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

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 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

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

Why do employees embezzle from their employers?

CosmoLex Team

Employees embezzle company funds for a variety of reasons[1][2] such as: They think that their employer wronged them somehow, e.g. passed them up for a promotion, or treated them unfairly, etc. They think that they are not being compensated fairly for the services they provide to the employer. They think that the theft won’t hurt the employer because the employer … Read More

What is the purpose of a balance sheet?

CosmoLex Team

All businesses, including law firms, use three reports to analyze their financial position – the , the , and .[1][2] The purpose of the balance sheet is to capture the law firm’s financial position at a specific instance of time and is used to evaluate the firm’s financial health.[2] The balance sheet shows all of the law firm’s and as … Read More

What goes into a law firm's disaster recovery plan?

CosmoLex Team

A (a “DRP”) must be flexible enough to address all sorts of disasters that can affect a law firm’s ability to function whether it affects IT infrastructure only, IT infrastructure and the physical premises, the ability of key personnel to provide services to the firm, or the safety of physical premises when occupied by firm personnel.[1] The ABA and most … Read More