Understanding your law firm’s profitability is key to operating a thriving and sustainable law firm, but profitability analysis can be challenging with so many different ways to evaluate your profit. The truth is, there is no “correct” way to measure law firm profitability, and the best firms actually take several different approaches to arrive at … Read more
Building an effective marketing budget can be a challenge for law firms, especially those that are small or have limited budgets to work with. In order to maximize your marketing spend, we recommend not only seeking support from a marketing professional but also that of a specialized financial professional. By working with a specialized bookkeeper … Read more
Being able to effectively delegate is essential for attorneys and small law firms. When it comes to boost profitability at your law firm, ensuring that attorneys are able to fully focus on billable hours is one of the best ways to see an immediate, positive impact on your bottom line. Many attorneys are lucky to … Read more
Tax day is just around the corner, and with Partnership and S-Corp returns due on March 15th, we wanted to share some key information about how to best prepare your law firm for tax season this year. Being prepared for tax season is the #1 way to ensure that you’re not strapped for cash when … Read more
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