To law firms and attorneys, keeping expenses in check through costs control is essential to their job profitability. However, the quality of service cannot be compromised. When it seems hard to strike a balance between the two, one needs to implement the following cost-cutting tactics:
Timing invoice payments correctly
Timing is crucial when paying your invoices. Even when these are paid too early, they can have an unwanted impact on your finances. You need to slow down the cash flow and pay everything when it is due. Monitoring this process leads to a better handling of your cash.
Downsizing? Only when necessary
When facing financial trouble, many la firms start to reduce their number of employees. This is a beneficial strategy in some cases. Prudence is extremely important here though. When reducing the headcount, you’re placing additional burdens on the remaining staff, which may be overwhelming. A common consequence of this is to face a loss of revenue. Instead of firing, you may want to cut the salaries temporarily.
Deal with a business phone company
Attorneys are frequently calling clients, witnesses and many more, to advance and complete their work. The cumulative costs can be cumbersome, especially in the long run. Consider signing up for an attorney phone system – it help you transfer calls to different locations, prevent third parties from having the attorney’s phone number and much more. Besides, it’s got many free features of great interest to law firms, as well as to various other businesses. On top of all that, a phone system of this kind ensures consistency through and through.
More attention to the Financial Management
Lawyers working solo, as well as law firms, don’t pay much attention to Financial Management. While it is expected of them to put the client forward, this task shouldn’t be neglected. Keep an eye on the financial statements too and compare these to the cash flow reports. By doing this regularly, you will learn to spot problem areas and correct them.
Outsourcing the IT and legal work
Additional legal work may be too much, particularly in terms of expenses. The same goes with many of the IT-related tasks. They take a lot of time and it’s just so much easier to outsource such work. You may get to pay less and not only that; your staff gets more time on their hands to spend on improving the firm’s revenue.
Finally, if running a physical office is still too costly, perhaps you should consider creating a virtual one, thus operating online entirely.