Practice Alchemy Blog

This is the final post of our five-part series on working capital management. First there was a brief introduction to working capital management. Then, we talked about why cash is king. And most recently, we discussed the implications of having an efficient billing and collections process as well as a proper vendor strategy. The final piece of the working capital puzzle involves credit cards and other types of debt, which can include the following: Short-term…
The United States is home to 443,565 law firms that collectively generated $330 billion in revenues during 2019 alone. With so much money on the line and aggressive competition for similar casework, it’s surprising that some firms continue to lack structure around their clients’ different lifecycle stages, a foundation that can further optimize operational efficiency and fuel future growth. This neglect is often due to a mish-mash of business operations in place and attorneys who…
  Consider for a moment how you maintain your car. Are you the type that sticks to the recommended regular maintenance schedule, or do you only address vehicle health when given a sign such as a warning light, a weird sound, or a change in drivability? If the former, then you’ve come to appreciate that the cost of waiting to address a failed component can be far more expensive than having taken preventative measures along…
We’re now in the back half of our five-part series on working capital management. First there was a brief introduction to working capital management. Then, we talked about why cash is king. And most recently, we discussed the implications of having an efficient billing and collections process. So without further ado, we will ask again: do you have a sense of how long it takes for your firm to complete the following…
Demystifying Bookkeeping The month of February is for celebrating love, our nation’s presidents, and… demystifying bookkeeping? Maybe that last part doesn’t exactly fit into February, but in the spirit of being slightly contrarian, we wanted to share some concepts with our loyal readers that might help demystify bookkeeping. While our posts on working capital management tend to have a more serious tone, we are hoping you’ll enjoy this lighter take on bookkeeping.…
  How do you know if your firm is being managed properly? Maybe we should take a step even further back and ask a question that surprisingly doesn’t have an easy answer … What IS law firm management? On the one hand, management seems daunting. After all, people get MBAs and large corporations have entire management structures in place. But of course, we don’t want something that heavy. On the other hand, law practice owners…
Do you have a sense of how long it takes for your firm to complete the following tasks? Determine the correct amount to bill a client Create an invoice and send to the client Collect the money you are owed from the client If you know how long it takes, that’s a great first step. Beyond knowing how long it takes, do you know how you can improve the process? Make it more efficient? Reduce…
Do you have a handle on all your cash accounts? How about every dollar that comes in or goes out? Are you earning any return on your excess cash? If these questions are important to you, you’ve come to the right place. In our last post, we provided an introduction to working capital management for the savvy and inquisitive law firm leader. This is the next in a series of posts meant to uncover…
As an attorney and a leader, wouldn’t it be useful to have a tool that allows you to assess the health of your firm on a regular basis? Fortunately, accomplishing this is not as opaque as it may seem. The term “working capital” gets thrown around a lot in the business world, along with similar terms such as “working capital management” and “net working capital.” These words can be confusing to someone who’s not well…