The difference between cash-based and accrual-based accounting is one of timing.[1][2]In a cash-based accounting system, a law firm records income when it’s received and expenses when they are paid. In an accrual-based accounting system, a law firm records income when earned (invoiced) and expenses when incurred (upon receipt of the bill from the vendor). This […]

A hard cost, also known as a direct cost, is one that is paid directly to a vendor on behalf of a client for services provided in association with a specific client matter. Hard costs typically include court reporter fees, filing fees, mediation fees, hearing transcript fees, etc. Good law firm practice management, through the […]

Law school curriculum doesn’t cover what it takes to run a profitable law office. To be successful, you have to look at running your practice like running any business, which means putting some key tactics into place and focusing on data to make business decisions. In this guide, we’ll cover what they don’t teach you […]

In the legal industry, a firm’s accounts payable is more than just the bills your office owes.  Part of being an attorney is acting as the fiduciary for clients. For an attorney, this means that they may have responsibility for certain client debts. If anything is to go wrong, or these financials are not properly […]

Managing a law firm means running a business. It doesn’t mean that a law firm can be managed the same way as any other business. The ways a law firm can track productivity and build compensation models differ from that of traditional businesses. The Complexities of Managing a Law Firm Before understanding how law firms […]