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Follow on Google News | Intelliteach Publish Inaugural Guru’s Guide to Law Firm ProfitabilityReview and analysis of 1 Billion+ firm accounting transactions yields unique billing statistics, collection metrics and revenue recovery ratios
By: insidelegal The Guru Guide to Law Firm Profitability (http://www.intelliteach.com/ The Guru Guide to Law Firm Profitability is based on business analytics data collected and analyzed from hundreds of law firms of various sizes, locations, practice areas, and compensation plans. The Guru Guide provides unique benchmark data relating to the most requested billing statistics, collection statistics, and revenue recovery ratios in the industry; and analysis of industry collection realization by firm size. Some key findings include: · Guru data shows that law firms spend just over 11% of revenue on non-secretarial & non-occupancy staff functions (back office). Finance, Administration & Office and Information Technology represent 69% of total back-office expenditures · Small firms excel at billing quickly (less ‘days of unbilled’) as well as getting high billing realization · Within the past five years, Recovery Rates (as measured as a collection percentage from the Total Open A/R Balance Pool) have decreased from 83.08% in 2008 to 78.08% in 2012 · The industry averages just 44.1% collection rate when invoices pass the 180 days old mark · Moving up collections activities by 30 days, from say 90 to 60 days, increases the likelihood of collections by 15% · The average firm has 73 days of A/R in inventory, an increase of three days over the last 12 months. “It remains abundantly clear that law firm leaders are under continual pressure to maximize efficiencies and revenue opportunities so having a benchmark report like the Law Firm Profitability Guru Guide will prove invaluable in making sound financial decisions,” stated Seelin Naidoo, CEO, Intelliteach. “Now, for the first time, we are making certain benchmark data available to help firm leaders see how these statistics compare to their own, and determine for themselves whether outsourced accounting and accounts receivable functions could help them run a more efficient operation.” The complete press release can be viewed here (http://www.intelliteach.com/ End
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