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How to avoid pitfalls in an uncertain economic context

by with No Comment Lawyer EntrepreneurDigitalizationProductivity

More and more lawyers are discovering the power of BI or Business Intelligence.

Yes, it's a somewhat barbaric term and not necessarily very clear.

Explanations.

For a long time, lawyers had to juggle a wide variety of information sources to get an idea of ​​their firm's economic activity. Excel spreadsheets immediately come to mind, updated as often as possible, but which quickly become outdated. Then it's back to the drawing board.

Another source is the accountant. A phone call or an email provided more or less rapid feedback to find out the turnover achieved to date and, in the best case scenario, whether the firm was generating a result or not.

In an economic context that is tense and becoming more and more uncertain, this artisanal mode of operation no longer meets the challenges. The parameters are identified:

☣️ galloping inflation
☣️ rise in interest rates
☣️ purchasing power of households at half mast
☣️ economic slowdown, possibly recession
☣️ deterioration of the geopolitical situation
☣️ health crisis and successive waves of confinements

The events that have occurred since 2020 have taught us that nothing is impossible, even the unimaginable.

But it goes both ways. The worst is never certain 🌈!

In this context full of challenges, it is crucial to see as clearly as possible. Well-ordered charity begins with oneself. To avoid being a passenger dependent on the vicissitudes of the market, it is better to be in charge.

This is where BI comes into play!

The lawyer needs performance indicators like the captain of an A350 needs his dashboard. It's when the weather gets bad that he needs to know his route while avoiding traps.

The important thing here for any lawyer is to identify the strengths and weaknesses of their firm. To do this, it must have several indicators and monitoring tables. Let us cite a few particularly essential ones:

📈 The turnover achieved to date + forecast

📊 The amount of unpaid amounts overall and per customer

📈 The elderly scale

📊 Customers to bill

📈 Profitability per File and per Client

📊 The top 10 Customers by CA excluding tax

📈 The top 10 Files by CA HT

Updated 29 / 08 / 2022

Automate

Of course, these detailed indicators and tables should act as facilitators, meaning that they should not represent an additional workload for lawyers. 

The update must therefore be entirely automated, this is a key point in the success of the approach undertaken by the firm. Thus, even when carrying out your activity alone, you can have the same information as structured firms with greater resources.

Accuracy

Beware of an overdose of information and indicators. But even with the right indicators in place, it is necessary to be able to target the information sought. Each indicator, each table must offer the user the possibility of being able to filter the information to be displayed to allow him to visualize only the expected results. Better understanding a situation requires usable information. 

The power of the Cloud

This is where one of the main advantages of SaaS solutions lies, developed specifically to be intuitive and always available.

Because this is the other challenge: being able to consult these key indicators at any time and wherever you are. This means that the lawyer must be able to connect to the firm while traveling, from their own computer or from third-party equipment, without ever putting their data at risk.

This is a notable difference with the usual Excel tables: having a real BI allows you to consult your performance indicators as soon as it is necessary, simply and immediately. It's much simpler and more flexible than with an Excel table which requires a PC or a (large) tablet at least.

If the subject interests you and you want to regain control of your activity to be prepared to deal with any situation, do not hesitate to contact one of our specialists: 

Make an appointment with a specialist
boost your cash flow

7 best practices to boost your cash flow

by with No Comment Lawyer EntrepreneurProductivity

Cash flow is the crux of the matter. Lawyers, independent or in law firms, are just as concerned by this central problem. Especially since, very often, they have an ambiguous relationship with money. This sometimes creates situations of tension on a cash flow already undermined by the various crises experienced recently: strikes in defense of the retirement system, yellow vest movement, astonishment linked to the pandemic then closure of courts and now economic uncertainty created by the war in Ukraine.

Fortunately, there are good practices to boost the firm's cash flow and thus protect against insomnia or periods of slowdown in activity.

1. Manage your cash flow

Knowing at any time what the firm's cash flow level is constitutes the basis for any prior action on the subject.

The first step is to regularly check the available funds in your bank account:

– If you only have one account, check the balance online or from your mobile app

– If you have several bank accounts, use an aggregator like Bankin (it’s free) which will allow you to see at a glance the total available on all of your accounts

The second step is to anticipate your expenses and expected income for the next three months. Create an Excel spreadsheet where you can enter your income on one hand and your expenses on the other, to then calculate your available balance each month. Click here to download the template we're providing for free. Here are a few tips for filling out this spreadsheet.

– Prioritize recurring expenses and income such as rent, various subscriptions, monthly payments (insurance, service contracts, bank charges, etc.)…

– Then enter the expected amounts in descending order to avoid forgetting which would have a strong impact on the final result

This work needs to be done consistently over time. Therefore, it's important to ensure this spreadsheet is updated regularly by setting aside a one-hour slot every week (same day and same time) to keep it active and useful. Add it to your Outlook calendar to make sure you don't forget.

You now have a tool that allows you to anticipate and take preventive actions to avoid finding yourself in a delicate situation. It's time to move on to the initiatives you can take to boost your cash flow.

2. Cash out sooner

For reasons that are still unclear (we have been supporting thousands of lawyers for almost 10 years), lawyers often feel uncomfortable when billing their clients or when talking to them about money. It's a shame because this often places them in a complicated financial situation that they generate themselves!

This is all the more regrettable because the longer they wait to invoice their clients, the more the bill increases and the more embarrassing the situation becomes for the lawyer. In short, it's the snake that bites its own tail! Fortunately, there are simple solutions that the lawyer can quickly implement.

These are the well-known retainer invoices . They allow the lawyer to collect a substantial portion of the amount they will bill for the case. A golden rule dictates that the lawyer should always ask their client to pay the retainer invoice before taking any action on their behalf. Establishing this rule from the outset will not pose any problems. On the contrary, the client will appreciate the honesty and clarity of the approach. Conversely, receiving an invoice unexpectedly is always more delicate. It can lead to time spent on explanations and justifications.

Invoice your clients even before you start working for them: this fosters a strong relationship and creates a more relaxed working environment. Using software like Jarvis Legal simplifies the creation and sending of retainer invoices, as well as the drafting of customized fee agreements with the client's contact information.

3. Invoice your customers regularly

As the case progresses, the lawyer enters time and incurs costs on behalf of his client. It is counterproductive to wait too long to bill it, for the reasons already mentioned above. It is preferable to invoice your client regularly, which allows you to maintain a permanent and constructive dialogue. In fact, it is an opportunity to keep him informed of the progress of his file and to answer any questions he may have. If there is a pitfall, it is dealt with as soon as it appears, which facilitates its rapid resolution.

There are mainly three effective billing methods within law firms:

– Pay as you go billing

– Invoicing at the end of the month

– Billing upon reaching a level

To do this, lawyers need an up-to-date view of their cases, client by client, to know when and to whom to bill. Software like Jarvis Legal offers this type of functionality, allowing lawyers to generate invoices for multiple clients in just a few seconds. Invoices are then personalized and printed on the firm's letterhead. They can be sent directly by email, with a read receipt to facilitate tracking by the responsible lawyer.

4. Shorten payment terms

Invoicing your customers regularly allows you to trigger the payment deadline sooner and collect the amounts to be collected more quickly. Depending on its activity and the type of its clientele, a law firm will grant variable payment deadlines. You must therefore be able to identify them in order to follow them precisely and trigger reminders in a timely manner (see below).

The payment deadline will have a strong impact on cash flow. Indeed, between the moment when the service is “produced” by the lawyer and the moment when the latter is paid, the Working Capital Requirement (WCR) must be financed. That is to say the expenses linked to the proper functioning of the firm to produce the service promised to clients. The later the firm invoices, the later it will collect, the longer the period to be financed (and therefore the WCR) will be and therefore more expensive. Another perverse effect, poorly understood, the BFR can lead the lawyer to think that he must charge more, risking further straining the relationship with his clients on this subject and slowing down his commercial development.

The cash flow level therefore depends on the good timing between invoicing and collections. If these are slow to arrive, you must then move on to the next step: recovery.

5. Follow up with your customers as soon as they notice a delay

As we have said, it is essential to invoice your customers on time. It is just as essential to follow up with bad payers. It is therefore strongly recommended for a law firm to set up a recovery process that offers several levels of recovery. Indeed, not all customers necessarily have bad intentions when the time comes to pay the bill but they delay doing so.

They may have simply forgotten. There may be a technical or administrative problem or even an exceptional unforeseen event. It is then not necessary to be too aggressive in its recovery. On the contrary, being patient and understanding will strengthen customer relationships.

Conversely, chronic late payers must be identified to anticipate and adapt the invoicing process on the one hand, and the debt collection process on the other. Here too, turnkey solutions exist, such as Jarvis Legal, which displays an aging report for each client. This report is constantly updated and can be exported to provide a current list of clients and invoices concerned, enabling follow-up with the relevant clients.

It is essential that the lawyer does his part and takes charge of the subject because he is too often embarrassed to call or follow up with his clients on this sensitive subject. It should be noted that time is against him: the longer the situation drags on, the more complicated it will be to resolve.

6. Act quickly and efficiently in the event of cash flow difficulties

Thanks to the cash flow monitoring table presented at the beginning of this article, you have the ability to anticipate. As soon as you identify a future difficulty that could lead to a more complicated period that is likely to last, quickly make the necessary decisions.

To do this, from the list of expenses indicated in the cash flow statement, identify those which present an uncertain return on investment (ROI), which is too distant or those expenses which have no value in the eyes of your customers. This concerns your offices, operating costs, equipment as well as service providers or transport costs for example.

You will be able to re-incur these expenses when you have exited the phase of turbulence and the cash flow has returned to a satisfactory level.

7. Have a reserve to deal with unforeseen circumstances

The periods we have been going through for several years have demonstrated that no scenario, however highly improbable, should be ignored. Your cash flow must allow you to deal with unforeseen events and give you time to adapt.

Ideally, you should have 4 to 6 months of cash available. How to define this threshold? It's simple: it represents the amount of expenses to be assumed over this period, assuming that there will be no more turnover over this same period. So if you have monthly expenses of €5, the target cash flow level should be between €000 and €20 thousand to benefit from a sufficient reserve.

You can also ask your bank for an overdraft facility or overdraft authorization. Calculated in proportion to your turnover, it generally represents 15 days of turnover. This is the period during which you will be authorized to be overdrawn within the limit of the authorized amount. Be careful, however: this solution is quite expensive and you will have to become positive again within the 15-day period allowed.

Once the cash reserve has been established, it is recommended to optimize the surplus so as not to let money sit unnecessarily. Whether personally or for your employees, there are very interesting and particularly attractive solutions, such as the offers offered by Swisslife or AXA (additional income to supplement a future retirement, participation plan, contributions, etc.).

Cash flow is a highly strategic subject, both for businesses and law firms. Like the battery in your laptop or smartphone, you always need to have a reserve to face the unexpected. As we have seen here, many levers are at your disposal to take the initiative on this subject and not suffer. Now it's your turn.

To go further on this subject, download the cash flow monitoring table that we provide free of charge and do not hesitate to make an appointment with a business manager to find out more about Jarvis Legal.

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person-in-blue-shirt-wearing-brown-beanie-writing-on-white-7368-min

Collaborating lawyer, key element of the firm’s success

by with No Comment Productivity

Too often the collaborating lawyer is confined to the thankless role of specialized worker, responsible for unconditionally producing what the partner has sold. This historic organization between associate and collaborator has led to disruptions detrimental to all parties: demotivation, lack of productivity, etc.

The internal organization of the firm is often close to a paramilitary organization, with chief partners who sometimes impose a rhythm and a requirement that is difficult to achieve by the “troops”.

However, the firm benefits greatly from integrating employees into its strategy. He is in fact at the same time the specialized worker who produces, the representative of the firm and finally the future partner.

Involve the collaborating lawyer in the firm's strategy

The collaborating lawyer may well be independent and free from his commitments, but the firm has an interest in including him in its strategy. This is also the meaning of the word “collaborate”, participating in the common project. Indeed, the employee's involvement and motivation will be all the stronger if they feel integrated and consistent with the values, culture and expertise of the firm. In return, his involvement and motivation will be considerable assets in the quality of the work delivered by the firm.

We can therefore cite 3 simple ways to develop the involvement of your employees:

  • Organize a seminar once or twice a year (lunch, weekend, afternoon, etc.). Share the firm’s achievements, projects and values
  • Manage your employees: monitor their work, recognize their successes, identify areas for improvement 
  • Take their opinion into account as far as they are concerned. Which management software to use? How to distribute tasks between colleagues, with partners and legal assistants?

Improve productivity

The main job of the collaborating lawyer is to produce for the client, under the control and expertise of the lead partner. With legal secretaries, employee productivity is very dependent on the work processes and management software within the firm.

However, the employee is paid by the hour. The faster they are, the less the firm spends. That's why it's in the firm's best interest to provide the appropriate tools. Collaborative work, mobility, and ergonomics are therefore key factors in productivity. Find here the 7 reasons why your firm needs them.

Take into account the operational point of view. Also think about the organization with them, the firm as a whole will benefit from it.

Invest in your potential

Investing in the training (legal, commercial, technological) of your employees is therefore necessary for the development of your firm. The better your employees are, the more they will contribute to the development of sales, customer satisfaction and the profitability of your files.

The collaborating lawyer is also a partner in the making. Thus, the prospect of joining a attentive and well-managed firm is a motivating factor for the employee. For its part, the firm will benefit from a new partner who is already trained, efficient and in line with the firm's values.

In conclusion, considering your employees as assets is a guarantee of the firm's development. Improve software tools and managerial practices are simple and effective ways to build a high-quality team within your firm! 

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Legal software for ministries of Justice? An evidence !

by with No Comment Productivity

The justice system is criticized for its slowness, its distance from citizens, and its archaic organization. Yet, thanks to cloud-based legal software, the Ministry of Justice could significantly improve its operations and its relationship with citizens.

The opportunities of cloud legal software

Many services could usefully function thanks to cloud solutions: civil status, complaint filings, transfer of information between entities (police station, prison, court, lawyers, etc.), etc.

person-in-blue-shirt-wearing-brown-beanie-writing-on-white-7368-min

Time management software: 7 reasons why your office needs it!

by with No Comment Productivity

Lawyers offer their clients their expertise and advice. These services are valued in terms of time spent. The lawyer then bills their fees based on the time spent on each case, in accordance with bar association rules. From this point on, time management software offers immense advantages. Here are 7 good reasons why you should equip yourself with it!

Bill accurately

people-in-couch-1024248-min

5 questions to ask yourself when choosing your legal software

by with No Comment Productivity

It's impossible to run a law firm or freelance practice without legal software . However, when it comes time to choose, how do you select the tool that best suits your current and future needs? Here are 5 questions to ask yourself to make an informed decision…

Take legal software specifically

Many software programs offer time entry, file management or CRM functionalities. But only exclusively legal software is designed for the specific organization of legal professions and lawyers. It is therefore important to ensure that your software is aimed specifically at lawyers and not at all professions.

Focus on features

Although the subject is complex, you must, as a lawyer and entrepreneur, check that the solution you wish to equip your office with corresponds to your work habits.

Time entry and invoicing features are essential. What about case management? editing documents? Can we share our internal information? and with clients or opposing parties? Is there a CRM? So many questions that must be asked and so many answers that must be analyzed in order to make the right choice.

Check the quality of customer relations service

Once your solution is purchased/subscribed, you will use it every day. Verify that your solution provider will support you and how. Customer support at the start of the subscription, frequent webinars, easy and responsive access to support teams are all decisive subjects for your experience with your new legal software to be conclusive.

The brand image of the supplier is not necessarily a sufficient guarantee: mobile telephone or Internet access operators are common examples of large companies incapable of delivering a satisfactory support service.

Ask questions, ask what tools are deployed on a daily basis for users: you will make a more reassuring purchasing decision over time.

Hosted solution or local solution?  

Software installed locally on your computer or server has several drawbacks . First, it's expensive because it requires constant maintenance. Updates are also longer and more complicated, requiring installation via a CD or DVD and usually incurring a fee. Finally, locally installed solutions are vulnerable to cyberattacks (viruses, ransomware).

We therefore recommend prioritizing hosted solutions, ideally in a private cloud. Installing your software on a hosted server still requires you to secure your infrastructure and complicates day-to-day use. A private cloud, like the one offered by Jarvis Legal, provides the best security for your data and a user-friendly experience.

Watch the full cost over the life of use

Some solutions may seem cheaper because they offer a lower monthly payment. For example, many costs are not in the monthly payments: cost of migration, installation, configuration, training (obligatory or not)? Then, the scope included in the price can change between competitors, with some integrating options that others do not include.

It is therefore the complete cost over 3 years which truly allows legal software to be compared with each other. And there, generally, the cheapest offers are no longer what we think… This is the case for Jarvis Legal which offers low entry costs and a variable monthly payment between €29 and €86 per month. Thus, the complete cost to the practice is generally lower than the competition.

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Working 10 weeks in Silicon Valley, a decisive asset

by with No Comment DigitalizationProductivity

Jarvis Legal was part of the BPI France and Business France program in Silicon Valley, called Impact North America.

Thus, for 10 weeks in San Francisco, USA, our team was able to develop our American activity and improve our solutions.

This experience is recounted in this interview (in English) given to Impact North America by the president of Jarvis Legal, Alexandre Yérémian.