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Category Archives: Cash Flow – Finances

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7 Easy Steps to Getting Paid

Posted in Cash Flow - Finances, Uncategorized
You’ve worked hard to address the challenges brought to you by your client.  You’ve put other matters aside to deal with his or her crisis.  You‘ve achieved their desired results.  And now, they’ve become a slow payer or non-payer.  Why?  What could you have done to prevent this, to know from the very beginning that … Continue Reading

Are you cheating yourself?

Posted in Cash Flow - Finances, Coaching, Management
The business cycle consists of three elements:  marketing to get the new client and retain the old client; production to produce and deliver the legal service, advice and/or documents; and finance to collect your billings and operate your firm.  The first two tend to be the focus of most lawyers.  Billings and collections tend to … Continue Reading

Baseball

Posted in Cash Flow - Finances, Management, Personal Thoughts
In yesterday’s news, the Oakland A’s (the best team at this point of the season) announced trades that brought them 2 outstanding pitchers. Why did they do this? After reading Moneyball, you will know why. Teams’ trade activities highlight the two seasons of baseball, the first that will end in a few days and the … Continue Reading

Retirement at different times

Posted in Cash Flow - Finances
In Life After Law: What Will You Do for the Next 6,000 Days? I focused on the options available to the lawyer in the last phase of his / her career and how to prepare for a profitable exit strategy.  What I did not address, however, is the lawyer whose spouse is working and may … Continue Reading

MyCase adds to its integration

Posted in Cash Flow - Finances, Management
MyCase legal practice management software has announced an integration with the popular accounting software QuickBooks. This is an important integration, as it allows law firms to have full synchronicity between their practice management and accounting software systems. The integration comes at no additional cost to MyCase customers. For at least 15 years, I have been preaching "integration" … Continue Reading

Pricing contract lawyers

Posted in Cash Flow - Finances, Management
Are contract lawyers an expense or a fee item?  This issue has been litigated before and, according to my reading, has been resolved in favor of the law firm. The law firm is entitled to engage contract or temporary lawyers for one price and charge the client a higher price. One rationale for this is … Continue Reading

Collecting Your Fee is still the key

Posted in Cash Flow - Finances, Marketing
Georgetown Law School’s Center for the Study of the Legal Profession recently suggested that earlier realization rates of 92% have gone down to a historic low of 85%. That means for every dollar billed, the law firm is collecting only 85 cents. My suspicion is that these numbers are reflective of "Big Law," and not … Continue Reading

Lawyers for sale

Posted in Cash Flow - Finances, Management, Marketing
In today’s Wall Street Journal, the writer suggests that high priced lawyers are for sale, that is, that clients are pushing back and demanding lower fees irrespective of the stated hourly rates of their lawyers. The reporter’s perspective is skewed only to the larger law firms, “Big Law.”  Small firm and sole practitioners have always … Continue Reading

IOLTA changes

Posted in Cash Flow - Finances
Reminder note:  IOLTA protection has changed as of January 1st … Be sure you review your clients’ trust account to confirm that your accounts are in balance and that they are below the maximum now protected.  There no longer is unlimited protection … and that means that you may be personally liable for a bank … Continue Reading

IOLTA accounts may be in jeopardy

Posted in Cash Flow - Finances
Under current law, clients’ trust accounts are protected under the IOLTA program. The FDIC provides unlimited insurance coverage. However, unless extended by Congress, beginning January 1, 2013, such unlimited coverage will terminate and the new limit will once again be $250,000 per depositor. All funds held in such trust accounts as well as all funds … Continue Reading

Prices come down! Do sales go up?

Posted in Cash Flow - Finances
Echoing an earlier comment I made about the decreasing salaries for first year graduates,  NALP  recently said the decrease is 35%!  This further promotes change in the profession, from additional hiring, to out-sourcing, to independent contracting … and much more… Continue Reading

Public Justice versus Private Judges

Posted in Cash Flow - Finances
Justice should be free. However, the State of California has just cut the budget of its court system by more than $500 million!  Litigants will be left to fend for themselves.  One blogger suggests that private judges are not expensive when comparing the speed of justice in a private matter with the delays and increased … Continue Reading

Legal fees are high – according to whom?

Posted in Cash Flow - Finances, Management
In today’s Wall Street Journal,  staff writer, Jacqueline Palank discusses the Justice Department’s attempt to control fees that bankruptcy lawyers seek. Creditors and employees may, at times, be a bit disgruntled by such fees. So, now, the U.S. Trustee Program appears to be entering the fray. Before going further, it should be noted that i) … Continue Reading