May 12, 2023

Law Firm Financial Management - Software Applications with Peggy Gruenke

31 minutes

For today’s episode, Jared welcomes legal tech expert Peggy Gruenke who discusses the advantages of using cloud-based accounting systems like QuickBooks Online and integrating them with Law Practice Management software. She highlights the importance of maintaining accurate data and the need for training law firms and bookkeepers to use these systems effectively.

Peggy emphasizes the focus on financial management, tracking revenue and expenses, and monitoring KPIs such as billing and collections rates. She advises engaging a professional to assist with law firm accounting and finance for increased efficiency.

Episode Highlights 04:23 Debate between QuickBooks Desktop vs. QuickBooks Online and the advantages of using a cloud-based software system 07:01 The ease of transitioning from QuickBooks Desktop to QuickBooks Online. 09:57 Integrating accounting software and case management software, such as Clio and QuickBooks Online 11:00 The learning curve for law firms transitioning to new software and training needed by office managers 13:27 Building custom financial reports, particularly for compensating lawyers, and running trust account reports, including the trust three-way match report. 18:23 Tracking Work in Progress (WIP) and analyzing contingent work and hourly work for revenue generation 19:45 The importance of reviewing bank accounts and finances due to the increasing number of fraud incidents. 21:19 Key Performance Indicators (KPIs): Tracking accounts receivable, billing, and collections. 23:51 Utilization rate and its importance in law firm management 25:52 Expense tracking and focusing on growing revenue rather than cutting expenses 27:26 When should law firms engage a professional for financial management and advice?

Episode Resources