QuickBooks Certified ProAdvisor and Law Practice Channel contributor Lisa Wagner knows more than her fair share when it comes to how firms can use QuickBooks. She has helped multiple law firms across the nation set-up and use the popular accounting system. I came across one of her article’s about the system, and thought it would be more than helpful for any attorney looking to use it. It includes the several resources, all of which cover a broad range of helpful tips.

Lisa’s original blog post can be found at:

http://www.advocatecapital.com/2013/05/28/law-firms-using-quickbooks-setting-up-tracking-case-costs/.

Winning verdicts and settlements typically mean a law firm is on the right track. After all, if your clients come out victorious, it typically translates into more profit for your firm. Is there anything else worth keeping track of when it comes to knowing whether or not your firm is profitable after a series of wins?

Years ago, a “no” might have sufficed. However, the recent changes in technology have ushered in advanced software, litigation support that can give a jury a clear picture on how accident happened, and new ways of getting your firm’s name out into the public that go beyond the historic newspaper and TV ads. In order for these things to work, one must be willing to cover the costs.

I just recently came across an article  by Frank Strong called “Six Business Metrics Every Law Firm Should Measure.” To view the full article, click here. I have to agree strongly with the article, as some of the metrics mentioned were:

• Cost of servicing a client
• Marketing expenditure as a percent of revenue
• Technology expenditure as a percent of revenue

I believe keeping track of these metrics of business is extremely important, especially for a contingent-fee based law firm. Even if an attorney is winning a lot of cases, he can quickly find himself in a financial bind if he is only focusing on the money coming in.

By Josh Habegger

Are You Spending Too Much for Medical Records?

Provider fees can pile up and damage a firms cash flow, so it is important that attorneys look for ways to get the information that they need and keep expenses to a minimum.  We all want our medical records as soon as possible, but it is important that you, or your medical record vendor, verify every invoice before paying the provider or copy service.  It is a daily occurrence that we find our clients are being overcharged for their records, and we have to fight to make sure they do not pay more than they should.  Besides double and triple checking your invoices, consider only ordering certain sections of a medical record, or as we refer to them “sub-types”.  Instead of ordering a full medical record, that could be several hundred pages, order a few sub-types and reduce the number of pages by up to 80%.  If a state statute allows the provider to charge upwards of $1.00/page, you will realize substantial saving over a short period of time.

A Few Tips to Keep Provider Fees in Check

As I mentioned above, always check to make sure you are never over charged for your medical records.  This practice should be implemented as a standard in your ordering process.  Some firms have the ordering process down to a science and know exactly what to look for and which sub-types to order.  We give our clients an easy way to order sub-types and all it takes is a few clicks.  The sub-types most often ordered are: Abstract of Medical Records, Doctor’s Records, Operative Reports, Admission/Face Sheet, Chart Stickers, & Radiology/Diagnostic Reports.  This practice will allow you to quickly locate exactly what you are looking for and save your firm a substantial amount of money.

Quick tip-  Many cases will require the full medical record, but always order sub-types for pre-intake.

For more tips on best practices you can contact us at: info@nationalrr.com

As we begin a new year it is a great time to consider ways to improve work processes and increase efficiency within your organization. One particular area that you might be able to be more strategic in your practice is the accounts payable and accounts receivable department.

Bill.com offers a safe, bank-level security, cloud based platform for streamlining accounts payable and accounts receivable. We’ll begin by highlighting the accounts payable benefits. Vendor invoices go directly to Bill.com where the information is entered (scanned), eliminating time consuming data entry.  Invoices are then available for your review and approval. Think of it as your invoices arriving – already input into your system.  Users of Bill.com retain full control over outgoing payments, but the information is already input for you.  The information is fully digitized and fully accessible to users from anywhere there is an internet connection, including mobile devices. The system includes automated reminders and even notification if a payment doesn’t clear within 20 days (no more un-cleared checks hanging out there).  This electronic management of accounts payable also makes vendor history easily accessible and audits a breeze.  The solution also integrates with a number of accounting packages such as QuickBooks, providing even more efficiency.  Check out their website for pricing options and the option to try their solution risk free.

Also, check out their article:  5 Reasons Your financial Data is More Secure in the Cloud

Let us know if you have ideas you would like to share to help improve efficiency within the organization!

In yet another ruling in United States Tax Court, case expenses advanced by a contingent-fee law firm on behalf of its clients have been found to be “in the nature of loans” rather than tax-deductible expenses for the law firm. (Humphrey, Farrington & McClain, P.C., v. Commissioner of Internal Revenue).

Like many rulings before it, this case upholds Private Letter Ruling 8246013 (6/30/1982, IRC Sec(s). 162) which states that a law firm “…may not deduct as ordinary and necessary business expenses the various litigation costs advanced for a client on a contingent-fee case…”.

If you would like to receive a copy of either the Humphrey ruling or PLR 8246013, please click here.  I recommend you consult with your CPA today to make sure that your law firm is in compliance on this important issue.