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Updated Accounts Receivable Policy

This Accounts Receivable (AR) Policy outlines the procedures and timeline for managing outstanding invoices and collections at Minnesota Construction Law Services. Effective management of accounts receivable is essential for maintaining cash flow and financial stability.

Timeline for Accounts Receivable Management

Day 1: Invoices Go Out

  • Invoices for legal services rendered will be generated and sent to clients on day 1 of the billing cycle.

Day 15: Statements Get Mailed

  • By day 15, statements summarizing outstanding invoices and account activity will be mailed to clients by the office administrator.

Day 30: Invoices Are Due

  • Clients are expected to make payment for outstanding invoices by day 30 of the billing cycle.

Day 60: Interest Starts Accruing

  • Starting on day 60, a monthly interest rate of 1.5% will begin accruing on unpaid balances.

Day 75: Statements with Past Due Stamp

  • Statements with a "Past Due" stamp will be mailed to clients with outstanding balances by day 75.

Day 105: Notice of Pending Suspension

  • On day 105, clients with overdue invoices will receive a letter stating they have 15 days to pay their invoices before work on their case is suspended.

  •  The responsible attorney on the case will also reach out to the client at this point to discuss payment arrangements.

Day 120: Suspension of Representation

  • If payment is not received by day 120, representation on the case will be suspended until outstanding invoices are settled.

Day 135: Withdrawal from the Case

  • By day 135, if payment is still not received, the firm will withdraw from the case. 

  • Any trust funds held for the client will be applied to the outstanding debt. 

  • The unpaid invoices will be transferred to a collection’s agency.

  •  The outstanding balance will be written off as bad debt.


Legal Team:

The responsible attorney on each case is responsible for monitoring the payment status of invoices, reaching out to clients regarding overdue payments, and discussing payment arrangements.

Billing Department:

The billing department is responsible for generating and sending invoices and statements, tracking payment activity, and initiating collections procedures as necessary.

Compliance and Enforcement

Compliance: All staff involved in accounts receivable management must adhere to this policy and follow the established timeline for invoicing, statements, and collections.

Enforcement: Failure to comply with this policy may result in disciplinary action, up to and including termination of employment.

Review and Updates

This policy will be reviewed periodically to ensure it remains effective and compliant with regulatory requirements. Updates will be communicated to all staff members.

Contact Information

For questions or concerns regarding this policy, please contact the Finance Department at 

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