Key Performance Indicators (KPIs) provide valuable data law firms can use to make strategic business decisions, evaluate trends and determine opportunities for growth[1]. There are many metrics law firms can track, but the following are the most critical. FINANCIAL & OPERATIONAL These KPIs can give you insight into the firm’s financial health: Revenue billed by […]

Ethics violations can result in sanctions and even being disbarred for lawyers, so it’s important to be aware of the most common ways lawyers wind up in trouble with their bar association. Conflicts of Interest Lawyers should run conflict checks for not just their current clients[1], but also look to check: Concurrent representation of clients […]

Bad debt can take up a significant portion of a firm’s income. While it can be challenging to avoid bad debt entirely, law firms can minimize its likelihood by doing the following: Be upfront with pricing Make sure from the start that your client is aware of what the payment amounts will be. If you […]

Collecting past due payments can be time-consuming for lawyers. There are various routes to take when a client simply won’t pay their bills, but the recommended course of action is to try to collect outside of court if possible[1]. To start, lawyers can write a payment demand or collection letter to the client outlining the […]

There are two methods law firms can run their accounting by: accrual basis or cash basis. The primary difference between the two is the point at which revenue is realized. In cash basis accounting, revenue is recognized once the payment is received. In accrual basis accounting, revenue is realized when the sale is made even […]

Setting your rates is a combination of multiple factors including: Geography Experience Firm size Specialization/type of case Reputation Look at what others in your area are charging, and assess the type of setting you’re in. Rates in large cities will be larger than those in suburban or rural areas. See what others nearby are charging […]

For law firms who are unsure of whether they should hire a virtual paralegal, there are some key questions to consider during the decision-making process. Do I have more work to get done than I can handle? If you’re finding yourself coming close to missing deadlines because of an overwhelming workload but aren’t prepared to […]

Running a successful law firm requires satisfied clients. To offer an even more impactful and positive customer experience, consider implementing a few “value added” factors that go beyond the practice of the law. Although some ways to add value do have costs associated with them, firms don’t always need to spend funds or valuable time […]

Law firms can look at profitability, or how much the firm has earned after expenses have been taken out of total revenue, in a number of ways. The overall profitability should always be assessed, along with breakdowns by practice area, by matter and attorney. Many practice management programs that integrate with accounting software can easily […]

A paperless law office offers reduced costs, increased collaboration and higher levels of security, but to make the switch firms should execute a three-part plan. Part 1: Planning Planning the transition sets the foundation for how the change will be implemented and puts the entire firm on the same page. It also sets clear expectations […]