Law Firms: Watch out for unprofitable revenues
A recent survey conducted by Citi Private Bank’s Law Firm Group suggests that billing rates increased at an average rate of 3.2% whereas expenses grew by 3.1% in the first half of 2016. It means that the increase in the billing rates has been completely nullified by the increase in expenses; profits are not up to mark despite of law firms getting expensive in front of clients.
The same survey also reported that the demand for legal services grew at a negligible rate of 0.3% along with a 1.3% decline in lawyer productivity, driven by an increase in lawyer head count.
The signs are not encouraging, and experts believe that there may be another correction if this imbalance between demand and price continues in the latter half of this year.
So, what could be the solution of this tricky problem? How can a law firm beat the inflation if the increase in revenues is not enough to arrest it for good?
Well, a penny saved is a penny earned!
Many of the law firms have already realized it. They have already started embracing technology, moving towards paperless offices and using virtual staff in an attempt to increase both the efficiency and productivity of their staff which in turn is increasing the profitability as well.
Draft n Craft has worked with hundreds of law firms and helped them get over the cash-flow impediments which eat-up their profits, despite them working hard to increase their revenue.
The company is providing cost-effective legal support services to the US law firms such as depositions & medical records summary, legal research, indexing & proof-reading of legal documents, form fill-ups, data entry, drafting of summons & complaints, settlement demands, discovery requests & responses, pleadings, motions and interrogatories, etc.
Draft n Craft is one of the few companies which has thrived on making outsourcing successful even for small and mid-size law firms and has proved that by leveraging the resources of an outside support company, the firms can not only focus on solving their client problems but can increase their profits as well.