Press "Enter" to skip to content

Law Profitability and Economics: How the Two Meet In the Middle and Become One

Introduction

Becoming a fine and top-notch financial lawyer Israel is not just about money, though some do make it about the money. Some also believe that law firms make it more about the ratings than they do about the people.

Clients want value in the law firm they hire. They want to spend less and get a higher return on their investment. That type of planning takes a very specific skill that you can only get through the study of economics.

 

“You need to understand the data that your law firm intercepts and reads daily. You need to monitor the billable hours carefully and ask the hard questions. Are you getting high or low billable hours? Do they increase or decrease depending on the number of clients you speak with on any given month?”

To understand this more, there is a list of things you need to be looking at when going through your law firm’s data. The goal is to become more informed as a business and when dealing with your clients.

1) What is your attorney’s total compensation for each month, including things like taxes and the support staff? The total needs to include everything allocated to each lawyer. Your law firm may employ of the better financial lawyer Israel has to offer, but what happens when they are not bringing home the money they should?

2) The cash each lawyer brings in needs to exceed the expenses paid out.

What does that mean?

You could have a lawyer bringing in $4 million in their work, but they pay out over $5 million in expenses. That is costing you a lot in business every month, especially if that happens on a regular basis. Hiring a lawyer who is skilled in economics can reduce the chances of that happening more often.

Law Firm Benefits

1) You are creating more value when you hire a lawyer with an economic background.

2) You cover the costs in the proper way. You are no longer paying out more money than you should in a wasteful way.

3) You are assuming any risks that come your way properly. Risks need to be covered if your law firm is going to be successful. Your law firm needs to reevaluate things when your profit and loss statements assume more risk than they do profit.

4) Making money is a good thing. Your profit and loss statements need to add up. A lawyer who has a background in economics knows how to make your bottom line better.

Read More News at Storify News

Please follow and like us:
0

Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Scroll Up