LAW PRACTICE MANAGEMENT: Hot Topics and Current Practices
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Transcript LAW PRACTICE MANAGEMENT: Hot Topics and Current Practices
Materials Prepared by
Cheryl Betten
Presented by Carol L. Schlein
Newark NJ February 22, 2013
Managing Legal Costs
Attorney Compensation
Direct Expenses (Staff Compensation)
Indirect Expenses such as
Rent and Utilities
Office Supplies
Information Systems
Professional Fees
Research and Subscriptions
Carol L. Schlein, Esq.
President, Law Office Systems, Inc.
[email protected] www.losinc.com
Montclair NJ
Founding Member Lawtopia LLC
www.lawtopia.net
National partnership of legal technology consultants
Former chair Computer Division,
ABA Law Practice Management Section
Former columnist, New Jersey Law Journal
‘’’
Budget Your Revenue & Expenses
Calculate estimated revenue
Estimated Revenue = Billable Hours * Rate * # of
Timekeepers
Make sure all lawyers are meeting baseline
expectations
Track Your Expenses
Negotiate better rates
Streamline processes
Use Firm Admin to manage finances
instead of practicing attorneys
Identify Money Makers
Benchmarking- compare your firm to other firms with
goal of improving your own business practices
Negotiate with your vendors for the best deals
Shop around for services
Put systems in place to track costs and bill them out
where appropriate
Automate where possible
Eliminate Money Wasters
Don’t waste money on bad advertising
or a bad marketing plan
Make sure your marketing plan is focused
Turnover – “there are plenty more where that one
came from” is a bad HR strategy and will cost your firm
Don’t sign long term leases. Technology changes too
fast.
Maximize 80/20 Rule
20% of your clients are responsible for majority of your
revenue – make sure they are happy
20% of your employees are billing 80% of the hours –
make sure they are rewarded
Learn from both
Find more lucrative clients
Find ways to motivate employees
Case Budgeting
Conferring with your Client
Budgets for cases often happen
when lawyer least familiar with
facts and players
Communicate with client when
budget changes
Be Audit-Minded
Work with a CPA or Accounting Firm to ensure
compliance with payroll taxes, income taxes, trust
funds
Audit-minded professionals will create audit trail and
ensure reliable financial reporting
Avoid problems with random audits
Have system of checks and balances
Billing and Collections
Fee/ Engagement Agreements
Outlines services your firm will perform
Details Fee arrangement
Hourly/ Flat/ Contingent
Retainer required?
Frequency of billing
Interest or late fees?
Detail of billing (itemize)
Types and costs for services charged
Rates for each timekeeper level
No “air-tight” fee agreement but can prevent disputes
Tracking Work and Time Spent
Factors to Consider in Selecting
How many timekeepers in the firm?
Will they enter their own time?
Do you want the system to also track accounting?
Standalone or network?
What’s your budget?
What other programs share similar data?
Popular Timekeeping/
Billing Programs
Timeslips
PCLaw
Time Matters/ Billing Matters
Tabs3
Clio
RocketMatter
Strategies for Pursuing Fees Owed
Be Proactive
Start with Written fee agreement
Adhere to the agreed terms
Follow up within 30 days
Determine if firm will or can sever relationship
Use systematic process to demand payment
Follow collection laws
Fee Arbitration process
Considerations to Sue a Client
Can your firm handle claim through the courts?
Will number of suits impact your malpractice
coverage?
How much is owed?
What is the risk of a retaliation law suit?
Will judgment be collectable if obtained?
Outsource Your Collections
Consider using third-party vendor
Do your homework about vendor before proceeding
Negotiate the fee with collection vendor
Ask for trial period
Compare pricing
Understand difference between agency and collection
law firm
Ask for detailed list of process flow
Choose a company or firm that understands your
business