Law firm competitiveness is more than the efficacy of attorney representation. Optimization of accounts receivables on the ledger with measured benchmark reporting enhance law firm financial control that might otherwise be compromised by outstanding billing collections. When it comes to crunching numbers, firmTRAK Accounting offers attorney practices the law firm key performance indicators (KPIs) they require to enhance profitability.
Of the measured KPIs essential for the strategic financial management of law firms, WIP turnover is one of the most applied in the financial control process. WIP turnover is a benchmark estimate of a firm’s cost of capital correspondent to the number of days of outstanding accounts. A firm’s WIP turnover “inventory” is calculated by deducting any unbilled account contingencies or transactions to be paid on closing from the total account, divided by the number of days. The sum of those outstanding accounts is then divided by the average revenue generated per day to reach the WIP turnover.
firmTRAK Law Firm Metrics
Law firm profitability begins with benchmark reporting. Our law firm metric solutions report WIP turnover and other financial analysis to accounting. With firmTRAK Accounting a practice can improve its financial outlook with metric reporting of outstanding billing and collections. firmTRAK Accounting law firm metrics provide firms the KPIs they require to compete more effectively in the marketplace.