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Top 6 Essential Reports for Your Law Firm
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1. Identifying common areas where you can save time and create better outcomes.
2. Tips to easily create workflows for your practice.
3. Get measurable results when you implement these strategies.
What’s more, an effective and comprehensive practice management solution will even deliver you rich business insights to let the data do the talking.
To keep your law firm running efficiently, making informed decisions is crucial—whether it’s determining the most effective strategy for a client’s legal matter or identifying areas where your firm can reduce expenses. And for those decisions to truly be informed, you need accurate and relevant data.
You don’t have to collect that data manually, though. (Besides, what lawyer has time for that?) Nor do you need an extensive tech stack to access it.
From financial reports to client data, Rocket Matter’s robust reporting software provides you with accessible, digestible information that you need to know to make the right data-driven decisions for your law firm. (And even better, you can access these reports from within Rocket Matter’s Essential Tier!)
Run the reports that matter for your law firm
You may know how to navigate legal matters like the back of your hand, but how well do you truly understand the ins and outs of your business?
With advanced reporting software, you can gain valuable insights into where your law firm stands at a glance. For example, you can:
1. Identify billable activity by users
It’s helpful to see a bird’s eye view of your finances when assessing the overall profitability of your law firm—and it’s also helpful when you can take a closer look at that revenue. When you’re able to see billable activity by users, you can get an idea of how much each individual attorney at your firm is billing. This is especially important if you need to meet certain billable hour thresholds.
This can also help you see whether each attorney on your team is meeting productivity metrics, or if certain work needs to be delegated or outsourced. These reports also come in handy if you’re hoping to implement attorney bonuses informed by billable hours.
2. Check what your firm is owed
Knowing what your firm is owed is important on a number of levels. First and foremost, it lets you understand where you stand in terms of cash flow and collection rates. Are you getting paid quickly and in full but still finding yourself low on profitability? Or do you have multiple outstanding invoices affecting your firm’s accounts receivable?
If you’ve completed and invoiced for a significant amount of billable work but have yet to be paid, this impacts other operational elements of your business. After all, you have employees to pay and other overhead costs to cover.
By regularly reviewing information about outstanding invoices, you can identify and address any issues regarding your law firm’s cash flow. For example, do your payment policies need some clarification across the board or is it time to reconsider your relationships with certain clients?
12 Legal Payment Processing Features to Look For
Want to see a healthier cash flow and happier clients? Start accepting payments online! On your quest for the right payment processor, look for features that streamline and support the way law firms operate.
3. View what you’ve been paid per client
Looking to assess whether different types of clients are profitable? Just look at what you’ve been paid per client. For example, if your firm is struggling with high AR, you can look at where payments are coming in—and where they aren’t.
Knowing what your firm is owed and which invoices have yet to be paid also helps you to gain a better understanding of which clients and matter types are profitable—and which might need some adjusting. If you have clients that are repeatedly behind on their bills, you may determine that they’re not the right fit for your firm. Alternatively, you may want to reconsider the fee structure you’re using to make it more affordable for your clients, such as switching to a flat rate or offering payment plans.
4. Get the big-picture perspective of all your firm’s legal matters
When you can see all your firm’s matters in one place, it provides a valuable high-level picture of your business as a whole. This can help you make planning decisions based on a number of factors, such as case volume by matter type. If you’re handling a larger number of cases in a particular practice area, for example, you can ensure you have sufficient resources to provide high-quality client service.
You can also review this report to better understand your cash flow by seeing pending invoicing (unbilled activity) and the total balance of operating ledgers. Filter matters by the attorney, matter status, or currency to quickly access insights into productivity, profitability, and more.
5. Check in on trust account transactions
Trust accounting is a critical component of any law firm. If not handled correctly, it poses major compliance risks. Trust accounting reports can help with that, though.
Consider the following uses of trust accounting reports:
- Identify which trust account balances need to be replenished
- Request retainers
- Adjust for deposits and transfers
- Make trust account balances evergreen
Because Rocket Matter is designed to be convenient and user-friendly at every tier, law firms can handle these tasks directly from within reports!
6. Assess payments toward invoices
Reports that show you a comprehensive view of all of your paid and unpaid invoices are helpful when it comes to understanding the status of different client accounts, keeping an eye on cash flow, and taking proactive steps when payments are falling behind. For example, you may need to mitigate payment issues by coming up with a different payment plan for certain clients.
If you notice a trend in certain types of invoices not being paid, this can also give you insight into any troubleshooting you may need to do. For example, do your invoices provide sufficient clarity on payment policies? If not, consider refreshing the language so your clients can more easily understand how to settle a bill.
Take your firm to new heights with Rocket Matter
When you take advantage of key reporting within Rocket Matter’s Essential Tier, you get critical information to drive smart business decisions for your law firm, along with productivity-boosting tools like:
- Time and billing
- Customizable invoices
- Trust Accounting
- Task management
- Calendars
- Rocket Matter Pay
- Conflict checking
- And more!
All within a single, easy-to-use program. If you’re ready to see where Rocket Matter can take your law firm, schedule a demo or start a free trial today.
More useful posts:
12 Legal Payment Processing Features to Look For
Want to see a healthier cash flow and happier clients? Start accepting payments online! On your quest for the right payment processor, look for features that streamline and support the way law firms operate.
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