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.
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.
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John W. Olmstead, MBA, Ph.D, CMC
Posted at 09:54 AM in Financial Management
Tags: Financial, Firm, Indicators, Law, Performance, Small