BigHand: 50% of Firms Say Aged WIP Is Primary Cash-Flow Pressure Driver

BigHand's 2026 Annual Law Firm Finance Report — with data from across the Am Law spectrum — found that 50% of firms now cite aged WIP as their primary cash-flow pressure driver, up from 32% in the prior year. Nearly 90% of firms confirmed increased write-offs, with 88% expecting further increases in 2026. Despite strong top-line results, the report warned that cash-flow predictability has become a "major concern": 64% of firms reported a decrease in billable hours at the matter level (likely reflecting AI efficiency on specific tasks), while 99% have increased attorney targets and plan to increase them again. The combination — rising write-offs, slowing collections, and escalating WIP — suggests that the H1 2026 net income gains are concentrated in firms with strong realization management disciplines, and that the median experience across the market is considerably more pressured than the aggregate numbers indicate.