The Hidden Revenue Leak in Law Firms and How to Plug It Before It Sinks Your Bottom Line
- Matt Darner
- Aug 27
- 3 min read
Updated: Sep 1
At TLTurner Group, we partner with experts who understand the financial blind spots that hold law firms back.
One of the biggest? Accounts Receivable (A/R).
That’s why we’re excited to feature this guest article from Matt Darner, Co-Founder of CollBox.
In it, he shares why unpaid invoices are one of the most overlooked threats to law firm profitability and how CollBox helps firms plug the leaks without damaging client relationships.
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Guest Article by Matt Darner, CollBox
Is Your Firm Leaking Cash? Take This Quick Audit:
Run through this 3-minute check. If you say “yes” to more than two, it’s time for a fix:
☐ More than 10% of revenue is in 60+ day A/R?
☐ Invoices sent sporadically or less frequently than monthly?
☐ Inconsistent or manual payment reminders?
☐ No dedicated team member whose only role is collections?
☐ No rolling 12-week cash flow forecast?
If you’re a managing partner or law firm owner, you’re likely focused on billable hours, active matters, and delivering great legal work. But there’s a silent threat to your profitability that rarely gets the attention it deserves:
Unpaid invoices.
The truth is, most law firms don’t struggle because they lack clients or work. They struggle because they don’t get paid for all of it and often don’t even realize how much revenue is slipping through the cracks.
Why So Many Firms Leave Money on the Table
Let’s look at the numbers.
According to Clio’s 2023 Legal Trends Report, the average firm collects only 89% of what they bill. That means for every $100,000 billed, $10,000 to $15,000 simply goes uncollected. For many firms, that’s $60,000/month or more in lost revenue.
This isn’t just a collections problem, it’s a visibility problem. A systems problem. A cash flow problem. And over time, it becomes a growth problem.
How Accounts Receivable Issues Quietly Undermine Firm Growth
Most firms don’t notice the impact of aging receivables until it starts affecting day-to-day operations:
You hesitate to hire because cash is tight.
You’re stretched thin but can’t afford extra support.
You avoid follow-up because you don’t want to jeopardize client relationships.
Your bookkeeping or admin team is stuck juggling past-due balances, with no training or bandwidth to manage it well.
All while 30-, 60-, and 90-day overdue invoices pile up quietly in the background.
It’s Not Just About Getting Paid. It’s About Gaining Control.
That’s where our partnership comes in.
TLTurner Group helps law firms build financial systems that improve visibility, from forecasting, budgeting, reconciliations, and strategic cash flow planning.
CollBox acts as your outsourced accounts receivable partner, helping you recover unpaid invoices, all while preserving your client relationships. No awkward phone calls from your staff. No angry emails. Just a smarter, more professional approach backed by a team trained in legal receivables.
Together, we give you the structure to prevent revenue leaks and the tools to clean up what’s already fallen through.
Real Firms. Real Results.
Here’s what happens when law firms take their Accounts Receivable (A/R) seriously:
Pines Federal Employment Attorneys recovered over $500,000 with CollBox’s support, enabling reinvestment in growth and team development.
Pinay Law saw a 70% revenue jump in just one month, recovering $70,000 by revamping their collections approach.
Yang Law recouped over $1.8 million while maintaining strong, trust-based client relationships.
TAW Law cleaned up years of aging receivables without ever damaging client goodwill or becoming “the bad guy.”
This is the power of smart financial infrastructure, not just more revenue, but more clarity, more confidence, and more control.
What High-Performing Firms Do Differently
Firms that thrive don’t treat receivables as an afterthought. They operationalize it.
They establish a weekly rhythm to track:
Time to invoice
Days to payment
Outstanding balances by client
Payment behavior patterns
Budget vs. actual cash flow
And when payments fall behind, they escalate gracefully, not aggressively, but consistently and professionally.
TLTurner Group + CollBox = Full-Spectrum Financial Clarity
We created this guide because we’ve seen the same story too many times: smart, hardworking firms missing out on revenue they’ve already earned.
Whether you need better systems, better visibility, or better recovery, or all three. We’re here to help you plug the leaks, clean up your receivables, and unlock the growth your firm is capable of.
Want to See What’s Possible?
Law firms don’t have to choose between doing great client work and getting paid.
With TLTurner Group providing financial visibility and systems, and CollBox handling receivables with professionalism, you gain both control and confidence in your cash flow.
Book a Strategy Session with TLTurner Group
Get tailored financial infrastructure, cash flow visibility, and smarter systems for your firm.
Get an A/R Recovery Review with CollBox
We’ll analyze your receivables, build a recovery plan, and get you paid. $100M+ recovered for firms big and small.
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