As profitability is reflected by your cash-flow, it is crucial to be able to monitor it accurately to avoid being in the red. Delayed (or incorrect) bill production and credit control compromise the health of your cash flow and consequently the profitability of your practice.
This is why legal accounting software is one of the most important systems that a law firm should use. This is the ‘’window’’ towards your firm’s financial health that should allow you, beside performing basic accounting tasks, to understand what makes or breaks the success of your business.
So here are a few criteria to employ when looking to upgrade or replace your current legal accounts software.
1. Can the software be integrated into a case management system?
The two chief benefits of having these two work areas ‘’communicating’’ are (i) reduced workload and (ii) combined intelligence reports.
2. Can you get all the information you need?
Your accounting system should provide you with all the reports that your management needs to be able to track the performance of fee earners and the profitability of the practice, in real-time.
3. Is your legal accounts software compliant with current legislation?
The last thing you need is to be caught off guard so the software supplier should assist your accounting staff to operate to current regulations.
Use a product that is compliant with the Law Society’s stipulations and the Legal Services Commission (LSC) requirements among others.
The most recent white paper from DPS Software presents and analyses these criteria in depth and offers you a practical understanding of what these key features imply. The white paper also quotes the results of recent studies highlighting the business side of a law firm and the views expressed by industry members, all supporting the idea that a firm’s management cannot afford to ‘’lose touch with their money.’’
’The ‘Golden Age’ of easily achievable double digit organic growth is over’’ note Jomati Consultants and a series of UK and US industry experts in their recent book ‘’Targeting Profitability: Strategies to Improve Law Firm Performance’’.
Rigorous examination of existing business processes, performance and structures is needed to be able to achieve the same growth level as before the crisis. So make sure that your current or future legal accounts package is offering your law firm what it needs.
For a bit of extra guidance through the selection process of such a system download the free document from DPS—> http://info.dpssoftware.co.uk/legal-accounts-software