The simple, yet scary answer is yes. And there’s a good chance that you don’t even
know about it. According to the 2018
Report on the State of the Legal Market by Thomson Reuters, “the current level of billable worked hours per month is some 13
total hours below the level at the beginning of 2007 (just before the onset of
the Great Recession). That represents a total of 156 billable worked hours per year.”
Simply stated, lawyers are billing an average of 156 work
hours less than a decade ago. If you
take the average billing work hours missed and multiply it by the average
hourly amount billed ($245 average), then you’ll see that it’s costing firms
$38,220 per lawyer per year in profitability.
Some firms are operating with a false sense of things going
well, yet they are missing out on profits that could make the firm go from
surviving to thriving. To see if this
applies to your firm, simply multiply the number of attorneys in your firm by
$38,200. This represents the potential
that you may be missing out on. Is this
a significant amount that could help boost the bottom line?
If so, then understanding your utilization ratio on both an office level and billable employee level is crucial. The utilization ratio is the difference between the number of hours an employee works vs the number of billable hours that employee produces.
The problem is having that knowledge readily at hand so that
your firm can make decisions to positively impact utilization and drive
profitability. FirmTRAK was designed to solve this problem (and many
Our Productivity Panel outlines hours worked versus hours billed versus hours collected on an office and per employee level. From this, you can determine the profitability of each employee’s time.
Here’s a video overview of this feature:
FirmTRAK will sit on top of your
current practice management system to automate reporting and analysis of key
performance indicators that will help drive the success and growth of your law
firm. No more spreadsheets to analyze using a team of people. The
information is instantly configured and available at your fingertips.
Matters are tracked according to the time and overall activity.
Attorneys can work from remote
locations and FirmTRAK will be able to make sure that the time spent working
remotely is effectively tracked and recorded.
You went to law school to follow
your passion for helping people with their legal needs, not to become a business
analyst. That’s where we come in.
We are so confident that FirmTRAK can help
your firm, that we are offering you a FREE 7-day trial of our program.
Please click here to register for
your FREE 7-day trial today.
The post Is your firm losing out on $38,220 per lawyer per year in profitability? appeared first on firmTRAK.