lamp - Texas Bar Practice

Prepare a Cash-Flow Budget for a Start-Up Law Practice

HOW TO PREPARE A CASH-FLOW BUDGET FOR A START-UP LAW PRACTICE×Print PDF version Of This HOW TO GUIDE. Introduction With the aid of low-cost electronic spreadsheet applications the budgeting process has become less of a dreaded task. These software applications substantially reduce the work required to summarize and analyze financial data. However, the thought process which produces the data to be entered into the spreadsheet remains the same. There are two basic types of budgets. The accrual budget, which takes accounts receivable, accounts payable, depreciation and amortization and other non-cash items into consideration, and the cash budget. For purposes of this document we will only work with the cash budget. By establishing your cash income and cash outflow budget you will be better able to direct where you do and do not spend your funds. The budgeting process will also focus your thoughts on how much it will cost to operate and manage your practice. Use your budget as a management tool, as well as an internal control tool. On a monthly basis you should compare your actual numbers with your budgeted numbers. Monthly revisions will enable you to change directions and to be prepared to meet your anticipated needs …

lamp - Texas Bar Practice

Draft an Employee Handbook

How to Draft an Employee Handbook×Print PDF version Of This HOW TO GUIDE. Introduction An Employee Handbook should be tailored to the individual needs of the employer and the employer’s management style. It is to be used as a guideline and should never be interpreted as a form of an Employment Contract. These guidelines are utilized by both the employee and employer as a means to ensure consistency in matters of office policy.Your initial steps should include: 1. Determining the Purpose of the Handbook Recruitment information Referral source for employees, i.e., history of the firm, etc. Standardization of policies and procedures to ensure consistent application of work rules Legal compliance with non-discriminatory laws and Worker’s Compensation and OSHA Brief guidelines providing information to employees while preserving flexibility 2. Instructional Information that Everyone can Follow: Be careful to cover all employees equally Be clear and concise in developing and implementing office policies that you and/or your firm’s management can follow Clearly define “full-time”, “part-time” and “temporary” employees and what benefits may or may not apply to each. Refrain from using the term “permanent employee”. Remember that Texas is an employment-at-will state, unless a written Employment Contract is entered into. Do not …

lamp - Texas Bar Practice

Set Billing Rates

How to Set Billing Rates×Print PDF version Of This HOW TO GUIDE. Introduction Today’s market and the increased client sophistication when selecting legal services, are making it necessary to carefully evaluate billing practices. Whether you prefer task based billing, value billing, hourly billing or other alternative billing methods, it is crucial to know the actual cost of each billable hour. Only after you have determined the cost of each billable hour, will you be able to structure your fee arrangements. The calculations below show you where the break-even point is, as well as your profit margin. Following is a sample calculation based on a solo practitioner with a monthly salary of $8000 and an assistant’s monthly salary of $2500. The office rent is estimated at $2500, a part-time runner/clerk at $500 and taxes, insurance, supplies, etc. at a total of $2600 per month. Formula for Solo Practitioners (May be Adjusted for Groups) Example: Total monthly expenses: $16,100.00 less attorney’s salary: $8,000.00 Overhead costs: 8,100.00 divided by billable hours: 160 hours Overhead cost per billable hour $50.63 plus attorney’s rate (8000:160) $50.00 Total cost per billable hour: $100.63 Conclusion This calculation results in a cost of $100.63 per billable hour. If …