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Critical Firm Metrics (Part 1)

By Chris Emerson posted 07-29-2014 21:56

  
Which metrics should a firm really pay attention to in order run efficiently and profitably?  We posed this question to a number of industry thought leaders.  When we reached out to Steve Odom, Chief Financial Officer of Bricker & Eckler LLP for his thoughts, he replied as follows:

Steve: 
            

Pay attention to the leaks.  Your billing process can be leaking money.  There are three things to watch out for.

  1. Watch the negotiated rates up front. While a necessary evil, don’t give away the farm.

  2. Watch the write-downs at the time of billing.  Better management of matters can help reduce these.

  3. Watch the write-offs after the matter is billed.  Stay on top of the receivables and you’ll create better cash flow.

Thanks very much Steve!  All of these discounts definitely impact top line revenue.
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