Summary

Late client payments and inefficient billing processes continue to strain the financial performance of Global 200 law firms. New Elite research, based on in-depth interviews with CFOs across the US, UK, and Australia, highlights persistent revenue cycle management challenges—including delayed payments, inconsistent billing practices, and heavy reliance on manual processes. The findings also point to a growing shift toward automation, AI, and integrated billing technology as firms seek to accelerate cash flow and improve operational efficiency.

---

Revenue Cycle Management Under Pressure

Elite’s latest research report, based on more than 20 in-depth interviews with CFOs at Global 200 law firms, sheds new light on the state of revenue cycle management at some of the world’s largest and most complex firms.

Across regions—including the United States, the United Kingdom, and Australia—CFOs consistently highlighted late payments and billing inefficiencies as recurring challenges. These issues not only delay cash flow but also place additional strain on finance and billing teams tasked with protecting firm profitability in an increasingly demanding economic environment.

Late Client Payments Remain a Persistent Challenge

According to the research, nearly two in five CFOs (38%) said that at least half of their clients pay invoices late. As a result, invoices remain outstanding for an average of 83 days. The findings suggest that law firms operate with one of the highest days sales outstanding (DSO) figures compared with other industries, according to recent data from PwC. While external factors play a role, CFOs pointed to internal processes as a significant contributor to delays. More than two in five respondents (42%) said that not following best practices internally is the most common cause of billing and invoicing delays.

These delays have a direct impact on firm cash flow, working capital, and overall financial health—making revenue cycle efficiency a top priority for firm leadership.

Internal Measures to Improve Billing Discipline

To address billing delays, many firms are taking steps internally to enforce better practices. Nearly half of respondents (45%) reported using financial penalties—such as withholding bonuses—to encourage lawyers to accurately track time and submit timesheets on schedule.

While these measures may help improve compliance, CFOs acknowledge that policy enforcement alone is not enough. Process inefficiencies and fragmented systems continue to slow billing cycles, highlighting the need for more effective technology-driven solutions.

E-Billing Identified as a Key Opportunity for Efficiency Gains

Improving e-billing processes emerged as one of the most impactful opportunities for operational improvement. Nearly a third of CFOs (31%) said that consolidating to a single e-billing system would deliver the greatest efficiency gains for their firms.

Multiple billing systems often create friction, inconsistencies, and manual workarounds that delay invoice delivery and payment. By streamlining e-billing workflows, firms can reduce complexity, improve visibility, and shorten the time between work completion and cash collection.

Automation and AI Gain Momentum in Finance Teams

The research also shows growing momentum around automation and AI. More than two-thirds of CFOs (68%) said they are already using—or actively exploring—the use of automation and AI to reduce time-consuming manual processes.

One area in particular stands out: Outside Counsel Guideline (OCG) compliance. Despite its importance, the majority of CFOs (71%) said they still rely on entirely manual processes to review invoices against OCGs. This manual approach adds significant time and effort to billing workflows and increases the risk of delays, rework, and write-offs.

Technology Innovations Addressing Billing and Payment Challenges

Elite has introduced several innovations that directly address the challenges identified in the research.

Elite Payments, Elite’s invoice management solution, is now fully integrated into its flagship SaaS enterprise platform, 3E. The solution provides law firms with fast, secure, and flexible client billing capabilities. Adoption is accelerating, with Elite seeing a threefold increase in monthly transactions since January. Firms using the solution have reported reductions in time-to-payment of up to 40%.

Earlier this year, Elite also launched Elite Validate, an AI-powered billing compliance solution designed to streamline the OCG review process. By automating and simplifying a traditionally lengthy and complex task, Elite Validate helps firms reduce manual effort, improve compliance, and get invoices paid faster.

Real-World Impact: Gunderson Dettmer

For Global 200 firm Gunderson Dettmer, late payments had long been a familiar challenge.

“Clients would tell our collections team that the check was ‘in the mail’, and the check wouldn’t arrive for another three weeks,” said Bryan Rosenberg, Director of Finance. After adopting flexible billing capabilities embedded within Elite Payments, the firm saw immediate results. Time spent chasing payments decreased, and discounting on invoices was reduced by approximately 25%.

“Our clients are happy because they have access to even more resources to grow their business, and our partners are able to dedicate even more time to their clients and their growth,” Rosenberg added. “Finally, we are happy we don’t have to play bank for our clients. It’s a win-win.”

Why Revenue Cycle Management Matters More Than Ever

Elite CEO Mark Dorman emphasized the growing importance of revenue cycle management in today’s economic climate.

“Good revenue cycle management really matters to a firm’s financial health, but as we can see, 2025 has been fraught with challenges,” said Dorman. “CFOs are clearly on the front line, working hard to protect their firm’s bottom line while ensuring the adoption of best practices and fit-for-purpose processes to steer them through an increasingly tough economic environment.”

For law firm CFOs, the path forward increasingly depends on technology. By automating and streamlining core financial management processes, firms can convert work into cash faster, improve efficiency, and reduce the friction that slows payment cycles.

FAQs

Q: Why are late payments such a common issue for large law firms?

A: CFOs cite a combination of client behavior and internal process gaps, including inconsistent billing practices and delayed time entry.

Q: What internal factors contribute most to billing delays?

A: More than two in five CFOs say not following best practices internally is the most common cause of billing and invoicing delays.

Q: How are firms trying to improve billing discipline?

A: Nearly half use internal financial incentives or penalties to encourage timely time entry and billing.

Q: Where can automation and AI have the biggest impact?

A: CFOs identified outside counsel guideline compliance as a major opportunity, with most firms still relying on manual review processes.

Q: How does integrated billing technology help reduce time-to-payment?

A: Integrated solutions streamline invoice delivery, improve visibility, and reduce manual steps—helping firms get paid faster.

Learn More

View the full CFO Survey.