Accounting Data Lead Source for KPIs
Expert CPAs and financial controllers can turn financial analysis of accounting records into a viable data set for purposes of measuring firm performance alongside industry benchmark standards. Metric key performance indicators or “KPIs” are a priority for any law firm seeking to build capacity over time. For instance, analytic reporting of a firm’s cost of capital also estimates the length of time outstanding accounts are owed. Accounting is perhaps the single most important source used by law firms for capturing KPIs. With firmTRAK accounting software application as a service, consolidation of a law firm’s financial operations enhances the strategic planning process similar to big law firm competitors.
Avoiding “Garbage In, Garbage Out” Errors
Forecasting requires reliable historical data to determine the frequency and probability of performance by a firm by way of regression analysis, notably recognized as a “trend”. The same holds for the reporting of accounting data for use in strategic forecasting of a firm’s AR, revenues, and outstanding debts. The concept “garbage in, garbage out” then, is relevant for understanding the obstacles a firm may face when attempting to capture reliable KPIs.
Historic Accounting Record, Future Forecast
Moreover, accounting offers the best source for the forecasting scenario, as the fundamental calculus (i.e., algebra and statistics) required for financial analysis is at the base of profitability estimates and other key data parts of financial reporting. While profitability is obviously a key priority for any firm no matter the size, the budgeting, costing, and financial reporting analytics all part of the firm’s accounting record, provide robust insights about the process-related performance factors impacting a firm as well. firmTRAK permits a law firm to integrate accounting records, including invoices, trust ledgers, AR, bank reconciliations, and billing schedules.
Boost Law Firm Competitiveness
Law firm competitiveness can be put at risk by outstanding billing remittances. KPIs reflecting the activity of accounts receivables on the ledger, assists a firm in its evaluation of the solvency of its operations. Measured benchmark reporting provides an overview of a law firm’s financial control of outstanding billing collections. firmTRAK accounting metrics offer the option of accounting system integration and consolidation, with continuously up-to-date account reconciliation.
Key performance indicators are benchmark reporting solutions for the strategic financial control of competitive attorney practices and their billing and collection accounts on record. TRAK Law Firm Metrics by firmTRAK is a comprehensive analytics environment for billing and financial control of a firm. We offer law firm client subscribers PracticePanther integration with CLIO withaccounting software, Xero, and Quickbooks Online for optimal operations tracking. firmTRAK law firm metrics reflect consolidation of data relevant to the accounting for lawyers, accounting for law firms, and trust accounting analytics and reporting seen across the industry.