Cash and accrual basis accounting are both methods for recording law firm transactions. The most significant difference between cash and accrual basis of accounting is how the transactions are logged.  Choosing an accounting method is crucial for any business, helping ensure accurate financial reporting and enabling better decision-making. Effective law firm accounting, which includes adopting […]

State Bar Rules dictate how law firms should manage client funds, and when lawyers inadvertently or purposely mix client funds with personal or business ones, it is known as commingling. Rules on managing client funds vary by state. Most jurisdictions require attorneys to keep client funds separate from their own. However, some states allow you […]

Digital marketing costs for lawyers have increased in recent years, due to more competition between law firms for cost-per-click advertising and stricter data privacy laws. Today, the average law firm spends $500 to $2,000 to acquire one new client.   To ensure a profitable bottom line, it’s in a law firm’s best interest to retain more […]

There’s nothing like a confusing invoice or a complicated payment process to take the shine off great work. Yet for many law firms, billing frustrations are commonplace.  Consider that a 2023 Thomson Reuters survey reports that the average law firm has an 18% realization loss because of billing-related issues. Or that according to the same […]

Successful law firms work to enhance productivity and profitability while delivering exceptional client service. Tracking and optimizing utilization rates is a significant help in this effort. What is utilization in the legal industry? Utilization means looking at how much of your working day is spent doing things that directly bring in money. Billable hours are […]

Maintaining a robust online presence helps your law firm increase brand awareness and attract clients. A well-crafted professional website serves as your virtual storefront, giving potential clients their first impression of your firm.  Your website must communicate your firm’s expertise, services, and impact through high-quality content. Effective law firm website content will engage visitors, build […]

Think of your law firm’s website like a digital front door. It needs to get the attention of potential clients, make a positive first impression, and provide useful information that sets you apart from your competitors.    But if you’re a small firm or solo practitioner, getting a new, professional website off the ground may be […]

Properly managing IOLTA accounts is crucial to maintaining ethical standards and complying with legal requirements. However, the complexities and variations in IOLTA regulations can present significant challenges, particularly for solo practitioners and small law firms. Streamlining IOLTA trust account management is essential for regulatory compliance. It also frees up valuable time to focus on core […]

General ledger accounting is the cornerstone of effective financial management for law firms, ensuring compliance and securing financial health. Mastery of this fundamental practice not only guarantees accuracy but also enhances the overall efficiency of your firm. Understanding the purpose of a general ledger, common mistakes to avoid, and best practices for proper reporting can […]

Someone once said, “The secret of change is to focus all of your energy not on fighting the old but on building the new.”  While this is undoubtedly good advice for life, it’s also a nugget of wisdom that legal professionals can benefit from when evaluating their payment practices in 2024.  If your firm has […]