« | Main | »

Oct 03, 2018


Small Law Firm Financial Performance Indicators

Question: 

I am the owner of an estate planning firm in Milwaukee, Wisconsin. I have five associates and four paralegals working in the firm. More of my time is spent on managing the practice and marketing than on servicing clients. I am trying to develop financial goals for the firm but I am clueless as to what financial indicators or ratios I should be looking at and what constitutes good or bad performance. Anything that you are willing to share would be appreciated.

Response: 

Here are what I believe to be key financial indicators/ratios and performance for a firm of your size and type:

I like to see profit margin – owner compensation – salary if paid as w-2 wages plus profit in the range of 35% – 45%.

Performance can vary by type of practice.

Click here for our financial management topic blog

Click here for our law firm profit improvement blog

Click here for articles on other topics

John W. Olmstead, MBA, Ph.D, CMC


Posted at 09:54 AM in Financial Management
Tags: Financial, Firm, Indicators, Law, Performance, Small

    Subscribe to our Blog