How to Reduce Overhead in Law Firms Archives

Think You’re Underpaid? Get Real Before You Leap

2019-03-21T19:24:39+00:00By Debra L. Bruce, JD, PCC.|Comments Off on Think You’re Underpaid? Get Real Before You Leap

An in-house lawyer (let’s call her Sara) contacted me about helping her design a business plan for starting up her own law firm. I commended Sara’s wisdom in creating a business plan before leaving her corporate job. Surprisingly few lawyers actually do that. She explained that she needed the business plan in order to get a bank to lend her operating capital. While I silently questioned how realistic her expectations were, I asked how much she intended to borrow. She said, “I only need enough to cover my living expenses for a couple of months. Just until the money starts coming in.” […]

Trimming Expenses to Fatten the Kitty

2007-02-22T12:37:43+00:00By Debra L. Bruce, JD, PCC.|Comments Off on Trimming Expenses to Fatten the Kitty

Recently I have been getting a number of questions about reducing overhead in law firms, so this article will give you some tips. For a strong first step, get a clear picture of the existing expenses, and determine which of them are necessities, and which are luxuries.

Review and Investigate the Firm Financial Reports

Do you review your firm’s monthly financial reports? Do you really know what the specific numbers on your financial statement represent? Are there some categories that fluctuate pretty dramatically from month to month or year to year? If so, that might indicate some discretionary spending items, and it may be worthwhile to review the expenditures represented by those numbers. It may be appropriate to develop some approval procedures within those categories. Establish a budget and follow-up on over-expenditures to get a real handle on expenses.

By investigating the facts underlying financial reports, lawyers I know have discovered seriously overdue accounts receivable, employees using firm services and accounts for personal purposes, courier services used daily for routine non-urgent transmissions, unnecessary equipment service contracts for nonessential or infrequently used equipment, infrequently used season tickets, and downright embezzlement. (Lawyers are rather common victims of embezzlement.) Some of those expenditures sound deminimus, but with frequent repetition, they add up.

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Think You’re Underpaid? Get Real Before You Leap

Trimming Expenses to Fatten the Kitty

Make an Appointment

Setting goals for your life and career?

Setting goals for
your life and career?