Attorneys don’t need more spreadsheets—they need the few metrics that actually move profit. Start with these nine, reviewed monthly:
- Utilization rate – % of work hours billed to matters.
- Realization rate – % of billed time collected after discounts/write-downs.
- Collection rate – % of invoices collected on time.
- Average case value – track by practice area.
- Client acquisition cost (CAC) – marketing + sales cost per new matter.
- Matter cycle time – open to close; shorter cycles improve cash.
- Operating margin – profit after overhead (by practice area if possible).
- AR days – how long invoices sit unpaid; set thresholds for follow-up.
- Trust compliance status – monthly three-way reconciliation completed? Exceptions cleared?
Firms that monitor these metrics consistently grow faster and collect more reliably. Benchmarks from industry leaders like Clio and Thomson Reuters show how top performers maintain higher utilization/realization and stronger collections—because they watch the numbers and act early. Build a simple dashboard, review it with your bookkeeper monthly, and set one improvement target per quarter.
Need a plain-English KPI dashboard you’ll actually use? Book a Financial Clarity Call.