Healthy profit margin benchmarks

In episode 595 of the Lawyerist Podcast, we’re revisiting Stephanie’s conversation with Lawyerist financial coach Bernadette L. Harris about the financial KPIs every law firm owner should understand as a new year begins. We’re bringing this episode back because it’s especially timely for firms setting their strategy, goals, and financial benchmarks for the year ahead. It’s important to continue finding a clear, practical approach to understanding the numbers that drive a healthy firm. 

Unlock a clearer view of your law firm's financial health in the latest Lawyerist Podcast. Join host Stephanie Everett as she dives into the essential key performance indicators (KPIs) that can transform how you understand your practice, guided by the expert insights of Bernadette Harris, Lawyerist Lab's finance coach. 

You'll gain practical knowledge about five crucial areas that directly impact your firm's success. Understand your net profit margin like never before – not just the surface numbers, but the true profitability that informs your strategic decisions. Explore utilization rate and discover how to optimize your team's time for maximum productivity. Learn the critical importance of your realization rate and practical steps to ensure you're capturing the revenue you've earned. See how mastering AR aging can directly impact your cash flow and create financial stability. Plus, uncover the strategic advantage of understanding your revenue by practice area, empowering you to make smarter choices about your firm's financial future. 

For straightforward, actionable insights into these vital financial indicators – the kind that can immediately help you manage your law firm more effectively – tune in to hear Bernadette Harris share her expertise. 

Listen to our other episode with Bernadette Harris: 

• #457: Healthy Profits: Understanding the Story Your Numbers Tell, with Bernadette Harris Apple Podcast | Spotify |  Lawyerist 

• #523: Financial Red Flags: Are You Hiring Too Soon?, with Bernadette Harris Apple Podcast |  Spotify | Lawyerist 

• #418: More Income, Fewer Taxes, with Bernadette Harris Apple Podcast |  Spotify | Lawyerist 

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If today's podcast resonates with you and you haven't read The Small Firm Roadmap Revisited yet, get the first chapter right now for free! Looking for help beyond the book? See if our coaching community is right for you. 

Access more resources from Lawyerist at lawyerist.com. 

Chapters: 

00:00 Why We’re Remastering This Episode for the New Year
02:55 Law Firm KPIs and Financial Health
05:21 Net Profit Margin for Law Firms
09:38 Utilization Rate and Team Capacity
14:35 Realization Rate and Getting Paid
20:05 Accounts Receivable and Cash Flow
24:19 Revenue by Practice Area
27:16 Using Financial Metrics to Set Strategy