Law firms are matter-oriented. They share many of the same issues as an accounting company. Again, BillQuick Online is a matter-centric software that meets or exceeds all their expectations.
A ‘matter’ is a project typically billed on an hourly basis plus expenses. You can do some type of work on a contingency basis (paid when you win a case) plus expenses.
Usually, you review work-in-progress before billing. The fuzzy factor is an issue here as well. Exclusions, write-offs, no-charge and net bill adjustments are common billing decisions, along with discounts and retainers.
Many law firms require a retainer up-front. The retainer can be for any work done for a client or can be specific to a matter. You can apply retainers to bills while generating invoice to reduce the amount due, or apply as a payment to an outstanding invoice. After a matter is completed, typically you refund any retainer balance to the client. Depending on the nature of the matter and the state laws, you can combine the retainer with other retainers in a general bank account (co-mingled funds) or can require a separate account. In some situations, the separate account can be a special ‘trust’ account, with legal and regulatory requirements and liabilities.
Like CPAs, partners and managers in a law firm watch the ‘realization rate’ metric very closely. Depending on the firm, you can measure it for WIP, after billing (billed revenue) or after collection (after write-off of invoiced amounts). Another metric they watch closely is ‘production’ or ‘billable time’ per attorney. You can review it as hours or bill value against a goal (hours x bill rate). Typically, you measure production against formal or informal goals. Increasingly, you monitor profitability by client, matter, manager and staff. Comparison of realization rate, production and profitability among attorneys and law firms is common.
As a law firm grows, compensation reporting becomes more important. Compensation (direct, bonus) can be based on pre-billed revenues (production), billed revenues (what was invoiced) or collections (invoice amounts paid by the client). You can compute amounts for one or more of the following:
Client rainmaker (who brought a client into the firm)
Matter rainmaker (who brought immediate work into the firm)
Attorneys performing the work
Paralegals and others involved in a matter
Compensation formulas can be highly specific to a firm’s management structure, negotiated partnership agreement and general management style.
Keeping all these concerns as the driving force behind the success and popularity of BillQuick Online, it provides various solutions and features that enhance the overall productivity and profitability of your business concern—whether you are an architectural, engineering, IT, accounting or any other professional services firm.
You would agree that there are some critical concerns of executives in any industry. BillQuick Online addresses all those concerns: