Billable hours is one of the most important law firm KPIs for any growing firm to track. Your law firm’s billable hours will help you understand how much of the time being spent is directly resulting in revenue for your firm. If you find that billable hours are low, it could be an indication that … Read more
When we say to delegate things that could never be considered billable time, we’re talking about things like accounting, marketing, and secretarial work because these are the things that have the biggest impact on your small law firm’s utilization rate. When you, a qualified and professional attorney and law firm owner, waste time on writing social media posts, pouring over trust accounts, and writing emails to clients, you’re cutting into your billable time dramatically. This is one of the most common ways that small law firms struggle to finally scale.
While it might seem daunting, implementing credit cards for law firms doesn’t have to be an arduous undertaking. Not to mention, it’s well worth the upfront time investment. The 2021 Legal Trends Report found that 66% of clients expect law firms to accept online payments. With over 100 million credit card transactions occurring in the U.S. every day, giving clients the ability to pay you via credit card is financially and logistically beneficial.
If you’re just starting your firm or looking to grow rapidly over the next year, you may be considering business loans for attorneys or other forms of law firm financing. Before you sign a promissory note on your next business loan, it’s worth considering how taking on this debt will impact your growing law firm in the short and long term.
Like many other law firms, you may be struggling to ensure your cash flow stays consistent – especially in the aftermath of the pandemic. Most small law firms also have past due accounts, which can kill cash flow and make it impossible to pay employees and bills. Regardless of your law practice’s financial health, there … Read more
The best way to pay yourself as a lawyer is a matter of debate. However, determining the method that will work best for you is one of the most important things you will decide when establishing a law firm. Because your options are largely determined by how you structure your law firm as a business, it’s important to explore your self-paying options as early as possible.
1. Draw Payment
2. Distributive Share
3. Earned Salary
Every state bar association requires that an attorney reconcile their trust bank statement to their clients’ individual balances either monthly or quarterly. This reconciliation process is one of the more important rules in three-way trust account management. It’s also one of the rules that attorneys most often overlook, often resulting in unfortunate consequences.To prevent you … Read more
Most solo lawyers struggle with the everyday management of their firms. When it comes to solo law firm bookkeeping, hiring experienced financial professionals can be the difference between success and struggle! If you’re a solo lawyer, you’ve likely wondered whether you can – or should – hire a bookkeeper. Bookkeepers can provide a more hands-on, detail-oriented perspective to your law firm. They can also oversee your financial transactions, reconcile your financial statements, and provide critical office support to help lawyers like you succeed!
If your law firm is trying to manage client records, documents, appointments, schedules, and deadlines manually – or worse, using several different programs – investing in an all-in-one legal software can save your firm money, and transform your firm’s operations for the better! The best law practice management software programs streamline your firm’s daily operations, … Read more
Three Ways to Measure Your Law Firm’s Profitability:
1. Utilization Rate
2. Realization Rate
3. Outstanding Balances and Fees