It’s tax time! Well, not really. But, it is time to start planning for end-of-the-year moves that will impact how much you pay in taxes at the beginning of 2004. Consider some the discussed here before the end of the year is on top of you. (more…)
One topic very few law firms, small or large, ever discuss with associates is why and how they can/should be profitable.
When I was practicing as an associate, I had a conversation with the managing partner. The subject of profits and billing came up, though I don’t remember how or why. I showed him what percentage my billings were of the firm; I showed him what my expense to the firm was. (Most of these numbers were available at that time; they may be more difficult to get today.) And I showed him what my “profit” to the firm was (though I had no clue about the realization rate of my billings by the firm). (more…)
Marketing tips of the day:
- It’s not who you know that counts, it’s who knows you!
- The secret to success is contained in the formula of the 3 F’s: Follow-up; Follow-up; and follow-up! Persistence does pay dividends.
- Trust is built in small increments, not any single event. Thus, doing what you say you will do is essential to building and maintaining that
With less than 3 months remaining in 2004, there are tax benefits that may impact your buying decisions.
Law firms can deduct the purchase price of technology equipment acquired for use in 2004.
Amended IRC Section 179 provides for a new limitation of $100,000 instead of the old limitation of $25,000. This provision also applies to off-the-shelf software. The opportunity is limited to 2004, while reverting back to the old limits after this year.
Check with your tax adviser or the Internal Revenue Service for more details.
With rising malpractice insurance premiums, what can we do to keep our costs as low as possible?
Shop the carriers. But, this will go only so far because all carriers are facing the same issues of rising costs from earlier poor underwriting judgements, increased litigation against lawyers and a generally poor investment market.
What is in the control of law firms, however, which will help control this cost? Good client selection and good client relations policies! Here are some specific suggestions.
Be choosy. Select clients who can afford to pay for the services they request. (more…)
For those of you who want to see other web logs (BLOGS) in the business/marketing context, take a look at Business Blog Consulting. It’s a great site and I just learned of it.
Did you know that banks will, as of on or about November 1st, convert their paper check system to an electronic system? If my understanding is correct, vendors will be paid (e.g., by a paper check); they will then convert the check into an electronic transaction and either keep, return or, most likely, destroy the paper check. (more…)
Most lawyers’ billings are “features” billings. This is what I did and these are the days I worked and this is what you owe me. Billings, in my opinion, get you better results when you prepare a “value” billing. What are the results of your effort for the client.
Sometimes that’s not possible, for example, when you bill for a telephone call to set up an appointment. Other times, it’s obvious such as when you have a negotiating conference call with opposing counsel — what did the client get for your effort? (more…)
Selling a law practice has been prohibited for decades. Times are changing! California has permitted such sales since 1989. The American Bar Association altered its opposition in 1991. Since then, other states have changed their prohibitions. The legal profession is taking one more step toward recognizing the economic realities of modern professional life. (more…)