"Lawyers become lawyers because they want to help people and practice the art of law," says Los Angeles financial consultant Gene Siciliano, CMC, CPA, author of Finance for Non-financial Managers (McGraw-Hill, New York). And once in practice, lawyers focus exclusively on their technical expertise, not the essentials of running a business successfully. "They think they can get … [Read more...] about The top five reasons firms lose money and go out of business
Billing & collections
Don’t give discounts to clients without first calculating cost
Discounts are dangerous things. Some firms give them out willingly in exchange for a guaranteed volume of business. Others wind up having to take them for lack of client planning. You need to understand the dollar cost of every discount. Calculate how the firm will fare with the business and without it and know how much discount the firm can accept. Even better, keep control on … [Read more...] about Don’t give discounts to clients without first calculating cost
Make payment and collection policies work together to boost cash
Revenue problems? The best way to solve them is to prevent the collection problems. And the best way to prevent the collection problems is to put in a payment policy and enforce it from the first day. Along with that policy, weed out the poor-pay risks. More still, follow the little tactics that can spell the difference between payment and non-payment. Ignore the collection … [Read more...] about Make payment and collection policies work together to boost cash
7 ways to improve your billings and collections processes
The financial face of the legal business has changed over the years and most firms have learned to become aggressive about collecting outstanding accounts. However, if your firm is still allowing clients to delay payment, recognize that it's costing you money, sometimes a lot of money. "An unpaid bill is an interest-free loan," says business and financial management … [Read more...] about 7 ways to improve your billings and collections processes
Louisiana firm bases attorney bonuses on amount collected
A Louisiana firm set up an attorney bonus program that rewards not the amount billed but the amount collected. It is attorney-specific, which means the good performers get rewarded accordingly. And the payouts are given every quarter. The program rewards the quality producers, the attorneys who not only put numbers on the books but whose efforts and billable hours … [Read more...] about Louisiana firm bases attorney bonuses on amount collected
The engagement letter: safety comes from clarity
Six things that client needs to know An engagement letter is protection – for both firm and client. It prevents argument on what the firm is expected to do for the client and what the client is expected to do for the firm. Thus, it needs to be clear, brief, and readable. Don't give the client "a scholarly work or something that reads like an insurance policy," says … [Read more...] about The engagement letter: safety comes from clarity
5 partnership points that cause more than the usual headaches
It's the partnership wonder. Many, many firms, from the smallest to the most sophisticated and well known, don't have partnerships agreements. Without an agreement, every facet of the practice is a potential battleground, says Arthur J. Ciampi of Ciampi LLC, a Manhattan company that represents law firms in partnership disputes. Ciampi is also coauthor of a book entitled Law … [Read more...] about 5 partnership points that cause more than the usual headaches
How to protect your client data while complying with PCI anti-fraud measures
What would you do if you were asked to install monitoring software on your network? Gary Allen Gardner of Rosi & Gardner, P.C. in Traverse City, Michigan, shares how he resolved a recent troubling request his firm received. We were contacted by our credit card processing company, regarding "PCI Compliance" (Payment Card Industry). By email and subsequent list of … [Read more...] about How to protect your client data while complying with PCI anti-fraud measures
San Diego firm gets more cash faster with easy-to-use online credit card payment system
It can be pretty daunting to introduce a new feature on your website, especially one that involves financial transactions. But when it came time to update the website for San Diego law firm Marks, Finch, Thornton & Baird, LLP, and start offering clients the ability to pay their bills online, the only thing that really caught firm administrator Linda Quindt off-guard was how … [Read more...] about San Diego firm gets more cash faster with easy-to-use online credit card payment system
5 trust account errors that will get a firm in trouble
By Elizabeth M. Miller bio There have been recent reports of law firm trust accounts being involved in money laundering. Maintaining and managing a trust account is regulated by local bar rules. The main reason for this is that the funds do not belong to the firm. Trust monies are client funds deposited with a law firm intended to be used for the benefit of the client. I … [Read more...] about 5 trust account errors that will get a firm in trouble