Analysing fee income, fee—earning capacity and fees per fee earner—blank

The following Practice Management precedent provides comprehensive and up to date legal information covering:

  • Analysing fee income, fee—earning capacity and fees per fee earner—blank

Analysing fee income, fee—earning capacity and fees per fee earner—blank

There is little point in collecting data on a firm's financial performance if that data is not used to improve its performance. A firm’s fee income, fee-earning capacity and fees per fee earner are all useful indicators of its current financial performance. This precedent can be used to analyse these indicators and to undertake a modelling exercise to understand the potential financial impact if any of the current variable figures change.

To complete this analysing and modelling exercise you need to follow a three–step process:

  1. step 1—calculate key variables

  2. step 2—calculate and analyse the firms current fee income, fee-earning capacity and fees per fee earner

  3. step 3—undertake a modelling  exercise to understand the potential financial impact of adjusting any of the variables

This precedent will assist with steps 2 and 3. It should be used in conjunction with precedent: Variable calculations, which will assist with step 1 of this process.

Please click for an Excel version of this precedent. In this version each worksheet has auto-calculation formulae embedded within it meaning you only need to enter the raw data into the relevant cells/columns and the result will be calculated for you. You will also find separate illustrative worksheets within this spreadsheet showing a worked example of how to calculate fee income, fee-earning capacity and fees per fee

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