 14 “For When You Really Take Profits Seriously”, RJon breaks down the devastating mathematics when clients don’t pay. One non-paying client creates a scenario where you are working multiple cases just to break even. The result? Exhausted owners with no enthusiasm left for the business. A Profitable Transformation Like Ed, most law firm owners don’t realize how accounts receivable…

People in this episode

Guest: Ed Gegan

Topics covered

• accounts receivable
• profit first accounting
• law firm growth
• cash flow
• financial reports

Keywords

• profit first
• law firm
• accounts receivable
• cash flow
• financial management

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