Tracking Shot: How Do You Manage Your Law Firm Expenses?
You know that to effectively manage your law firm finances that you need to create revenue projections, to establish goals for what you want to make. You also understand that in order to establish revenue projections in a coherent way, you have to establish a figure for your overhead, i.e. — the costs that go into running your law firm. Of course, you are acutely aware that your costs to operate equal business expenses, and that some of those business expenses, the larger ones (like malpractice insurance and your office rent) are easier to keep track of than others. But, w hat if you treat somebody to lunch? Or , you gas up a rental car? Tracking business expenses admits of the same issue as tracking time spent on client matters: If you’re not diligent, you may miss out on some items, especially the smaller items. It’s also a good idea to contemporaneously track business expenses, just as you would contemporaneously track time on the client matters yo...