One of the most common
mistakes that law firms make is not doing a proper analysis of their financial
numbers. By using key financial ratios and comparing your numbers to other law
firms, you can determine exactly how well you're operating. National law firm
statistics are available from a variety of sources and are excellent benchmarks to gauge
your progress. Three years of financial data can tell an enormous amount, not only
about your past but also about where you are heading.
Check your key ratios at least
once a quarter and compare the results with other law firms your size. Then project
your course for the year.