Are you meeting your revenue goals? If not, do you know why? Are you or your paralegal handling the back office functions when you could be billing your time? If so, you are losing revenue. Do you have an onsite bookkeeper? If so, are you confident in the integrity of your numbers? Outsourcing your back-office functions such as bookkeeping, billing, payroll, human resources and office management makes sense now more than ever especially for small law firms and businesses.
Brenda Barnes, CPA
Did you know?
Law firm growth and profitability are significantly reduced by the time and cost of back office management.
Small law firms do not have the scale to benefit from consolidation and centralization of back office operations.
Outsourcing frees up partner time to generate revenue.
Outsourcing reduces back office cost.
Outsourcing reduces risk and compliance exposures.
Numbers to consider…say you have an 8 Attorney Firm with 3 Partners…
Managing Partner spends a minimum 1,000 hours per year on administrative and managing partner functions. The other two partners spend a minimum of 500 hours per year each on administrative functions.
Firm has 1 part-time bookkeeper at $25 per hour. (This could also be a paralegal who has been given the client billing function so can double as lost income too)
Assume all partners bill their clients at an hourly rate of $400 per hour…
The number of potential billable hours allocated to administrative duties:
MP – 1,000 hours x $400/hour = $400,000
2 Ps- 1,000 hours x $400/hour = $400,000
The cost of administrative duties by 1 Part Time Bookkeeper:
1 PT bookkeeper – 1,000 hours x 25/hour = $25,000
B2’s cost to provide back office services for this size firm would be $75,000 per year.
Considering that Outsourcing can save 30-40% of Partner time per year, in this scenario, outsourcing potentially saves this law firm $271,000 per year or $90,000 per partner.
How about those numbers?
B2 can maximize your efficiencies and exceed your revenue goals…while you take care of your clients, we will take care of you!
