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?
Billing & collections
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
To-Dos: Your January checklist
Make a fresh start this year with a focused team, a financial plan, organized files, and a decluttered computer. Here are some tasks you can accomplish this month to help keep your office running smoothly and profitably throughout the year. 1. Help staff set and achieve goals. Addressing staff issues in January gets people charged up for the year and gives you a roadmap for … [Read more...] about To-Dos: Your January checklist
Clients cite their top 6 turnoff points with law firms
Don't jeopardize repeat business by unwittingly antagonizing the clients. Keeping them satisfied is a worthwhile investment. Lose one client and you have to work twice as hard to find someone else. An Illinois firm developed a list of client turn-offs after it conducted a series of client satisfaction surveys. The firm began its research informally with one-on-one discussions … [Read more...] about Clients cite their top 6 turnoff points with law firms
Dear newly hired law firm: Here’s what I really want
By Robert Denney bio What would it be like to be on the receiving end of an engagement letter after accepting a new client? While they may not actually put any of this to you in writing, it is very likely your new client has a few of the expectations set out in this letter. LETTER FROM A CLIENT TO ITS NEW LAW FIRM Today's Date Responsible Partner Our New … [Read more...] about Dear newly hired law firm: Here’s what I really want
Establishing an effective pricing policy in your law firm
As law firms evolve, tracking key metrics and producing top-tier results are absolutely necessary, and new methodologies and thought processes have begun to play key roles in rationalizing, monitoring, controlling and setting strategic pricing. This information can change the profitability structure of your law firm, says Brenda Barnes, certified public accountant (CPA) and … [Read more...] about Establishing an effective pricing policy in your law firm
The top five reasons firms lose money and go out of business
"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
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