Firm Masters Budget with Precise Methodology, Revenue Per Lawyer Grows 15%

Despite their importance to a law firm’s overall financial stability and growth, establishing a budget, financial targets, and a long-term financial plan is not a priority for many practices. All too often, these critical tasks are pushed to the back burner, and firm leadership is left to navigate without the clear financial picture that would otherwise facilitate well-informed decision-making.

That’s exactly where a client found themselves not too long ago.

When the firm approached Precise, they had yet to develop even a rudimentary budget, let alone targets or a comprehensive, long-term financial plan. Leadership was unable to project their revenue and plan accordingly. Without targets to aim for or measure against, they weren’t even confident their year-end financial results were trending in a positive or negative direction.

The Solution

Leveraging our proprietary methodology developed specifically for the legal industry, the Precise team analyzed the firm’s performance and identified the specific KPIs that would provide the clearest financial picture year over year.

Once the team had a handle on the metrics, they worked with the managing partner and other key stakeholders to formulate a budget, establish targets, and develop a workable, forward-looking financial plan that would allow leadership to accurately and efficiently track income and expenses, identify areas for improvement, and plan for future growth.

The Result

One year after implementing their new budget, targets, and financial plan, Revenue Per Lawyer was up 15% compared to the prior year. Since then, the firm has experienced a steady 3% to 4% increase in Revenue Per Lawyer year-over-year.

No longer operating in the dark, leadership has a firm grasp of the metrics and can act on those insights to improve profitability and drive greater growth.