Back in 2005, a technology survey done by the American Bar Association shows that 41% of attorneys in 2 to 9 lawyer firms and 53% of lawyers in firms with 10 to 49 attorneys, used time and billing software.
Why is this a big deal? Well, if you don’t capture your time:
- You will fail to collect all earned revenue,
- Profitability will be skewed because you did not account for all the costs associated with generating the revenue, and/or
- Hidden costs among administrative staff involved in processing and tracking billable hours may increase.
These are real problems within small law firms. AND IN OTHER FIRMS TOO.
Many small architectural, engineering, consulting, accounting and other firms do not track hours with discipline. Some charge a recurring or fixed fee and as long as the bills are paid, they don’t worry about it. These professional are fixated on “count the $$ in my wallet,” an attitude essential in the start-up phase. Of course, cash flow is critical but so is other management information. It is the difference between treating your professional firm like a hobby business or street vendor business and like a solid concern you want to be stable and growing.
Think about this the next time you talk to a client or a prospect. It is never too late for them to use technology for its maximum benefits to their firm.
