Financial Planning - Budget to Actual Analysis

Very few small law firms understand the importance of financial planning and instead judge their performance by their current cash position. A vital role for the virtual administrator is to discuss with the attorney their short and long-term goals and develop a budget required to meet them. Thereafter the virtual administrator can monitor the firm's actual performance against these developed expectations and advise the attorney of variances.

  • Attorney Productivity: If attorneys are serious about improving productivity, it's important to be able to evaluate actual performance against developed expectations. L.A.W.S./Pro provides the means of implementing performance standards by attorney. Managerial reports may then be generated comparing actual performance to these developed expectations. The appropriate measures may be then be implemented to address and rectify negative variance.
  • Financial Budgeting: L.A.W.S./Pro provides the means of implementing a financial budget which compares actual firm performance to developed expectations. Budgets are planning tools. They force the firm to think about how it expects to perform and what it will cost to reach those expectations. Without a budget, small firms can easily lose direction and a valuable means of gauging performance.
A Virtual Administrator can discuss the desired goals of firm, then develop a budget required to attain those goals. Thereafter, the Virtual Administrator can monitor firm performance and discuss with the attorney policies and procedures to address negative variances.

 
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Planning tools - Budgets are planning tools. They force the firm to think about how it expects to perform and what it will cost to reach those expectations.
 



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