Improving financial performance

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This subtopic contains information and guidance on improving the financial performance of a law firm. It covers:

  1. •

    how to predict fee income and an appropriate level of overheads for budgeting—see Practice Note: Predicting fee income and expenditure

  2. •

    the importance of good time recording and assessing time recording methods across the firm—see Practice Note: The importance of good time recording

  3. •

    planning work to improve efficiency and meet client expectations on costs—see Practice Note: Delivering client services more efficiently

  4. •

    the importance of having, and acting on, good management information—see Practice Note: The importance of good management information

  5. •

    why the financial awareness of your staff is important and how it can be improved—see Practice Note: Raising the financial awareness of your staff

Predicting fee income and expenditure

Like any other business, a law firm needs some budgets each year so:

  1. •

    it can properly control its income and expenditure, and, as a result

  2. •

    reduce the risk of the final profit not being in line with expectations

It is worrying how many firms do not have budgets and when challenged the

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