When you start a small law firm, often-times you’re more interested and focused on practicing law (you’re a lawyer after-all!) rather than the business side of running a law firm.
It’s no surprise, then, that you find it difficult to manage all aspects of practicing law and running your business – especially when it comes to firm finances. One area in particular that can be problematic is knowing how to measure the financial health of your practice and knowing what metrics to pay attention to in order to enhance your levels of profitability.
Wouldn’t it be great to easily identify which clients and practice areas are yielding the greatest profits without having to look at complicated spreadsheets and manipulate all kinds of tedious data? Moreover, how helpful would it be to keep closer tabs on the accounts lagging behind in payments in order to better focus your collection efforts?
It’s now easier than ever to track the financial health and profitability of your law firm with Firm Central’s Enhanced Reporting.
Key Metrics At Your Fingertips
As user-friendly as it is attractive, the new reporting dashboard gives you a quick and easy-to-understand visualization of many of your most important performance indicators. You can now see the big picture of everything from your overall revenue to your most profitable clients, all in one easy place.
Under a quick year-to-date summary of your financials, there are a series of helpful widgets that break down your most important indicators of profitability. In all, Firm Central provides you with eight different widgets that present a snapshot of your firm’s financial performance. These include:
- Revenue – the total revenue you’ve invoiced and collected so far this year
- Current Work in Progress – the total value of the time that has been recorded for ongoing matters but not yet billed
- Billed – the total amount invoiced year-to-date
- Collected – the amount of your invoiced total that has already been paid year-to-date
- Revenue Year to Date – the firm’s total revenue for the current year, separated out by month
- Aging Accounts Receivable – the amounts you have outstanding, broken out by how long they’ve been outstanding (not limited to the current year)
- Top Clients by Revenue – presents your firm’s top ten clients based on revenue over the last 365 days (includes both collected and outstanding amounts)
- Revenue by Practice Area – a year-to-date breakdown of your total revenue by individual practice area
It’s All In The Reports
In addition to the visual information you get from the widgets, Firm Central now allows you to run detailed reports on nearly every aspect of your firm’s profitability for a more in-depth analysis. In all, there are currently 10 different time and billing reports that you can run, with more to be added in the future.
Just by clicking “Run,” the reports are pulled up instantaneously on your screen – no need to export to a different program or wait for data to be pulled in from other sources. Better yet, the reports are entirely customizable to suit your individual needs – easily expand, shrink, hide columns, sort and select data. You can even change font styles, colors and sizes.
If you do decide to export the data, your firm’s logo and address will appear at the top for a professional presentation with expanded delivery options, including Word, Excel, PowerPoint, PDF and formats that can be easily embedded into websites, all with a simple click.
Double Down On Your Success
Do you confidently know which practice areas and clients are bringing in the most money to the firm? For example, are you investing marketing dollars and firm resources on practice areas that may not be paying off as much as they should? Utilize the dashboard metrics to recognize business trends so you can double down your efforts on and reallocate your business development and marketing resources where they will make the biggest impact.
At the end of the day, law firms are businesses and profitability is crucial to survival. Firm Central’s Enhanced Reporting gives you a simple way to identify business trends, top clients, and top practice areas, allowing you to maximize your marketing dollars and target the work that will help grow your firm. By having a better way to keep an eye on your accounts receivable, you can stay on top of collections issues and make sure you’re taking the best actions to get paid for the work you’ve done. Real-time metrics also allow you to make better decisions on staffing and set business goals that make financial sense.
Start enhancing your firm’s profitability today with Enhanced Reporting by Firm Central.