Winter, 2007
In this issue:

 How Much is Enough?
Key Factors for Determining Partner Compensation

“I'm beginning to think that my lawyer is too interested in making money.”
“Why do you say that?”
“Listen to this item from his bill: ‘For waking up at night and thinking about your case: $25.’”

Four Steps for Reining in Rent

Next to salaries, real estate can be one of the largest expenses a law firm faces—anywhere from 6.5 percent to more than 10 percent of annual revenue.

A Word About Bonuses
Associate bonuses run the risk of becoming so routine that they are perceived as deferred salary. Bonuses can also be so arbitrary that there is general confusion as to why they are given in the first place. On the other hand, they can be so small relative to the effort to earn them that the bonus actually creates a disincentive to perform.
 

Retirement Issues:
Balancing the Risks of an Unfunded Plan

Unfunded retirement plans are unique to professional firms. They are essentially a promise to pay partners a retirement benefit from the firm’s future profits.
 

 
Fall, 2006
In this issue:

 How Much is Enough?
Key Factors for Determining Partner Compensation

“I'm beginning to think that my lawyer is too interested in making money.”
“Why do you say that?”
“Listen to this item from his bill: ‘For waking up at night and thinking about your case: $25.’”

Four Steps for Reining in Rent

Next to salaries, real estate can be one of the largest expenses a law firm faces—anywhere from 6.5 percent to more than 10 percent of annual revenue.

A Word About Bonuses
Associate bonuses run the risk of becoming so routine that they are perceived as deferred salary. Bonuses can also be so arbitrary that there is general confusion as to why they are given in the first place. On the other hand, they can be so small relative to the effort to earn them that the bonus actually creates a disincentive to perform.
 

Retirement Issues:
Balancing the Risks of an Unfunded Plan

Unfunded retirement plans are unique to professional firms. They are essentially a promise to pay partners a retirement benefit from the firm’s future profits.
 

 
Summer, 2006
In this issue:

 Knowledge and Relationships:
Making CRM Work At Your Firm

Firm-wide Client Relationship Management (CRM) systems are designed to maximize a law firm’s collective knowledge about its clients and relationships. Problem is, the notion of collective knowledge flies squarely in the face of how many firms and lawyers think. Indeed, while other industries and professions have broadly adopted CRM systems, law firms have been slow to accept them.

E-Discovery: Do Your Clients Know the Rules?

Data spoliation and email/voicemail discovery rules … you understand them, but do your clients? A client who doesn’t can very well hamper its own defense and run up huge expenses.

Client Intake: 5 Questions to (Always) Ask
Not all clients are worth having. There, we’ve said it.

1031 exchanges: Are You Truly Neutral?

With the increasing popularity of Section 1031 “like-kind exchanges,” more and more attorneys are becoming involved. But the rules are complex, and the Internal Revenue Service and the Tax Court have made it clear that the legal requirements for a successful exchange must be followed carefully and strictly.

 
Spring, 2006
In this issue:

 Managing For Success:
Workforce Alignment Can Make The Difference

A substantial and rapidly expanding body of evidence points to a strong connection between how a law firm manages its people and its economic success. Utilizing a concept known as workforce alignment, some firms are producing greater client value simply by having the right people in the right places doing the right things.

Disaster Planning Post-Katrina:
What’s A Firm To Do?

Watching the devastation heaped upon the Gulf Coast was certainly a wakeup call for law firms and businesses across the country. Yet, studies show that fewer than 25 percent of businesses have a disaster recovery plan in place.

Counselor, Cover Thy Assets!

Don’t think anyone is interested in your assets? Think again! As a member of the legal profession, you are particularly vulnerable. You probably have substantial assets and are involved in complex business arrangements. And, like many attorneys, you may be so busy protecting your clients’ interests that you neglect your own.
 

 
Summer, 2006
In this issue:

 Knowledge and Relationships:
Making CRM Work At Your Firm

Firm-wide Client Relationship Management (CRM) systems are designed to maximize a law firm’s collective knowledge about its clients and relationships. Problem is, the notion of collective knowledge flies squarely in the face of how many firms and lawyers think. Indeed, while other industries and professions have broadly adopted CRM systems, law firms have been slow to accept them.

E-Discovery: Do Your Clients Know the Rules?

Data spoliation and email/voicemail discovery rules … you understand them, but do your clients? A client who doesn’t can very well hamper its own defense and run up huge expenses.

Client Intake: 5 Questions to (Always) Ask
Not all clients are worth having. There, we’ve said it.

1031 exchanges: Are You Truly Neutral?

With the increasing popularity of Section 1031 “like-kind exchanges,” more and more attorneys are becoming involved. But the rules are complex, and the Internal Revenue Service and the Tax Court have made it clear that the legal requirements for a successful exchange must be followed carefully and strictly.

 
Winter, 2006
In this issue:

 Divorce Detectives:
Forensic Accounting And Matrimonial Litigation

Among the many emotional accusations made during a divorce, one of the more devastating is that marital property is being hidden — from cooked company books to cash-stuffed suitcases.

Book Report:
Maister’s True Professionalism

Sometimes a classic deserves a revisit. Such is the case with David H. Maister’s True Professionalism: The Courage to Care About Your People, Your Clients, and Your Career.

Deferred Fee Arrangements … A New Day Dawning?

As long as there have been financial settlements, there have been attorneys wishing to structure their contingent fee arrangements to defer that income. The idea is certainly a good one: Why take a sizeable tax hit if you can defer and soften the blow over time?

 
Fall 2005
In this issue:

 Out-Of-Pocket Expenses:
What’s Deductible (And When)

It happens every day in law firms across the country: Attorneys dig into their own (or their firm’s) pockets to cover litigation costs — filing fees, delivery costs, copying expenses. Oftentimes, there is no retainer to draw from — the money may be spent under a contingency fee arrangement or simply for an established client who has a sudden emergency.

Fraud And The Forensic Accountant

With the recent surge in high-profile white-collar crime, forensic accounting has suddenly found itself thrust into the spotlight. While it certainly doesn’t run the risk of becoming “sexy,” ala the incredibly popular crime scene forensics dotting prime time television, this specialized area of accounting is receiving newfound attention.

The 5 Ws Of Telecommuting

Will telecommuting be the wave of the future for the legal profession?

Retirement Planning: Who’s Going To Feather Your Nest?

Many attorneys earn a substantial income and live quite well during the course of their law practice. Unfortunately, a lawyer’s currency — his or her skills and experiences — aren’t tangible assets that can be readily used to feather a retirement nest … they retire with the attorney.

 
Summer 2005
In this issue:

 So, You Want To Be An Elder Law Attorney?

A 2003 AARP survey found that less than half of people age 45 and older hold a durable power of attorney for health care decisions. The survey also found that lawyers are the most popular choice for preparing these documents.

Issues In Elder Law

Don’t Leave An “E-Trail”
The Importance Of An Electronic Document Policy

Unlike shredded or destroyed documents, electronic data isn’t always “gone” when it’s deleted. You can trash it all you like — even reformat hard drives — but a sharp forensic technologist may still be able to recover the data.

The Basics Of Backing Up

Forensic Accounting: Establishing Value In Dissenting Shareholder Cases

Dissenting shareholder issues can be incredibly complex matters. To strengthen their cases, many attorneys enlist the services of a forensic accountant.

Pros And Cons Of Family Limited Partnerships

A Family Limited Partnership (FLP) can be an incredibly useful entity structure — in certain situations.

 
Spring 2005
In this issue:

 Record Retention: What To Hold, When To Fold

When DuPont went through an enterprise-wide reorganization of its corporate records, the company discovered to its great chagrin that more than 50 percent of the documents the company gathered for discovery between 1992 and 1994 should not have been retained. It estimated that it had spent $10-$12 million in unnecessary retention and production costs. Ouch.

Elder Law: The Issues (And Opportunities).

The aging of America has had — and will continue to have — a significant impact on government, politics, communities, families and business. Quite simply, people are living longer. The number of people 65 years of age and older is expected to double by 2030, and many experts are concerned that aging issues will reach a critical point as early as 2010, when the “baby boom” generation first starts to reach retirement age.

Issues In Elder Law

Sometimes a law firm's technical financial resources get stretched too thin during litigation (or are not there in the first place). The good news is that an experienced CPA can provide invaluable support throughout the entire litigation process - from pre-trial discovery and interrogatories to settlement support. In fact, litigation support is more than just a gavel-to-gavel affair. It comes into play long before the trial begins and often continues well after the court has adjourned.

Dust Finally Settles On Contingency Fee Question

A recent Supreme Court Decision and a new tax law have only added to the confusion surrounding the taxability of attorney contingency fees as of late. Fortunately, the dust appears to be finally settling. Here’s what we know.

 

 
Winter 2005
In this issue:

 "What Do You Mean We Can't Afford It?"
The Difference Between Cash Flow And Profit

Attorneys are attorneys, not accountants, so it's an understandable question. But knowing the answer is absolutely vital to the success of your law firm. Bear in mind that more businesses fail for lack of cash than for want of profit.

Tired Of The Bleeding?
A Health Savings Account Might Stem The Flow

It's the topic du jour at many a partner's meeting - the hemorrhaging due to rapidly rising health care costs (estimated to be rising at 12-15 percent a year). There's no doubt, it's "code blue" time at many law firms. In fact, many cite the high cost of health insurance as a reason they've been loath to add staff, even as business picks up
 

Technical Financial Issues:
Know When To Call In The Cavalry

Sometimes a law firm's technical financial resources get stretched too thin during litigation (or are not there in the first place). The good news is that an experienced CPA can provide invaluable support throughout the entire litigation process - from pre-trial discovery and interrogatories to settlement support. In fact, litigation support is more than just a gavel-to-gavel affair. It comes into play long before the trial begins and often continues well after the court has adjourned.

Cash Flow: It's All In The Timing

Ideally, during a normal business cycle, your firm should have more money flowing in than flowing out. The following simplified example, however, illustrates clearly how a law firm can run into a cash flow crunch.

Other Cash Flow Killers

There are plenty of poor business practices that can put your cash flow at risk.

Best Practices In Realization

In a law firm, getting paid is only half the battle … getting paid at the proper rate is the other half! (It's a hollow victory to get that lagging client to finally settle up - at a discounted $150 an hour instead of your standard $250 rate.)

 
Fall, 2004
In this issue:

 The Great Law Firm Bust: What Happened?
(And What We Can Learn)

Brobeck Phleger & Harrison L.L.P., with 550 attorneys across the law firm, including offices in Dallas and Austin, is closing its doors - the latest casualty of the high-tech slowdown.
Dallas Morning News, January 31, 2003

The Facts On Alternative Dispute Resolution

Approximately 85% of mediations administered by the American Arbitration Association result in a settlement.

The CPA As A Dispute Resolution Professional

The next time you're faced with a mediation or arbitration situation, consider adding an accounting professional to the equation.

It's All In The Metrics

With all these post-mortem horror stories in mind, accurate and applicable revenue metrics seem more critical than ever. Note that the key words here are accurate and applicable.

Best Practices: 6 Tried-And-True Time Management Tips

More billable hours and more time for my personal life? What magic lamp do I have to rub for that miracle? Well, in lieu of the lamp, get your hands (and head) around some of these tried-and-true productivity enhancers:

 
Summer, 2004
In this issue:

 FAS 150 and the Case of the Mysterious Disappearing Equity
Quick: How do you take a $2 million company and turn it into a big, fat balance-sheet zero overnight?

FAS 150 Action Plan

Scheduling: Are You Giving Associates Their Turn at Bat?

 Some unfortunate law firms are hemorrhaging associates in the 30 to 40 percent range - not a pretty picture when you consider the inevitable financial, cultural and client relations hit to the practice. And departing associates are telling their former firms, "It's not the money. I just wanted my turn at bat."

"Sarbanes-Oxley Made Me a Snitch"
(And Other Myths from a Post-Enron World)

Like a juicy urban legend, misconceptions over Sarbanes-Oxley continue to swirl across the legal landscape. Misconception mania reached a fevered pitch this past fall and winter as final rules were promulgated - and the ABA weighed in with some hotly debated Model Rule changes.

Sarbanes-Oxley Brain Twisters
 
Spring, 2004
In this issue:

 3 Steps for Making the Relationship Work
To reap the most benefits when working with your economic expert, consider these steps:

Best Practices: Tighten up on Collections

The unfortunate truth is that many law firms struggle with collections, expending valuable time and resources collecting or chasing their fees. Take a minute to review these best practices to ensure that your practice gets it's due.

Calculating Lost Profits in an Infringement Action: A CPA Can Help

 Forget about, "Who moved my cheese?" In today's business world, a more likely refrain would be, "Who infringed on my recipe for cheese?"

Estate Planning Update: New Thoughts for the New Year

Talk about starting the new year on an up note: The feds boosted the personal estate tax exemption to a whopping $1.5 million. Happy New Year!
 
Winter, 2004
In this issue:

 The Latest Federal Tax Package: What’s in It for Me?
 The 2003 Jobs and Growth Tax Relief Reconciliation Act contains no tax increases and provides several benefits to investors and small business owners. Among the most prominent provisions is the acceleration of individual income tax rate cuts, which drops the maximum tax rate on ordinary income to 35%. Small business owners can take advantage of the dramatic jump in the amount of the Section 179 deduction, which allows them to deduct the entire cost of new and used personal property assets in the year they’re placed into service

Effective Use of Legal Assistants Can Boost Productivity, Profitability

Using paralegals effectively can significantly boost a firm’s profitably and, for smaller firms, reduce the need for associate attorneys. But paralegals need to feel as if they’re part of the legal team. One solution is to designate a paralegal coordinator who is responsible for the hiring, development, training and optimization of the paralegals.

The IRS Audit: What Should You Do?

 Knowing the financial areas likely to be targeted in an IRS audit can help law firms take preventive steps to protect themselves. Firms should exercise particular caution in the areas of client advances, client trust accounts, employment taxes, and partner tax returns.
 
Fall, 2003
In this issue:

Effective Firm Planning Starts With a Budget
Detailed financial budgets can prove to be among a small firm’s most effective planning tools. A budget provides the foundation for formulating revenue and staffing goals, and an opportunity to review expected expenses in advance.

Fighting Employee Fraud in Law Firms

While attorneys often advise their clients on matters related to employee fraud, they may overlook the fraud going on in their own firms. Yet law firms can significantly reduce the costs of fraud with some simple measures such as segregating their cash-related functions.

CPAs Provide Benefit to Attorneys in Divorce Cases

Experienced CPAs prove valuable to divorce attorneys in multiple ways. Attorneys can leverage a CPA’s expertise in tax law, business valuation, accounting and forensic accounting to secure the most advantageous result for their clients.

IRS Wins Family Limited Partnership Case
More taxpayers have turned to family limited partnerships as a vehicle to transfer assets to the next generation while retaining significant control of the assets during their lifetimes. A recent Tax Court decision, however, indicates the IRS may have a stronger argument against these arrangements in some cases, thereby eliminating some of their advantages.
 

 
 

 

Summer, 2003
In this issue:

Making Law Firm Mergers Work
 
Law firm mergers have become increasingly common, and rough economic times are prompting even more firms to consider the move. Before embarking on such a major undertaking, firms need to carefully consider several issues.


Law Firm Disaster Plans: Preparing for the Unthinkable

Since Sept. 11, law firms across the country have come to recognize the importance of having a comprehensive disaster plan in place. These plans should be reviewed regularly to assess their validity in light of external and internal developments and to ensure that they continue to effectively address a number of critical areas, including the protection of documents, computers, and data, insurance, and staff security.

Courts Split on Handling of Contingent Attorney Fees

Attorneys who work on a contingency fee basis are likely aware of the disparity among the federal courts regarding treatment of these fees. Depending on where the client lives, attorneys may be able to secure a favorable outcome for themselves by carefully drafting the original contingency agreement.

CPAs Add Value in Estate Planning

Estate planning attorneys often find a CPA can be a valuable member of their team. CPAs can enhance the estate planning process in several ways. CPAs frequently act as proactive facilitators between attorneys and clients.


 

 
 

 

Spring, 2003
In this issue:

"Counseling Clients under the Sarbanes-Oxley Act"
While the Sarbanes-Oxley Act currently affects only public companies, some experts predict that its provisions will trickle down to nonpublic companies as well. As clients struggle to comply, their counsel will need to meet with boards of directors and offer advice on, among other things, establishing and operating audit committees.
"IRS Offers Relief for Delinquent Pension Plan Filers"
The Internal Revenue Service (IRS) has announced incentives designed to encourage pension plans to satisfy their filing requirements. Because the IRS and the Department of Labor have recently increased their efforts to crack down on violators, plan administrators who have not filed timely annual reports should take advantage of the relief offered by the IRS.
"Getting the Most from the CPA Expert"
Attorneys can secure the greatest benefit for their clients by educating themselves on the use of CPA experts. To reap the most benefit from a CPA, however, an attorney must involve the expert as early in the process as possible.

Mining Tax Returns for 'Gold'" 
Income tax returns can prove to be valuable tools in some common types of litigation, particularly matrimonial and shareholder disputes, if the expert knows what to look for and where to look.
 

 
 

 

Winter, 2003
In this issue:

"Opening an Affiliated Business: Key Considerations"
Affiliated businesses present an attractive option for increasing a law firm’s revenue, but firms shouldn’t enter an affiliate relationship blindly or hastily. Several areas deserve consideration before a final decision is made..

"Federal Court Rules Against IRS on Individual Liability of Partners"
In In re Galletti, the Ninth Circuit Court of Appeals found that the Internal Revenue Service could not collect the partnership’s tax debt from the individual partners who composed the partnership

"Choice of Entity for Law Firms: One Size Doesn't Fit All"
When electing an entity form, law firms must be aware of tax implications and limitations imposed by state laws.

"Forensic Accounting: Digging a Little Deeper"
When reading a valuation report, attorneys shouldn’t just accept the assumptions an expert made. If the expert hasn’t supported his or her assumptions by reliable, verifiable means, the results could be costly.