The simple, yet scary answer is yes. And there’s a good chance that you don’t even know about it. According to the 2018 Report on the State of the Legal Market by Thomson Reuters, “the current level of billable worked hours per month is some 13 total hours below the level at the beginning of 2007 (just before the onset of the Great Recession). That represents a total of 156 billable worked hours per year.”
Simply stated, lawyers are billing an average of 156 work hours less than a decade ago. If you take the average billing work hours missed and multiply it by the average hourly amount billed ($245 average), then you’ll see that it’s costing firms $38,220 per lawyer per year in profitability.
Some firms are operating with a false sense of things going well, yet they are missing out on profits that could make the firm go from surviving to thriving. To see if this applies to your firm, simply multiply the number of attorneys in your firm by $38,200. This represents the potential that you may be missing out on. Is this a significant amount that could help boost the bottom line?
If so, then understanding your utilization ratio on both an office level and billable employee level is crucial. The utilization ratio is the difference between the number of hours an employee works vs the number of billable hours that employee produces.
The problem is having that knowledge readily at hand so that your firm can make decisions to positively impact utilization and drive profitability. FirmTRAK was designed to solve this problem (and many more).
Our Productivity Panel outlines hours worked versus hours billed versus hours collected on an office and per employee level. From this, you can determine the profitability of each employee’s time.
Here’s a video overview of this feature:
FirmTRAK will sit on top of your current practice management system to automate reporting and analysis of key performance indicators that will help drive the success and growth of your law firm. No more spreadsheets to analyze using a team of people. The information is instantly configured and available at your fingertips. Matters are tracked according to the time and overall activity.
Attorneys can work from remote locations and FirmTRAK will be able to make sure that the time spent working remotely is effectively tracked and recorded.
You went to law school to follow your passion for helping people with their legal needs, not to become a business analyst. That’s where we come in.
We are so confident that FirmTRAK can help your firm, that we are offering you a FREE 7-day trial of our program. Please click here to register for your FREE 7-day trial today.