So You Think You Are Profitable: 10 Ways to Assess Your Law Firm’s Cash Flow
How do you assess how you are really doing? You need to look at much more than just billable hours. The key is cash flow management: You must understand what monies are coming into your practice, and where money is flowing out. Most modern law office accounting systems can give you reports that will give you a much better understanding of the cash flow of your practice. On a monthly basis, you should review the following ten reports from your accounting system:
#1 – Overall and projected monthly billings: What are your overall monthly billings, measured against your projected billings? . . . [more]
