How do I determine my law firm’s profitability?

CosmoLex Team

Law firms can look at profitability, or how much the firm has earned after expenses have been taken out of total revenue, in a number of ways. The overall profitability should always be assessed, along with breakdowns by practice area, by matter and attorney. Many practice management programs that integrate with accounting software can easily show you these numbers. However, … Read More

How do I get a paperless law office?

CosmoLex Team

A paperless law office offers reduced costs, increased collaboration and higher levels of security, but to make the switch firms should execute a three-part plan. Part 1: Planning Planning the transition sets the foundation for how the change will be implemented and puts the entire firm on the same page. It also sets clear expectations about what the process will … Read More

What steps do I need to take when hiring an employee?

CosmoLex Team

Because hiring an employee can be an intimidating and complicated process, it is best to break the process into smaller, more manageable steps as follows: Analyze your firm’s needs for an employee[1]: Do you need a part-time or full time assistance? Would you be able to fill your needs with an independent contractor instead? Can you afford to pay for … Read More

What steps must you take to find employees?

CosmoLex Team

Having the right employees can make all the difference in your firm’s success, lightening the load for everyone when you can depend on them to deliver quality, timely work and provide top-level customer service. Finding the right employee is no small feat, but taking the time to make the best hire is a much better strategic business choice than hiring … Read More

How can I secure communications with my clients?

CosmoLex Team

When you communicate with a client by email, , through , by cell phone, through a phone system, or by , your communication passes through the Internet – a made up of many different devices controlled by many different companies and organizations.[1] Using a public network increases the risk that a third party can access your communications since you don’t have … Read More

Why should I create an employee handbook?

CosmoLex Team

Employee handbooks aren’t a requirement in many states, but having one is something firms of every size should consider. Meant to address policies, procedures, guidelines, and working requirements, employee handbooks can be a cornerstone document for any company. Having one to refer back to makes it easier on everyone, including the employees who have something to reference and the managers … Read More

How do I run a conflicts of interest check?

CosmoLex Team

Attorneys have an obligation to avoid situations in which they will have a conflict of interest such as[1]: Concurrent representation of clients with adverse interests Successive representation of clients with adverse interests Conflicts resulting from lawyer’s receipt of confidential information outside attorney-client relationship Conflicts resulting from lawyer’s relationships with non-clients Professional Liability insurance companies, such as ALPS, recommend that law … Read More

How do I develop a pay, benefit, and incentive package?

CosmoLex Team

When considering a job offer, many applicants take into consideration the pay, benefits, and incentives offered by a firm before making a decision. A generous package can help sway potential employees as well as keep existing ones at the firm, but it’s important to find a balance between the three offerings to meet the needs of both the firm and … Read More

How long does it take a check to clear the bank?

CosmoLex Team

A check clears when the money from the check writer’s bank account is actually moved into the account where the check was deposited.[1] Because it can take as long as several weeks for a check to clear, federal laws require banks to make funds available for withdrawal before a check has actually cleared.[1] But, if the check fails to clear, … Read More

What does the trial balance tell us about the company’s finances that the balance sheet doesn’t?

CosmoLex Team

The balance sheet[1]shows only those general ledger accounts that track the law firm’s assets, liabilities, and equity as of a specific date. The trial balance shows all general ledger accounts on one page, with the accounts that increase when debited shown on the left side and the accounts that increase when credited on the right side.[2] The total amount of … Read More