Improving cash flow is a top priority for most accounting firms. Whether you’re managing seasonal fluctuations, funding growth, or navigating a more complex business structure, stronger cash flow gives your firm the flexibility and stability it needs to thrive.
But here’s the reality. Many firms focus on the wrong things.
When leaders talk about improving cash flow, they often start with billing rates, cutting costs, or chasing overdue invoices. While those areas matter, they usually overlook the single biggest source of inefficiency - the billing and collections process itself.
And that’s the #1 mistake firms make. Trying to improve cash flow without fixing how they get paid.
Manual billing and collections create hidden cash flow problems
For many firms, billing and collections are slow, inconsistent, and overly manual. Work is completed, but invoices are delayed. Follow-ups are handled differently across departments. Payments trickle in weeks - or months - after the invoice is sent.
If you’re not addressing these breakdowns, you’re leaving cash on the table.
Consider this:
- Manual collections processes can lead to 30–50+ day delays in DSO
- Inconsistent reminders mean payments slip through the cracks
- Disconnected systems create extra work during reconciliation
- Clients are left navigating multiple portals or waiting for paper invoices
It’s not that firms aren’t working hard enough, it’s that their systems are working against them.
Faster payments start with smarter processes
The firms that are successfully improving cash flow aren’t just collecting more aggressively, they’re removing friction from every step of the payments process.
That means:
It’s about making it easy for clients to pay and easy for your team to track what’s owed.
When firms modernize their billing and collections, they often see dramatic results like cutting DSO by 30–50%, which saves staff time and reduces write-offs.
Technology is a tool, not the whole answer
Upgrading payments technology is an important step, but it’s not just about the tool. It’s about how you implement it and whether it supports the way your firm actually works.
Look for solutions that:
- Integrate with your practice management system
- Support multi-entity fund flows and surcharging
- Provide real-time visibility for partners and finance leaders
- Help your team automate without losing control
Choosing the right platform can give your team the structure and consistency they need to scale cash flow improvements firm-wide.
Where to start
If your firm is trying to improve cash flow, don’t start by tightening collections or chasing late payments. Start by looking at how your payments process actually works - from the moment an invoice is sent to when the payment is reconciled.
The biggest gains don’t come from working harder. They come from working smarter and removing the inefficiencies that slow you down.
