key issues in effective profitability...
TRANSCRIPT
May 22-25, 2016 Los Angeles Convention Center Los Angeles, California
Key Issues in Effective
Profitability Enhancement
Presented by
John G. Iezzi, CPA
FM12
5/23/2016
1:45 PM - 3:15 PM
The handouts and presentations attached are copyright and trademark
protected and provided for individual use only.
1
NATIONAL CONVENTION
ASSOCIATION OF LEGAL ADMINISTRATORS
KEY ISSUES IN EFFECTIVE
PROFITABILITY ENHANCEMENT
JOHN G. IEZZI, CPA
IEZZI MANAGEMENT GROUP
LOS ANGELES, CA
MAY 24, 2016
FINANCIAL PLAN (BUDGET)
HOW CLIENTS ARE CHARGED
CASH FLOW
MEASURING PERFORMANCE
QUESTIONS AND ANSWERS
2
SET REALISTIC NET INCOME EXPECTATIONS
DEVELOP YOUR OWN NICHE
BILL FOR WHAT WAS PRODUCED; NOT HOW LONG IT TOOK TO PRODUCE IT
MANAGE TECHNOLOGY
DON’T GET PREOCCUPIED WITH EXPENSES
AVOID FULL TIME HIRING
CLIENTS
RIGHT MIX OF ATTORNYS
ADEQUATE BILLING RATES
REASONABLE BILLABLE HOUR LEVELS
REALISTIC EXPENSE BASE
PROPER FINANCIAL MANAGEMENT
3
CLIENT BASED
CASE BASED
ORDERS A LOT OF WHAT LAW FIRM IS SELLING
PAYS THEIR BILLS IN FULL
PAYS THEIR BILLS ON TIME
4
RECORD BILLABLE HOURS AT STANDARD RATES
EXAMINE DEVIATIONS FROM STANDARD RATES
BILL AND COLLECT ON A TIMELY BASIS
CONTROL EXPENSES
CONSTANTLY MONITOR CASH FLOW
5
RATE REALIZATION – DIFFERENCE BETWEEN STANDARD HOURLY RATE AND RATE ACTUALLY AGREED TO CHARGE (NOT BILL) CLIENT. HISTORICALLY, RATE IS IN THE 92-94% RANGE.
BILLING REALIZATION – COMMONLY REFERRED TO AS “WRITE-UPS OR WRITE-DOWNS”. HISTORICALLY, RATE IS IN THE 94-96% RANGE.
CASH REALIZATION – RELATIONSHIP OF CASH RECEIPTS AGAINST THE STANDARD VALUE OF BILLING TIME. EXPECTATION IS AROUND 80%.
SHSDBUDGETMODEL2015
REALANALYEX
TRACKING REALIZATION ANALYSIS-EXAMPLE
RATE REALIZATION (OR RATE VARIANCE)
ATTORNEY A
STANDARD HOUR RATE 350.00
RATE CHARGED IN T/K SYSTEM 325.00
TOTAL BILLABLE HOURS 50.0
VALUE OF TIME IN T/K SYSTEM 16250.00
STANDARD VALUE OF TIME 17500.00
RATE REALIZATION 0.93
BILLING REALIZATION
AMOUNT IN WORK IN PROCESS 16250.00
ACTUALLY BILLED TO CLIENT 15000.00
BILLING REALIZATION 0.92
CASH REALIZATION
STANDARD VALUE OF TIME 17500.00
CASH ACTUALLY RECEIVED 13500.00
CASH REALIZATION RATE 0.77
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PFFINFORALAMAY2016
TKREALRATECHT
REALIZATION RATE ANALYSIS
ASSOC A
BILLABLE HOURS 1420.2
HOURLY RATE 300
STANDARD VALUE 426,060
ACTUAL VALUE 396,496
RATE REALIZATION % 93.1
STANDARD VALUE 426,060
RECEIPTS 348,612
CASH REALIZATION RATE 81.8
PFFINFORALAMAY2016
TKREALRATECHT
REALIZATION RATE ANALYSIS
ASSOC A ASSOC B
BILLABLE HOURS 1420.2 1584.5
HOURLY RATE 300 300
STANDARD VALUE 426,060 475,350
ACTUAL VALUE 396,496 386,434
RATE REALIZATION % 93.1 81.3
STANDARD VALUE 426,060 475,350
RECEIPTS 348,612 292,584
CASH REALIZATION RATE 81.8 61.6
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PFFINFORALAMAY2016
TKREALRATECHT
REALIZATION RATE ANALYSIS
ASSOC A ASSOC B
BILLABLE HOURS 1420.2 1584.5
HOURLY RATE 300 300
STANDARD VALUE 426,060 475,350
ACTUAL VALUE 396,496 386,434
RATE REALIZATION % 93.1 81.3
STANDARD VALUE 426,060 475,350
RECEIPTS 348,612 292,584
CASH REALIZATION RATE 81.8 61.6
ACTUAL PROFIT (-LOSS) 104,257 48,229
PFFINFORALA102707
ASSUMP
ABC LAW FIRM, PC
GROSS INCOME BUDGET
FOR THE YEAR ENDING 12/31/YY
SHAREHOLDERS:
NUMBER 8.0
AVG RATE 250.00
AVG HOURS 1,350
TOTAL HOURS 10,800
TOTAL VALUE 2,700,000
ASSOCIATES:
NUMBER 12.0
AVG RATE 165.00
AVG HOURS 1650
TOTAL HOURS 19,800
TOTAL VALUE 3,267,000
LEGAL ASSTS:
NUMBER 4.0
AVG RATE 75.00
AVG HOURS 1,100
TOTAL HOURS 4,400
TOTAL VALUE 330,000
OTHER 50,000
TOTALS 6,347,000
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PFFINFORALA102707
ASSUMP2 ASSUMPTIONS FOR FINANCIAL PLAN
RATE REALIZATION 96.0
BILLING REALIZATION 94.0
TIME TO BILL (MONTHS) 2.2
TIME TO COLLECT (DAYS) 65.0
ACCTS RECEIVABLE WRITE-OFFS 150,000
BEGINNING WORK IN PROCESS 750,000
BEGINNING ACCTS RECEIVABLE 700,000
OTHER CASH INCOME 25,000
EXPENSES 3,150,000
PFFINFORALA102707
GROSSNET GROSS TO NET CALCULATION
YEAR ENDING
BUDGET
VALUE OF BILLABLE TIME 6,347,000
RATE VARIANCE -253,880
BILLING VARIANCE -343,563
A/REC WRITEOFFS -150,000
CHANGE IN WIP & AR -625,597
NET COLLECTIONS 4,973,960
OTHER CASH INCOME 25,000
EXPENSES -3,150,000
NET INCOME 1,848,960
SHAREHOLDER EARNINGS -1,760,000
OVER (-SHORT) 88,960
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SPEED OF BILLING AND COLLECTION
• HOW LONG DOES IT TAKE TO RENDER A BILL AFTER THE WORK HAS BEEN PERFORMED
• HOW LONG DOES IT TAKE TO COLLECT A BILL AFTER IT HAS BEEN RENDERED
• WHAT IS OVERALL LENGTH OF TIME BETWEEN WORK PERFORMED AND CASH RECEIPT
10
PFPROJECTIONSABCD
TURNEFF EFFECT OF CHANGES IN TIME TO BILL
AND TIME TO COLLECT ON
PARTNER AVERAGE INCOME
NET PER PARTNER INCREASE PERCENT
TIME TO BILL:
BUDGET 1.9 247,619
CHANGE TO 1.3 276,917 29,297 11.8
TIME TO COLLECT:
BUDGET 65.0 247,619
CHANGE TO 60.0 257,059 9,439 3.8
CHANGE BOTH:
BUDGET 247,619
TIME TO BILL 1.3
TIME TO COL 60.0 286,844 39,225 15.8
PROFITABILITY MEASUREMENTS
• FIRM LEVEL
• BILLING ATTORNEY
• ORIGINATING ATTORNEY
• PRACTICE AREA
• CLIENT
• INDIVIDUAL TIMEKEEPER
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12
13
ALMOST 80% OF EXPENSES WILL BE DEVOTED TO COMPENSATION, RELATED BENEFITS AND OCCUPANCY
UNLESS SERIOUS DOWNSIZING OCCURS, 92% OF MOST EXPENSES ARE FIXED AND DO NOT VARY WITH NUMBER OF PEOPLE
MOST OWNERS HAVE AN EXAGGERATED VIEW OF PROFIT IMPROVEMENT THROUGH EXPENSE REDUCTIONS
MOST IMPORTANT CONSIDERATION IS LEVEL OF SERVICE
14
ILLUSTRATIONSFILE
ACCVSCASH
MEASURING ACCRUAL BASIS VS. CASH BASIS
TIME VALUE 6,626,730
EXPENSES 3,494,080
ACC BASIS EXP RATIO 52.7
CASH RECEIPTS 4,390,580
EXPENSES 3,494,080
CASH BASIS EXP RATIO 79.6
15
CALCULATING BILLING RATES
• COMPENSATION
• OVERHEAD
• REALIZATION
• PROFIT EXPECTATION
• BILLABLE HOURS
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CALCULATION OF RATE FACTOR
AS % OF AS % OF
SALARY BILLING RATE
SALARY 100.0 ?
OVERHEAD 140.0 ?
REALIZATION ? 5
PROFIT ? 30
TOTALS ? 100.0
FACTOR BECOMES MULTIPLIER OF HOURLY COMPENSATION COST TO GET HOURLY RATE
BILLING RATE FORMULA
COMPENSATION X FACTOR
DIVIDED BY
BILLABLE HOURS
85000 X 4.1 = $348,500
HOURS 1,800
RATE $193.61
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RATE
FORMULA FOR BILLABLE RATE COMPUTATION
ASSUMPTIONS:
COMPENSATION 100,000 COPIES TO FORMULA
OVERHEAD 1.05 105,300 COPIES TO FORMULA
ESTIMATED BILLABLE HOURS 1,786 COPIES TO FORMULA
DESIRED PROFIT MARGIN 25.0 COPIES TO FORMULA
REALIZATION FACTOR 0.08 COPIES TO FORMULA
BILLING RATE ?
COMPUTED RATE 171.61
**Rate Computation** PROFORMA
ANALYSIS
Profit Percentage 25.0 Gross Income 306,418
Realization Factor 8 Less Compensation (100,000)
(Calculation) 67 Less Overhead (105,300)
Expenses 105,300 Less: Realization factor (24,513)
Overhead (x.xx) 1.05
(Calculation) 2.05 Net Income 76,604
(Calculation) 32.64
Profit Percentage 25.00
Value of Factor 3.1
Annual Comp 100,000
Billable Hours 1785.6
Rate 171.61
BILLRATE FORMULA
HOURS
FORMULA FOR BILLABLE HOURS COMPUTATION
ASSUMPTIONS:
COMPENSATION 100,000 COPIES TO FORMULA
OVERHEAD 1.05 105,300 COPIES TO FORMULA
ESTIMATED BILLABLE HOURS ?
DESIRED PROFIT MARGIN 25.0 COPIES TO FORMULA
REALIZATION FACTOR 0.08 COPIES TO FORMULA
BILLING RATE 146.00 COPIES TO FORMULA
COMPUTED HOURS 2,099
**Hours Computation**
Annual Salary 100,000
Profit Percentage 25.0 ANALYSIS
Overhead Factor (x.xx) 1.05 Gross Income 306,418
(Calculation) 2.05 Less Salary (100,000)
Realization Factor 8 Less Overhead (105,300)
Calculation 67 Less: Realization (24,513)
Billing Rate 146.00
(Calculation) 32.64 Net Income 76,604
(Calculation) 3.1
(Calculation) 306,418 Profit Percentage 25.0
Hours Required 2,099
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BILLRATE FORMULAGENERALGRIDALA
HOURS
FORMULA FOR BILLABLE HOURS COMPUTATION-BREAKEVEN
ASSUMPTIONS:
COMPENSATION 100,000 COPIES TO FORMULA
OVERHEAD 1.05 105,300 COPIES TO FORMULA
ESTIMATED BILLABLE HOURS ?
DESIRED PROFIT MARGIN 0.0 COPIES TO FORMULA
REALIZATION FACTOR 0.08 COPIES TO FORMULA
BILLING RATE 146.00 COPIES TO FORMULA
COMPUTED HOURS 1,528
FORMULA FOR BILLABLE RATE COMPUTATION-BREAKEVEN
ASSUMPTIONS:
COMPENSATION 100,000 COPIES TO FORMULA
OVERHEAD 1.05 105,300 COPIES TO FORMULA
ESTIMATED BILLABLE HOURS 1,786 COPIES TO FORMULA
DESIRED PROFIT MARGIN 0.0 COPIES TO FORMULA
REALIZATION FACTOR 0.08 COPIES TO FORMULA
BILLING RATE ?
COMPUTED RATE 124.97
ALTERNATIVE BILLING
METHODS:
MYTH
OR
REALITY
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PROBLEMS WITH HOURLY BILLING
SYSTEMS
• TOO EXPENSIVE VERSUS QUALITY ACHIEVED
• ENCOURAGES ADDITIONAL WORK WHEN NOT REQUESTED BY CLIENT OR REQUIRED
• DOES NOT ENCOURAGE LONG TERM LAWYER-CLIENT RELATIONSHIPS
• DOES NOT PROMOTE MANAGEMENT OF FILES OR TRAINING OF ATTORNEYS
INGREDIENTS FOR
ALTERNATIVE BILLING
• SIMILAR ASSIGNMENTS
• PRIOR WORK PRODUCT AND THE TECHNOLOGY TO USE IT
• COST ANALYSIS
• CHANGES IN FIRM CULTURE
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PROBLEMS IN IMPLEMENTING ALTERNATIVE
BILLING ARRANGEMENTS
• GETTING ATTORNEYS TO TRY SOMETHING DIFFERENT
• GETTING CLIENTS TO TRY SOMETHING DIFFERENT
• BETTER AND MORE EFFICIENT MANAGEMENT OF THE WORK
• SACRIFICING QUALITY FOR EFFICIENCY
• ESTABLISHING NEW BUDGETING SYSTEMS
• REVISING REWARD SYSTEMS
ALTERNATIVE BILLING ARRANGEMENTS
• FIXED FEES
• VOLUME DISCOUNTS
• BLENDED HOURLY RATES
• INCENTIVE BILLING
• MODIFIED CONTINGENCY ARRANGEMENTS
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BLENDED RATE COMPUTATION
PARTNER 30 HRS @140 $4,200
ASSOC 60 HRS@ $75 4,500
LEGAL ASST 50 HRS @ $40 2,000
TOTAL FEES $10,700
TOTAL HOURS 140
BLENDED HOURLY RATE $77.00
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PAY EXPENSES
PURCHASE EQUIPMENT
RETIRE DEBT
FUND CLIENT COSTS
PAY THE OWNERS
MONTHLY WORKING CAPITAL
PERCENT OF TOTAL INCOME TO BE PAID BY YEAR-END
PAYMENT OF SUPPLEMENTAL OWNER PAYMENTS
CAPITAL BUDGET
NET INCREASE OR DECREASE IN CLIENT COST ADVANCES
AMOUNT OF DEBT AT END OF YEAR
23
SOURCES OF FUNDS- NET INCOME- BANK BORROWINGS- DEPRECIATION- CAPITAL CONTRIBUTIONS
USES OF FUNDS- OWNER COMPENSATION- DEBT REPAYMENT- FIXED ASSET ADDITIONS- CLIENT COST ADVANCES
PFFINFORALAMAY2016
CSHFLWCHT
ABC LAW FIRM P. C.
STATEMENT OF CASH FLOWS
BUDGETED
NET INCOME 1,848,960
ADD BACK DEPRECIATION 100,000
CASH FROM OPERATIONS 1,948,960
CHANGE IN CLIENT ADVS -75,000
PURCHASE OF FIXED ASSETS -60,000
CHANGE IN DEBT -50,000
CHANGE IN BEG & ENDING CASH BALANCE 5,000
CASH AVAILABLE FOR DISTRIBUTION 1,768,960
SCHEDULED DIST TO PARTNERS -1,760,000
UNDISTRIBUTED PROFITS 8,960
24
25
PFFINFORALAMAY2016
MARGINALINCOME
PROFIT ANALYSIS
ASSUMPTIONS:
ATTORNEY A:
SALARY 70,000
COSTS-FULL OVERHEAD 110,220
BILLABLE HOURS 500
HOURLY RATE 325
STANDARD VALUE OF TIME 162,500
0.95 RECEIPTS 154,375
CASH REALIZATION RATE 0.950
CALCULATE AT ACTUAL PROFIT
RECEIPTS 154,375
COMPENSATION (70,000)
OVERHEAD (110,220)
NET PROFIT (25,845)
PROFIT PERCENTAGE (16.7)
26
PROFIT ANALYSIS
ASSUMPTIONS:
ATTORNEY A:
SALARY 70,000
COSTS-MARGINAL COSTS
PAYROLL TAXES 5,355
BENEFITS 12,000
MALPRACTICE 4,000
SUPPORT SVCS 20,000
OTHER (CLE, DUES) 10,000
TOTAL MARGINAL COSTS 51,355
BILLABLE HOURS 500
HOURLY RATE 325
STANDARD VALUE OF TIME 162,500
0.95 RECEIPTS 154,375
CASH REALIZATION RATE 0.950
CALCULATE AT ACTUAL PROFIT
RECEIPTS 154,375
COMPENSATION (70,000)
OVERHEAD (51,355)
NET PROFIT 33,020
PROFIT PERCENTAGE 21.4
PFFINFORALA50115 STANDARD RATE HOURS
STDRTEHRS
ASSOC A ASSOC B
STANDARD RATE 175.00 175.00
BILLABLE HOURS 2000 1650
ACTUAL VALUE OF TIME 270,000 288,750
ACTUAL RATE 135.00 175.00
STANDARD RATE HOURS 1543 1650
27
MEASURING ASSOCIATE PERFORMANCE
ASSUMPTIONS:
ASSOCIATE A:
SALARY 75,000
OVERHEAD 120,000
BILLABLE HOURS 1,615
HOURLY RATE 195
STANDARD VALUE OF TIME 314,925
RECEIPTS 226,500
CASH REALIZATION RATE 0.719
SUMMARY FINANCIAL INFORMATION
ASSOCIATE A:
CURRENT COMPENSATION 75,000
AT ZERO% PERFORMANCE SUPPORTS COMPENSATION OF 106,500
ASSIGNABLE OVERHEAD 120,000
BILLABLE HOURS 1,615.0
HOURLY RATE 195
INDIVIDUAL RECEIPTS 226,500
CASH REALIZATION RATE 0.72
ACTUAL PROFIT AMOUNT 31,500
ACTUAL PROFIT PERCENTAGE 13.9
PROFIT AT PROFIT AT
0.15 0.20
CURRENT PERFORMANCE SUPPORTS COMPENSATION OF 72,525 61,200
REQUIRED BILLABLE HOURS TO ACHIEVE PROFIT LEVELS 1635.8 1738.0
REQUIRED BILLING RATE TO ACHIEVE PROFIT LEVELS 197.51 209.85
REQUIRED CASH REALIZATION RATE TO ACHIEVE PROFIT LEVELS 0.728 0.774
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PERFORMANCE – THROUGH FORMAL WRITTEN EVALUATION
PRODUCTION – NEED TO DISTINGISH OVERALL BILLABLE HOURS AGAINST STANDARD RATE HOURS.
PROFITABILITY – FUNCTION OF RATE, HOURS, REALIZATION RATE
PROSPECTS – NEED CRITERIA FOR ADVANCEMENT TO THE NEXT LEVEL
29
PFFINFORALA50115
CSHREALRATE
INDIVIDUAL ATTORNEY CASH REALIZATION
BUDGETED HOURS 1600
STANDARD RATE 300
BUDGETED STANDARD VALUE 480,000
BUDGETED FIRM CASH REALIZATION RATE 0.85
BUDGETED RECEIPTS 408,000
INDIVIDUAL ATTORNEY CASH REALIZATION
ACTUAL BILLABLE HOURS 1547
ACTUAL STANDARD VALUE 464,100
ACTUAL RECEIPTS 375,000
ACTUAL CASH REALIZATION RATE 0.81
RECEIPTS DIFFERENCE (33,000)
30
INDIVIDUAL ATTORNEY CASH REALIZATION
RECEIPTS SHORTFALL DUE TO HOURS
VALUE DIFFERENCE (15,900)
BUDGETED REALIZATION RATE 0.85
DIFFERENCE DUE TO HOURS (13,515)
INDIVIDUAL ATTORNEY CASH REALIZATION
RECEIPTS SHORTFALL DUE TO RATE
REALIZATION RATE DIFFERENCE (0.04)
ACTUAL STANDARD VALUE 464,100
DUE TO RATE (19,485)
OVERALL DIFFERENCE (33,000)
31
• BILLABLE HOURS
• RATE REALIZATION (STD VALUE VS. CLIENT VALUE)
• BILLING REALIZATION (NET WRITE-UPS/DOWNS)
• A/REC WRITE-OFFS
• GROSS VALUE OF BILLABLE TIME
• TIME TO BILL
• TIME TO COLLECT
• BILLINGS
• CASH RECEIPTS
• EXPENSES
• NET INCOME
• DISTRIBUTIONS TO OWNERS
INFORMATION GENERALLY TRACKED BY
LAW FIRMS – FIRM LEVEL
BILLING (PRIMARY) ATTORNEY LEVEL• BILLING REALIZATION
• A/REC WRITE-OFFS
• BILLINGS AGAINST BUDGET
• COLLECTIONS AGAINST BUDGET
WORKING (HANDLING)ATTORNEY LEVEL• BILLABLE HOURS
• RECEIPTS (W/CAVEATS)
INFORMATION GENERALLY TRACKED BY LAW
FIRMS-BILLING (PRIMARY ATTORNEY)
LEVEL/WORKING ATTORNEY
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QUESTION: RECOGNIZING THAT ATTORNEYS DO NOT HAVE MUCH INTEREST IN FINANCIAL REPORTS, WHAT ARE THE THREE REPORTS THAT WOULD BE RECOMMENDED FOR DISTRIBUTION ON A MONTHLY BASIS? WHAT FORMAT WOULD BE USED? I.E, PAPER, EMAIL, ETC.
MONTHLY REPORTS
TO OWNERS OF THE FIRM
PFFINFORALA
NEWMOSUM
ABCD LAW FIRM, PC
YEAR-TO-DATE SUMMARY FINANCIAL INFORMATION
FOR THE PERIOD (DATE)
MONTH YTD
BUDGETED STANDARD VALUE OF BILLABLE TIME
ACTUAL STANDARD VALUE OF BILLABLE TIME
DIFFERENCE
PERFORMANCE PERCENTAGE
BUDGETED CLIENT VALUE OF BILLABLE TIME
ACTUAL CLIENT VALUE OF BILLABLE TIME
DIFFERENCE
PERFORMANCE PERCENTAGE
BUDGETED BILLINGS
ACTUAL BILLINGS
DIFFERENCE
PERFORMANCE PERCENTAGE
BUDGETED HOURS
ACTUAL HOURS
DIFFERENCE
PERFORMANCE PERCENTAGE
BUDGETED CASH RECEIPTS
ACTUAL CASH RECEIPTS
DIFFERENCE
PERFORMANCE PERCENTAGE
CASH RECEIPTS OVER (-UNDER)
DUE TO REALIZATION RATE DIFFERENCE
DUE TO HOURS DIFFERENCE
BUDGETED EXPENSES
ACTUAL EXPENSES
DIFFERENCE
PERFORMANCE PERCENTAGE
BUDGETED NET INCOME
ACTUAL NET INCOME
DIFFERENCE
PERFORMANCE PERCENTAGE
33
PFFINFORALA
CSHFLWCHT
ABCD LAW FIRM, PC
STATEMENT OF CASH FLOWS
FOR THE PERIOD (DATE)
MONTH YTD
CASH BALANCE - END OF PREVIOUS PERIOD 439,760 109,978
CASH RECEIVED
CLIENT RECEIPTS 505,861$ 6,100,248
TOTAL CASH AVAILABLE 945,621$ 6,210,226$
EXPENSES (337,048) (3,315,563)
OTHER NET CHANGES (2,668) 13,189
NET CASH AVAILABLE FOR SH DISTRIBUTIONS 605,905 2,907,852
SHAREHOLDER DISTRIBUTIONS (484,481) (2,786,429)
CASH BALANCE - END OF CURRENT PERIOD 121,424$ 121,424$
PFFINFORALA
HRSRPT ABCD LAW FIRM, PC
BILLABLE HOUR INFORMATION
FOR THE PERIOD ENDING (DATE)
SHAREHOLDERS
BUDGET ACTUAL VARIANCE PERF BUDGET ACTUAL VARIANCE PERF
MONTH MONTH AMOUNT PERCENT Y-T-D Y-T-D AMOUNT PERCENT
SH 1
SH 2
SH 3
SH 4
SH 5
TOT S/H
AVG S/H
NON-SHAREHOLDERS
NS 1
NS 2
NS 3
NS 4
NS 5
NS 6
NS 7
TOTAL NON S/H
AVG N/S
PARALEGALS
P/L 1
P/L 2
P/L 3
TOT P/L
AVG P/L
OTHER
TOTALS
34
• OWNER COMPENSATION FOR THE MONTH, YTD AND BALANCE DUE
• SCHEDULE OF ORIGINATIONS AND HANDLINGS BY TIMEKEEPER
• TIMEKEEPER PROFITABILITY (QUARTERLY)
• PRACTICE AREA PROFITABILITY (QUARTERLY)
• DETAILED INCOME STATEMENT (QUARTERLY OR SEMI-ANNUALLY) – ACT VS. BUDGET
• RECEIPTS PERFORMANCE – DUE TO HOURS AND DUE TO REALIZATION RATE BY TIMEKEEPER
OTHER KEY MONTHLY REPORTS
ANNUAL REPORT
TO OWNERSTABLE OF CONTENTS
• BALANCE SHEET – CASH BASIS
• INCOME STATEMENT
• STATEMENT OF CASH FLOWS
• SUPPLEMENTAL INFORMATION- ACTUAL VS. BUDGET
• OFFICE BY OFFICE FINANCIALS (IF APPLICABLE)
• PROFITABILITY ANALYSES BY TIMEKEEPER, PRACTICE GROUP, BILLING AND ORIGINATING ATTORNEY
• BILLABLE HOURS BY TIMEKEEPER GROUP – ACTUAL VS. BUDGET
• BALANCE SHEET – ACCRUAL BASIS
• YEARLY COMPENSATION INFORMATION
• CAPITAL BALANCES – OWNERSHIP INTERESTS
• BUDGET FOR FOLLOWING YEAR
35
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Your opinion matters!
Please take a moment
now to evaluate this
session.