MONEY & FINANCE
Billing by the hour means that your supply of “product” is limited by the clock and calendar. Review the resources below to build a profitable practice.
Time, Billing, & Accounting
The end result of quality legal representation is collecting a fee from your client. If clients don’t pay you, the business won’t survive. All attorneys should understand the value of time tracking (even if you bill only flat fees or work on contingency), billing, and accounting for legal organizations.
The majority of private-practice attorneys bill by the hour or 1/10ths of an hour. Even legal organizations that work on contingency or flat fees should track time to know whether their days go. Understanding time entry, billing, and accounting are necessary evils in the legal profession. No one taught you these concepts in law school, but you should learn them. They will benefit the efficient and profitable functioning of your practice.
Trust accounting is a major potential pitfall for legal organizations. Treat it right and follow your ethical and legal obligations. Trust is a major component of trust accounting. Do the right thing, treat your clients’ money properly, and stay out of trouble.
Productivity & Reporting
The biggest advantage of timely and accurately recording your activities, beyond easy invoicing and prompt payment, is that you amass a wealth of information that you can analyze to see how well your organization is functioning as a profit-making entity. Can your accounting program produce useful reports to make the right business decisions?
Analyzing the data that your practice management and accounting programs produce is the best method of determining if your organization and team are both productive and profitable. Can the software you use produce the reports you need.