Collection work is something that can't wait, because a dollar of receivables doesn't stay a dollar for long. The dollar the office bills this month will be worth only 50 cents six months from now. In a year, it will be worth no more than 23 cents and probably more in the range of 19 to 20 cents. After two years, a 5-cent recovery is about the best any office can expect. Much … [Read more...] about Keep your accounts receivable young
Billing & collections
A guide to understanding financial data
Law practice owners, especially those operating smaller firms, tend not to be super-knowledgeable about financial statements and the financial state of their operations, according to Brenda M. Clarke, a partner at Seigneur Gustafson LLP in Lakewood, CO. "They look to their staff, their office managers, their (financial) controllers, to help guide them," says Clarke, adding … [Read more...] about A guide to understanding financial data
To-Dos: Your September office checklist
Now that the summer is over and you're facing the final quarter, it's time to roll up your sleeves and get to work. Here are some important tasks you need to address now to ensure that you finish the year strong and are realistically prepared for next year. 1. Plan your staffing Start thinking about your staffing requirements for the coming year. Will you be adding another … [Read more...] about To-Dos: Your September office checklist
Why budgeting and cash flow forecasting are essential for effective law office management
Regardless of your opinion of budgets, they are vital for building and managing a law practice, says Brenda Barnes, a certified public accountant (CPA) and managing principal of B2 Management and Consulting LLC. She adds that while lawyers often don't appreciate or pay attention to budgets, they are critical to financial planning within your firm. The benefits of a budget … [Read more...] about Why budgeting and cash flow forecasting are essential for effective law office management
Cutting costs? What worked in 2008 won’t work today
When money is tight, firm administrators start rushing to make decisions to save the bottom line, perhaps relying on strategies that saw the firm through the recession. But hold on, cautions Peter A. Giuliani of Smock Law Firm Consultants in Weston, CT. These decisions have to be made with long-term survival in mind. And the cost-cutting approaches that worked for firms during … [Read more...] about Cutting costs? What worked in 2008 won’t work today
Trust account errors that could get you disbarred
As a law firm administrator, trust accounting issues need to be your primary concern, according to Joryn Jenkins, a collaborative divorce attorney, author and CEO of Open Palm Law and Open Palm Press in Tampa, FL. Elizabeth Miller, an independent law firm administrator in Tampa Bay, agrees, adding that of five trust account errors that could land you in serious trouble with … [Read more...] about Trust account errors that could get you disbarred
Louisiana firm sets up four sure-pay systems
A Louisiana firm has added a handful of measures to its billing and collections work that, while simple, have generated significant benefit. There's a procedure to ensure the client contact information stays accurate, a soft-touch collections process, electronic client billing and paying, and a billing schedule that ensures a steady cash flow throughout the month. As a … [Read more...] about Louisiana firm sets up four sure-pay systems
To see better profits, look harder at where money starts and ends
Profit doesn't happen without a prod. Particularly in a tight financial environment, a firm has to know where its money is coming in and going out. It also "has to be nimble and on top of what's going on," because the supply, the demand, and the acceptable price of legal work is constantly changing, says Bob Henderson, of RJH Consulting, a business consulting group for small … [Read more...] about To see better profits, look harder at where money starts and ends
What’s overshadowing your partnerʼs big revenues?
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?
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