Maine Law Practice Management

Law  firm  revenue usually has an ebb & flow to it, especially when you talk about firms that rely on hourly billing.    Most attorneys would probably say that their revenue is pretty unpredictable.     The only problem with  that thesis is that  it’s  not entirely true .   Law firms can  design  some assumptions about  what  they’ll  make  by  utilizing  revenue projections .   Compare that to historical data, and  you’re  bound to find trends (and,  likely, seasonality ), a s well as  recurring themes around how and when you make money.   And, you  don’t  have to do it on your own .   If you  utilize  an accountant, bookkeeper, or (fractional) chief financial officer (CFO), you can ask that person to develop ‘cashflow projections’ for  you ;  and,  you can do that on an annual basis , at the start of every ne...

Nothing bottlenecks law firm case process (and progress) as much as waiting  for your  clients  to do things .     Law firms can  largely control  internal policies & tasks;  and,  courts  utilize  definable deadlines .   But,  when law firms  request  that clients do things  . . . good luck !   They’ll  straight up ignore you .   They’ll  obfuscate .   They’ll  waste your time, by  getting back to you   another issue,  entirely .    In  sum , they mostly  won’t  give you w hat  you want, unless you stay on them.   The question then becomes: How do you do that?     The answer is consistent follow - ups .   Now, lots of law firms employ workflows;  but,  not a lot of law firms  follow - up  on client requests ,  in an aggressive fashion .   The good new...

Managing a ccounts receivable is all about timing; and so, you  can’t  view it simply as a lump sum that you are owed .   Ideally,  you’re  running and reviewing  aged  accounts receivable  reports  – which most bookkeepers will do as a matter of course  @ 30-day, 60- day  and 90-day+ intervals .    That will give you a sense about a lot of  things,  related to the  financial management  of your business, including how your cashflow projects, on a go-forward basis.     But, most importantly,  you’ll  get a sense of how those dollars escalate in your law practice .   That escalation, of course, needs to be matched by your collection process .   When clients  don’t  pay you, as they should: you  can’t  just watch the dollars  st ack up .   You need to meet that escalating mountain of cash, with a more aggressive collection pro...