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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.
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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.
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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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More Info
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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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