The Association of Legal Administrators, Metropolitan Detroit Chapter, will host a workshop on the topic of "Double Your Profits Without Working Twice as Hard" Wednesday, October 13, from noon to 1 p.m. at the Skyline Club, 2000 Town Center in Southfield.
Most law firms do not believe that cost accounting applies to them, that it applies only to other industries like manufacturing. It is also a common assumption to think that if a law firm wanted to double its profits, that it would have to either double its billable hours or billing rates. With an appropriate cost accounting system and profit plan, that is not the case.
It is crucial for all law firms to implement a cost accounting system to understand their own business. How can you tell if a client, producer, division, or office is profitable? Cost accounting can provide you with the answers to those questions. Many law firms face the same challenges when making management decisions, such as allocating overhead and establishing billing rates. These challenges can be overcome by understanding the costs associated with each producer. After understanding a firm's costs, all law firms should establish a profit plan.
In this workshop, attendees will get a hands-on learning experience that will teach the fundamentals of understanding cost accounting as it relates to law firms. Participants will also learn the practical steps it takes to create a profit plan that works toward a firm's revenue goals.
Learning objectives include:
1. Illustrate how to implement a cost accounting system.
2. Show how to establish cost-per-hour for each producer.
3. Identify profitability by producer, client, division, and office.
4. Examine how to establish a profit plan for a law firm.
Speaking at the workshop will be Samuel J. Catanese, leading partner of Catanese Group, a CPA and business advisory firm located in Western Pennsylvania. Catanese is an expert in the management and administration of professional service companies and often performs profit plan engagements. These engagements involve evaluating the administrative and management procedures of the firms under review and working with owners and managers to formulate efficient and effective operating systems. Catanese developed his cost accounting and profit planning system while at Harvard Business School. Catanese is a frequent lecturer on topics such as strategic planning and business consulting.
The workshop will serve a plated lunch. Menu choices will be sent out ahead of time for all those who register. Tickets for the workshop are free for ALA members and business partners, and $25 for guests. To register, visit https://aladetroit.org and click on "events."
