year-end review for law firms
TRANSCRIPT
#ClioWeb
Year-End Review for Law Firms
A Clio Webinar with Joshua Lenon – Clio
Peggy Gruenke – LegalBizSuccess
#ClioWeb
Instructors
• Joshua Lenon – New York-admitted
attorney – Lawyer in Residence at
Clio
• Peggy Gruenke – Founder,
LegalBizSuccess – Legal Technology
Consultant – Technology Chair for
the ABA GP Solo/Small Firm Division
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Agenda
• 4 Year-End Projects (45 minutes) – Cases – Clients – Finances – Yourself
• Questions (10 minutes)
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It’s%a%busy%*me%of%year.%%We%just%want%to%give%you%a%few%things%to%focus%on.%Just%pick%one%or%two%and%relax%and%enjoy.%
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Your%cases%Your%clients%Your%finances%Yourself%
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YEAR-END REVIEW: CASES
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CASES • How%many%new%cases%did%you%get%in%2014,%by%prac*ce%area?%
• What%cases%were%more%profitable?%
• Did%you%hit%any%home%runs%–%have%that%one%big%case?%
• What%cases%did%you%enjoy%working%on%the%most?%
• What%case%was%your%biggest%headache?%
• Who%referred%you%the%most%and%best%cases?%
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CASES Asking%yourself%these%ques*ons%will%help%you%look%back%and%reveal%the%some%strengths%and%weaknesses%in%your%business.%%%
What%can%you%do%over%the%next%few%weeks%to%*dy%up%your%cases%for%2014%and%start%2015%out%on%a%solid%founda*on?%
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CASES
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Run%an%open%maOer%report%and%review%it%to%see%if%any%of%these%cases%are%complete%and%have%an%open%balance%owed.%
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CASES - Closed
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CASES
TIP:%To%make%this%process%more%efficient,%use%a%task%system%to%assign%and%track%each%step%and%create%a%document%automa*on%process%to%generate%the%leOers.%
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CASES - Closed If%the%client%owes%money,%remind%them%in%your%leOer%and%create%a%followRup%task%to%check%on%payment%status%during%the%first%week%of%January.%%
TIP:%If%the%amount%due%is%beyond%180%days,%the%chances%of%collec*ng%100%%of%this%is%slim%and%none.%So%go%ahead%and%offer%to%discount%the%bill%in%hope%they%will%pay%before%yearRend.%%%Here%is%a%unique%approach%to%dealing%with%these%aging%accounts:%in%the%leOer,%ask%them%to%send%an%amount%they%feel%they%can%afford%or%represents%the%value%they%received.%
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CASES
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When%is%it%too%late%to%send%a%closure/end%of%case/thank%you%leOer?%%
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CASES
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Review%the%status%of%all%your%ac6ve%cases%%
TIP:%Learn%how%to%use%Clio%cascading%tasks%and%set%up%a%series%of%tasks%so%you%can%stay%on%top%of%these%cases.%
• Record%notes%in%a%place%you%will%remember%• Check%court%dates%%• Are%court%holidays%on%your%firm%calendar%
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CASES
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Priori*ze%your%open%maOers%
Do%you%have%too%few%open%cases?%%%
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Clients – Who were you best clients in 2014?
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What%does%a%best%client%look%like?%
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YEAR-END REVIEW: CLIENTS
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Clients
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Find%a%way%to%capture%this%client%ra*ng%in%your%database.%
Clio’s%custom%fields%are%a%great%tool%for%capturing%this%data.%%
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Current Clients They%are%your%source%of%income.%%Do%something%memorable.%
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Clients For%estate%planning%clients,%the%holidays%are%the%*me%of%year%when%children%are%ge^ng%engaged%and%they%will%have%the%need%to%update%their%estate%planning%documents.%%%%Using%your%nicely%organized%client%database,%run%a%list%of%estate%planning%clients%who%have%children%around%the%age%of%“ge^ng%married.”%In%their%leOers,%include%a%note%about%your%services%for%young%couples%and%a%reminder%they%will%need%to%update%their%estate%plan%documents.%
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Clients – Organize your database
Capture%more%data%
Learn%how%to%use%Clio%Custom%Fields%
Use%Clio%Custom%Fields%
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YEAR-END REVIEW: FINANCES
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Finances 1. Accounts%Receivable%2. Review%Trust%Accounts%3. Review%2014%actual%and%budget%revenue%and%expenses%
4. Prepare%for%tax%season%%
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Finances: Run the accounts receivable report and spend time on collections
Looking%at%this%past%due%invoice%report,%there%may%be%another%“oh%crap”%moment%but%also%a%sense%of%hope.%%%This%money,%if%collected,%could%be%in%your%next%paycheck%before%yearRend%and%the%holiday%spending%season.%
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Finances • On%ac*ve%cases,%bill%every%two%
weeks%in%December%%• You%are%a%small%business%
owner%• Your%clients%should%
understand%and%respect%the%fact%that%you%are%being%proac*ve%and%working%on%your%business’%yearRend%
TIP%
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Finances: Review what is in Trust This%is%a%great%*me%of%year%to%make%sure%you%have%been%diligent%about%moving%money%from%your%trust%account%to%opera*ng%account%as%fees%were%earned.%%%It%also%great%*me%to%make%sure%all%of%your%client%ledgers%are%in%balance.%%
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Finances: Review 2014 revenue, expenses and budget
Firm%financial%tracker%spreadsheet%%• Actual%prior%year%revenue/expense%• Current%year%budget%revenue/expense%• Actual%current%year%numbers%by%month%%• Current%YTD%actual%compared%to%YTD%budget%%• Opening%and%ending%check%account%balance%• Profit/loss%by%month%(which%is%different%than%the%checking%account%balance)%
• Accounts%receivable%each%month%
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Finances: Review 2014 revenue, expenses and budget
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Where%do%these%numbers%come%from?%
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Finances: One additional number to review Collection Realization Rate
• Ge^ng%the%work%(selling%your%product%–%yes,%you%are%a%salesperson)%• Doing%the%work%(building%the%product)%• Ge^ng%paid%for%the%work%(collec*ng%the%money)%
The%financial%health%of%your%law%firm%is%ul*mately%dependent%on%three%simple%concepts:%
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What%is%a%good%collec*on%realiza*on%rate?%%
90%%
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Finances: One additional number to review Collection Realization Rate
So%what%is%this%number%telling%you?%
• Bills%not%ge^ng%out%the%door%on%a%regular%schedule%• Bills%going%out%incorrectly%• Bad%collec*on%prac*ces%• Dissa*sfied%clients%because%bills%were%late,%incorrect%or%poor%client%management%
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Finances: One additional number to review Collection Realization Rate
How%can%you%improve%this%number?%%
• Create%a%firm%wide%rule%to%request%and%collect%an%adequate%advance%fee%deposit%for%every%case.%%
• Get%beOer%at%case/client%selec*on%and%listen%to%your%gut%• Really%look%at%what%prac*ce%areas%are%most%profitable%and%which%ones%
are%having%a%nega*ve%impact%on%collec*on%realiza*on%• Make%sure%your%wriOen%fee%agreement%details%your%expecta*ons%of%
payment,%as%well%as%what%will%happen%if%payment%isn’t%received%*mely%• Bill%*mely%and%prepare%bills%that%are%easy%to%read%• Develop,%follow%and%delegate%a%collec*ons%policy%that%goes%into%effect%
immediately%when%an%account%first%becomes%pastRdue%
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Finances
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Finances – Travel expenses not to be forgotten
• Travel%to%court%• Networking%events%• Travel%to%clients%• Delivery%documents%
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YEAR-END REVIEW: YOURSELF
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Yourself Yourself%
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Yourself
44
• Shop%with%the%kids%• Lunch%with%a%friend%• Date%with%your%spouse/
significant%other%• Family%date%night%%
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Get Re-energized A%lot%of%you%are%solo%aOorneys.%You%work%from%home.%You%make%your%own%schedule.%%Get%out,%take%a%deep%breath%and%feel%the%energy%of%being%out%and%about.%%
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Find some alone time
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If you have all of this under control…
• Go through your list of clients and find ones to ask to write a review
• Look at what processes you could automate in 2015
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QUESTIONS
