Legal fees can be very high and legal firms do everything they can to maximize their profits. Because most attorneys charge their clients by the hour, they have to keep very careful record of the work that they perform on any specific case or for any specific client. Every call, email or letter is meticulously recorded and the client is expected to pay for it. In order to keep these records, legal firms use sophisticated systems designed to generate statistics for lawyers.
One of the reasons why legal statistical systems are so complex is because attorneys must not only be able to record the work that they perform on a case, but they must also be able to justify why the work was necessary. This means that attorneys must always be conscious of which client it is that should be billed for the work he is currently performing.
Attorneys seldom work alone. They are almost always employed by large firms and teams of attorneys work together on cases. Such teams also often have support staff. Senior attorneys therefore delegate simple tasks to junior staff while they concentrate on the more complex issues. Because the client will be charged by the hour, this is one of the best ways in which to maximize profits but strict records must be kept regarding the specific work performed by each member of the team.
Legal firms also need to keep extensive records for marketing purposes. When they bid for the business of a large corporation, for example, they need to show concrete proof of their capacity and their past performance. They must also be able to prove that they are experienced in handling a variety of legal issues and that they have all the resources necessary to handle the business at hand.
Most large legal firms also keep meticulous records about the performance of their rivals. They would find it difficult to remain competitive if they are not cognizant about the activities of the competition. These records are used to measure the performance of the firm and to implement strategies to become more competitive. Such records also help firms to identify promising attorneys at other firms and to institute recruitment procedures.
When firms accept cases on a contingency basis they are gambling that they will win the case. This is because clients in these cases do not pay the attorney. Instead, the attorney receives a percentage of the final settlement amount. Firms do not gamble blindly in such cases. They use their statistics to mathematically calculate the likelihood of success before accepting the case.
Detailed records also allow many firms to offer clients a fixed quotation instead of an hourly rate. This is because they are able to calculate with certainty the amount of work and effort that will be required in many types of straight forward cases. Most people prefer to know up front exactly how much a legal matter is going to cost. Flat rates can only be charged if detailed records are kept over time.
Legal firms expect their attorneys to be productive and profitable. They need to spend their time on those activities that will generate the highest possible income. In order to do this it is necessary to be able to account for every minute spent on a case and this require a sophisticated record keeping system.
One of the reasons why legal statistical systems are so complex is because attorneys must not only be able to record the work that they perform on a case, but they must also be able to justify why the work was necessary. This means that attorneys must always be conscious of which client it is that should be billed for the work he is currently performing.
Attorneys seldom work alone. They are almost always employed by large firms and teams of attorneys work together on cases. Such teams also often have support staff. Senior attorneys therefore delegate simple tasks to junior staff while they concentrate on the more complex issues. Because the client will be charged by the hour, this is one of the best ways in which to maximize profits but strict records must be kept regarding the specific work performed by each member of the team.
Legal firms also need to keep extensive records for marketing purposes. When they bid for the business of a large corporation, for example, they need to show concrete proof of their capacity and their past performance. They must also be able to prove that they are experienced in handling a variety of legal issues and that they have all the resources necessary to handle the business at hand.
Most large legal firms also keep meticulous records about the performance of their rivals. They would find it difficult to remain competitive if they are not cognizant about the activities of the competition. These records are used to measure the performance of the firm and to implement strategies to become more competitive. Such records also help firms to identify promising attorneys at other firms and to institute recruitment procedures.
When firms accept cases on a contingency basis they are gambling that they will win the case. This is because clients in these cases do not pay the attorney. Instead, the attorney receives a percentage of the final settlement amount. Firms do not gamble blindly in such cases. They use their statistics to mathematically calculate the likelihood of success before accepting the case.
Detailed records also allow many firms to offer clients a fixed quotation instead of an hourly rate. This is because they are able to calculate with certainty the amount of work and effort that will be required in many types of straight forward cases. Most people prefer to know up front exactly how much a legal matter is going to cost. Flat rates can only be charged if detailed records are kept over time.
Legal firms expect their attorneys to be productive and profitable. They need to spend their time on those activities that will generate the highest possible income. In order to do this it is necessary to be able to account for every minute spent on a case and this require a sophisticated record keeping system.
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