All businesses, including law firms, use three reports to analyze their financial position – the [simple_tooltip content=’A statement of the assets, liabilities, and capital of a business or other organization at a particular point in time, detailing the balance of income and expenditure over the preceding period.’]balance sheet[/simple_tooltip], the [simple_tooltip content=’Financial statement that shows how […]

A [simple_tooltip content=’A disaster recovery plan (DRP) is a documented, structured approach with instructions for responding to unplanned incidents. This step-by-step plan consists of the precautions to minimize the effects of a disaster so the organization can continue to operate or quickly resume mission-critical functions.’]disaster recovery plan[/simple_tooltip] (a “DRP”) must be flexible enough to address […]

Many law firms believe that they do not need a [simple_tooltip content=’A disaster recovery plan (DRP) is a documented, structured approach with instructions for responding to unplanned incidents. This step-by-step plan consists of the precautions to minimize the effects of a disaster so the organization can continue to operate or quickly resume mission-critical functions.’]disaster recovery […]

Can I use a general accounting program like QuickBooks for timekeeping? Many general accounting programs like QuickBooks allow companies to track the time each attorney spends billable activities for a given client.[1][2][3] You can then use the time entries to generate an invoice.[5][6][7][8] References 1. Time Tracking Invoices in QuickBooks 2. Tracking Time in QuickBooks […]

There are two types of reimbursable costs, [simple_tooltip content=’Soft costs typically are associated with nontangible items, such as project management, taxes and legal fees.’]soft costs[/simple_tooltip] and [simple_tooltip content=’Hard costs is a disbursement you pay directly to a vendor on behalf of a client. A hard cost would be for items such as filing fees, court […]

Since legal invoices are communications between lawyers and clients that may reveal an attorney’s strategy or legal advice, some states consider them to be privileged. [1][2][3] Therefore, law firms should check with their state bar association to determine what they need to do when emailing privileged information to clients, as those requirements could apply to emailed […]

A business plan is a road map for the first three to five years of a law firm’s existence.[1] It is an important business management tool as it allows your law firm to develop a strategy for making a profit before you even open your firm.[2] If you intend to ask for outside financing, banks […]

Opening a law practice can be challenging for an attorney. Many attorneys don’t have business degrees and have never run a business in the past, so it can be overwhelming for them to know where to start when opening a law firm. The following is a high-level overview of the steps to take when opening […]

Many general accounting programs can generate identical invoices for multiple clients at one time through a process called [simple_tooltip content=’Batch invoicing allows you to create a single invoice for multiple customers reducing. the time and effort you spend it is the perfect solution for businesses that invoice groups of customers regularly.’]batch invoicing[/simple_tooltip].[1][2] This is different […]

Law firms, like most businesses, are created to generate a profit for the partners.[1] Generating revenue alone does not guarantee that firm will earn a profit because businesses only generate profits when their revenues exceed expenditures.[2] The “[simple_tooltip content=’The break-even point (BEP) represents the sales amount—in either unit (quantity) or revenue (sales) terms—that is required […]