As an immigration lawyer, you know that profitability is the key to your law firm’s success. However, too many lawyers simply look at their revenue, and when a lot is coming in, they assume their practice is profitable when that is not always the case. Even when revenues increase, a law firm may still not be profitable if their overhead costs and other expenses increase significantly. If you are looking to really increase your law firm’s profitability, below are 10 tips that can help.
Make Every Job Count
You are a busy lawyer, and you only have a certain amount of time and energy every day. Still, lawyers sometimes spend time on jobs another person in the firm could do. Unless you are performing a job that only you can complete, or that you really enjoy, delegate it to junior associates, paralegals, and even to your technology solutions so you have more time to focus on the work that will drive the forward motion of your business.
Invest in Legal Technology
Legal technology is an immense help in increasing your law firm profitability. Cloud-based software and other types of technology will streamline your operations and make it easier to bill clients and collect payments on those invoices.
Automate Certain Processes
It has been shown that on average, lawyers spend only 2.3 hours a day on billable work. Automation processes can free up much more time for attorneys so they can spend the majority of their time on work that is billable, which also makes them better able to serve their clients.
Set SMART Goals
SMART goals are those that are specific, measurable, achievable, relevant, and time-bound. It is important to focus on these goals rather than just a vague, overall goal to increase law firm profitability.
Track Key Metrics
You cannot know where you are going if you do not know where you have been. Track important metrics such as your firm’s utilization rate, realization rate, and the collection rate. Regularly compare these with prior months to see where your law firm stands.
Maintain a Healthy Cash Flow
Cash flow is essential to any law firm. To maintain a healthy cash flow, consider cutting back on expenses, following up on invoices that have gone unpaid, and placing payment options on your website.
Offer Better Payment Options
A great way to increase law firm profitably, and your firm’s cash flow, is to offer better payment options to your clients. Set up credit card and electronic payments, consider other payment structures, or set up payment plans with your clients.
Track All Billable Hours
Lawyers are notorious for failing to track all billable hours and invoice for them efficiently and effectively. Make sure the lawyers within your firm are tracking all billable hours to increase revenue and your law firm’s profit.
Too many lawyers leave money on the table by billing for work, but never following up with collection efforts. Accepting payments on your firm’s website is a great way to streamline collections for those overdue invoices.
Use a Client-Centered Approach
In his book, The Client-Centered Law Firm, Jack Newton explains how using a client-centered approach goes hand-in-hand with increasing law firm profitability. This is essentially satisfying your clients and providing them with a positive experience. When you do good legal work, your clients will come back and will refer you to others, which will increase your firm’s profitability.
Our Immigration Law Software Will Maximize Your Time and Profitability
Technology is a big part of increasing law firm profitability, and our immigration workflow automation system is integral to your firm’s success. At FastVisa, we have created software that will streamline your operations and boost your profits. Contact us online today to request a demo and to learn more about our technology.