Any firm can lose money to the very partners who are bringing in the most of it. That's because firms measure partner profitability by revenues only, and that doesn't show the full financial picture, says practice management consultant Andra Watkins of Positus Consulting in Charleston, SC. There's also a subjective side to evaluating each partner's contribution. And that … [Read more...] about What’s overshadowing your partnerʼs big revenues?
Billing & collections
The forgotten cause of malpractice claims is poor communication
One often ignored cause of malpractice claims is nothing more than poor client communication. People judge their attorneys by the quality of the relationship, explains Nora Bergman, a Tampa attorney and advisor with the Atticus law firm practice management company in Mt. Dora, FL. "That's true of all clients," she says, "whether bluecollar worker or sophisticated banker." They … [Read more...] about The forgotten cause of malpractice claims is poor communication
Some not-so-difficult ways to increase revenue
Need a better bottom line? Don't go the way of most firms and start "stripping the heck out of the operating costs." The real dollars come from increasing revenue. And doing that is often more common sense than magic, says financial consultant Michael R. Marget, managing director of 4L Law Firm Services in Tampa. Get under the payment wire The first and easiest way to … [Read more...] about Some not-so-difficult ways to increase revenue
Use weekly financial reporting to keep partners aware of cash flow
A Vermont manager has found that running the financial reports weekly instead of monthly is an easy way for the partners to stay always aware and in control of what's going on. They see every penny that has come in and gone out. They know how each attorney and each practice area is faring. And they know when to expect extra expenses and what the taxes are likely to be. The … [Read more...] about Use weekly financial reporting to keep partners aware of cash flow
To-Dos: Your April office checklist
Here are a few tasks that should be addressed this month. Do a first quarter evaluation with employees who have a billing quota. Assess where they are in terms of reaching the annual goal and discuss any changes that need to be made, adjustments in procedures for capturing time or time management skills. Review the firm's profit and loss statement as it compares to the … [Read more...] about To-Dos: Your April office checklist
15 ways to improve your billings and collections
It's no secret that many clients don't like to pay their legal bills, says collaborative divorce attorney Joryn Jenkins. And without having measures in place to ensure payments, law firms can run into huge headaches. In a webinar for Law Office Manager, Jenkins, CEO of Open Palm Law and Open Palm Press in Tampa, FL, and Elizabeth Miller, an independent law firm administrator … [Read more...] about 15 ways to improve your billings and collections
Is your firm struggling with cash flow?
By Brenda Barnes bio Henry Ford once said, "Vision without execution is just hallucination." While revenue production is the core goal for every business, the real magic is in understanding and managing your cash cycle. You can't execute without cash. According to Patty Block, consultant and owner of The Block Group, many small businesses struggle to appropriately … [Read more...] about Is your firm struggling with cash flow?
Keep profits on track with this quick 5-point spring financial checkup
It happens every January. The firm makes grand resolutions to improve the financial performance. But by spring, the attorneys get bogged down in their old habits. It's the administrator's job to keep the attorneys focused on their financial resolves, because their abilities and interests lie far more in law than in business. Take a hard look now at what's going on financially … [Read more...] about Keep profits on track with this quick 5-point spring financial checkup
How to create a budget for your law firm
While many attorneys cringe at the thought of creating a budget, there are five important reasons why your law firm needs one, says Elizabeth Miller, an independent law firm administrator and consultant. Budgets help law firms achieve long-term goals, such as growing their businesses or buying an office instead of renting office space. You can't spend money you … [Read more...] about How to create a budget for your law firm
Sample Budget Spreadsheet
Why you need this budget spreadsheet: While many attorneys cringe at the thought of creating a budget, there are several important reasons why your law firm needs one, including helping you prepare for unexpected expenses. How this budget spreadsheet helps you: This 12-month, month-by-month spreadsheet lists some common fixed expenses of a law firm. How to use this budget … [Read more...] about Sample Budget Spreadsheet