The Five Pillars of Law Practice Management
Since they entered law school, not many attorneys have had extensive business management courses or training, and that’s a really unfortunate fact for those looking to run their own practice or become a managing partner of a small law firm. For attorneys who decide to hang their shingle and run their own firm, practice management is an extremely important, if not often overlooked, aspect of what they will be doing. Even the best attorney in the courtroom runs the risk of sinking their entire practice if they don’t understand how to effectively manage their business.
Effectively managing a law firm isn’t simply about understanding the different areas of the business, but understanding how these different areas are connected and work together. When attorneys fail to maintain a strong understanding of how these different areas of a practice work together, their business is at risk of losing decisions in the courtroom, losing revenue, and even falling out of compliance with regulations.
The Five Pillars of Legal Practice Management
Over a decade of working closely with solo and small practice attorneys has allowed our experts at CosmoLex to identify five key areas that each law practice must vigilantly maintain in order to be successful. Here, we will break down these five key areas, which we call the Five Pillars of Legal Practice Management, so you may build your practice on a strong foundation and strive for continued growth — focusing less on business management and more on the practice of law.
This five pillars that we will discuss in detail throughout this whitepaper are:
- Legal Time & Billing
- Business Accounting
- Trust Accounting (IOLTA)
- Event & Task Management
- Document & Email
What many law firms often fail to realize is how interdependent these different areas of their business are. It’s not enough to stand on one of these pillars and hope for the best. Every law practice is different. What’s right for the firm down the road may not be the best solution for you. With the variety of practice management solutions available to the market today, it’s more important than ever to do your research and find the system for you. Process each of the pillars and consider how they fit into place at your law firm.