Collection rate is defined as the revenue you actually collect into your operating bank account divided by the total amount invoiced. Typical collection rates for law firms are around 85%, but they vary markedly by firm. Increasing your collection rate is a great way to earn more without actually doing any additional work.
Dan Lear was recently interviewed by Mark Homer of legal marketing firm GNGF. Dan and Mark dove into many different topics including:
- Company culture
- A $70,000 minimum wage
- The Gravity Legal platform
- Law firm finance
- Alternative fee structures
- Expectations of the modern consumer of legal services
Written By Devon Thurtle Anderson, CEO of Financial Consulting Firm, Skepsis
When I first left my law practice to become a law firm bookkeeper and financial strategist, I was shocked to discover how many law firms struggle with cashflow. Even more surprising was that this struggle isn’t just limited to a few seemingly rag-tag solo general practice firms. To the contrary, when I had a chance to look under the hood at dozens of law firms’ books and financial records – including law firms I had always seen as hugely successful – I learned that almost every law firm has a cashflow problem within any given 12-month period. So, as part of my bookkeeping and consulting services, I set out to change that.
In this episode of Clio Matters, Dan discusses different ways firms are navigating the new remote work environment. He lists helpful technology resources and tells us whose ideas he's leaning on amidst the chaos (Nate Silver and RJon Robins of How to Manage a Small Law Firm to name a few).
We get nerdy this episode talking accounting, trust accounting, and regulatory jazz with Lainie Hammond. Lainie runs a law firm in Washington State helping lawyers with issues related to IOLTA trust account compliance.