lamp - Texas Bar Practice

Set Up Your Client Trust Accounts

How to Set Up Your Client Trust Accounts×Print PDF version Of This HOW TO GUIDE. Introduction The Texas Equal Access to Justice Program is designed to provide funds to be used for indigent legal services. As a result, the IOLTA (Interest on Lawyers’ Trust Accounts) was implemented. IOLTA provides that attorneys must deposit all client funds, which are nominal in amount or reasonably anticipated to be held for a short period of time, into a single interest bearing account. The bank, or other financial institution where the account is maintained, sends the earned interest directly to The Texas Equal Access to Justice Foundation. The Foundation distributes the funds to legal service providers around the State who are providing legal services to the indigent people of Texas. Each licensed attorney, if handling client funds, is required to set up a separate IOLTA trust account. While it is permissible to use one IOLTA account for all clients, it is necessary to keep accurate and detailed records on transactions for each client. A separate interest bearing non-IOLTA trust account must be established for client funds to be held for a longer period of time, which are expected to earn interest in excess of …

maintaining - Texas Bar Practice

Document Client Expenses and Attorney’s Fees

How to Document Client Expenses and Attorney’s Fees×Print PDF version Of This HOW TO GUIDE. Introduction In order to accurately account to your client, you should keep track of client expenditures, your fees charged and fees paid. There are very few, if any, courses in law school that teach you to keep track of time and client expenses. Gathering information for billing purposes is, however, important to the survival of a law firm. It is imperative that effective systems are in place to make sure that all expenses and fees are documented. Time Keeping Tips Everyone in the firm should be taught to consistently keep time records. Regardless of how you set your rates—even in flat fee cases–you should still keep up with your time and your firm’s work on each case. Many reasons exist for this, the least of which is so that you can document later to your client (or to the State Bar Grievance Committee) if the client ever complains that you did not “do anything” on his/her case. Even if your cases are contingency fee based, the Courts may require an accounting and/or justification of client costs and attorney’s fees. If you have a system in …

growing - Texas Bar Practice

Implement Law Office Marketing Strategies

How to Implement Law Office Marketing Strategies×Print PDF version Of This HOW TO GUIDE. Law office marketing plan The purpose of a law office marketing plan is to help identify and cultivate your client base by implementing strategies to rouse interest in your services. This checklist is designed with the intent to assist attorneys in the objective of implementing and recording the progress of marketing their practice. All of the strategies should be evaluated with the goal of getting word out about you and your service to current and potential clients. To what extent any of the following can help you achieve your marketing efforts will vary according to practice area and individual application of strategies listed. Start by reviewing your current marketing plan and adjust your overall business plan accordingly. Make certain your marketing efforts do not conflict with current advertising rules or rules of Professional Conduct. Strategies Complete the following sentences then highlight the strategies below that meet your goals. As you accomplish each goal every month, write down the date in the column to the right. Periodically review and adjust your goals to meet changes in your practice. To date my marketing plan involves…  My goals from …

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Become an Employer

How to Become an Employer×Print PDF version Of This HOW TO GUIDE. By Penny RobeIntroduction It’s no mystery why many sole practitioners insist on doing everything themselves. Your business’ survival depends on hiring the right people. Finding the best employees can be tricky, and without the right systems in place to meet employment laws, the hiring process can even have disastrous consequences. Consider the following items to help you navigate the hiring process that you as an employer will be responsible for. Employer Identification Number  One of the first steps necessary for employers is to obtain an Employer Identification Number, also known as a federal tax identification number, which is used to identify a business entity. You can apply for a number by filling out IRS Form SS-4 or download at www.irs.gov. Employment Eligibility Verification  As an employer you are required to have on file an Employee Eligibility Verification I-9 Form for every employee. These must be completed within three business days of hiring an employee. The Bureau of Citizenship and Immigration Services (BCIS), formerly known as the Immigration and Naturalization Service (INS), has the forms available by calling 800-375-5283 or downloading them at http://www.uscis.gov. Reference Checks  As an employer you should …

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Evaluate Your Office Leasing Needs

How to Evaluate Your Office Leasing Needs×Print PDF version Of This HOW TO GUIDE. Introduction Leasing smart is an intregal part of your practice being on the Road to Success! Office space is often the second largest operating expense of most law firms today. If that is your case, perhaps it is time to renegotiate or find lease space more in line with the needs of your firm. Plan for the future. Make sure your lease takes into consideration your firm’s future needs. While taking our suggestions into consideration, please keep in mind that leasing requirements for each firm will vary. Helpful Lease Terms  Following are definitions of some commonly used lease terms. These definitions are meant to give you some foundation for evaluating a lease. Actual Rent is comprised of net rent plus operating expenses, and real estate taxes assessed on the building. Net Rent is the actual amount paid for the space. Operating Expense is the cost of operating the building. Be sure and set the operating expense high enough to prevent substantial increases in future years of the lease. Real Estate Taxes should be based on a fully occupied building and representative of other comparable buildings in the locality. Net Cost is the same as …

lamp - Texas Bar Practice

Write and Implement a Law Office Business Plan

How to Write and Implement a Law Office Business Plan×Print PDF version Of This HOW TO GUIDE. The purpose of business planning is to establish a common focus for action. This is done by: Clarifying goals Establishing measures of results Assessing resource distribution needs Unifying the firm to commit to a course of action Following are the most important steps to take in preparing to write your business plan: Get the Process Organized Why do it? What is it? Who will do what? Evaluation of the planning process Evaluate Your Competitiveness Who are our existing clients? What is our fee history? Are we using outside services? Are we recognizing opportunities for cross-selling? How much do we really collect? What are we capable of? What are our internal resources? Who are our competitors? What is our market? Why are they our competitors (experience, price, speed, etc.)? How do they affect our clients? What do we do for their clients? What is our technology situation? What type of systems do we use? What can we use our systems for? Do we need to upgrade? Are there any trends developing which may affect our clients – changing laws, economy, etc. Are there any …

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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 …

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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 …