Category Archives: Ultimate Guides

Which Lawyers Make The Most Money?

If you’re getting into law just to make money, this may not be a career for you. Lawyers are responsible for working on some sensitive cases that can alter the outcome of people’s lives. Keeping this in mind, there is much more to the law than just money.

However, money is a motivating factor in any career. For recent graduates from law school with heavy debts, getting a good paying legal job is likely a top priority. Also, listening to an experienced lawyer with a six-figure salary might tell new associates not to worry about the money can be demotivating.

Instead, let’s take a look at which lawyers are making the most money.

High Paying vs. Low Paying Salaries

Whether working at a law firm or as a solo practitioner, lawyers, in general, make a decent amount of money.

According to the Bureau of Labour Statistics, these are some of the published salaries for lawyers in America. On the lower end, the average salary is just over $50,000. In comparison, some of the top paying salaries can earn over $200,000.

There are two major factors that influence the amount of money a lawyer earns which are location and area of specialization.

Highest Paying Cities for Lawyers

Depending on where you practice law, you could also earn more money. According to the BLS, the following states offer the highest salaries: California, New York, Florida, and Texas.

Highest Paying States for Lawyers

Some states have a higher salary than others. Here are the best paying states with the highest mean salaries according to the BLS: District of Columbia, California, New York, Massachusetts.

Highest Paying Industries for Lawyers

If you’re an in-house lawyer, you can earn more money depending on which industry they work for. Here’s the what the BLS says are the highest paying industries for lawyers: Scheduled Air Transportation, Industrial Machinery Manufacturing, Beer, Wine and Distilled Beverages, Semiconductors and Other Electronics.

Highest Paying Government Lawyers

There are some positions in government that pay significantly more than others. Public interest lawyers often have the lowest salaries whereas lawyers at the federal level can earn six figures. Here is a summary of the top paying government salaries for lawyers from the BLS: Federal Government, Local Government, State Government.

Highest Paying Law Firms

If you’re wondering which law firms offer the most money, that’ll depend on whether you are a partner or just an associate. The following law firms are some of the top-earning firms in America as of 2016: Latham & Watkins; Baker & McKenzie; Skadden, Arps, Slate, Meagher, & Flom; Kirkland & Ellis; and Clifford Chance.

Here’s a look at those numbers in more detail:

Firm
Name
Year Established Yearly Revenue Profit
Margin
Profit per Lawyer
Latham & Watkins 1934 $2.65B 50% $606,000
Baker & McKenzie 1949 $2.62B 35% $183,000
Skadden, Arps, Slate, Meagher, & Flom 1948 $2.41B 51% $727,000
Kirkland & Ellis 1909 $2.3B 55% $771,000
Clifford Chance 1987 $2.11B 36% $251,000


Source of Law Firm Statistics:
https://en.wikipedia.org/wiki/List_of_largest_law_firms_by_revenue

Solo Practitioners

What does the salary look like for a solo practitioner? Information for the amount of money earned by solo practitioners gets released each year by the IRS. Often, these lawyers have considerably lower salaries than those listed above.

In 2012, salaries were reported to be as low as $50,000. However, this amount is often seen as the starting salary for new solo practitioners.

The reason why solo practitioners have a lower salary could be due to the fact they are responsible for all aspects of their legal services. If it is not in their budget to hire legal staff to reduce time spent on menial tasks such as administrative and financial related duties, it can limit their salary.

On the other hand, there are various affordable solutions for lawyers to make their legal services more efficient and effective. Legal software help lawyers to free up more time to work with clients and network.

In addition, solo practitioners can be more successful at finding new clients if they have a website for their legal services and learn how to use online marketing.

One thing to remember is that pursuing a career in law should not be for the money. Instead, pursuing a business career may prove to be more lucrative if money is a lawyer’s true motivation.

What’s Inside A Lawyer’s Briefcase

Lawyer’s need the right tools to provide their legal services anywhere they have to go. From the office appointments to courtroom appearances having a full suite of supplies will keep a lawyer equipped for any situation.

If you’re soon to be associate at a firm or just a polished lawyer looking for a few new tools for the “toolbox,” here you will discover what’s inside a lawyer’s briefcase.

Digital Recorder

Although smartphones can provide this solution, some old fashion lawyers may still carry around a recording device. Recorders are important to make notes, collect thoughts and record instructions. If you happen to be one of those lawyers using a cassette tape to record, upgrading to a digital device can save a lot of time.

Digital Camera

If you’re required to collect evidence for a case, such as a car accident, having a digital camera is a must. There are many small and compact cameras that can fit inside a small inner compartment.

Smart Phone

You could probably eliminate all the previous items on this list by just using a smartphone. Calculators, recorders, and even matter management software can reduce the weight in lawyer’s briefcase. However, there could be privacy concerns if you’re using your personal phone for your clients. Designating a phone for your law practice can be a smart idea.

Cellular Headphone Set

Cellular headsets are great to have when reception is bad and a client makes an urgent call. These take up little space, however, using a clip from the office to bundle the wires is a smart way to avoid untangle them each time you pull them out.

Notebook Computer

A lawyer’s briefcase is usually designed to perfectly fit a notebook computer. If you’re carrying around your client’s notes, matter, and also a computer, you may want to get a briefcase with a shoulder strap to reduce the load.

USB Scanner

This may not be a common item found in a lawyer’s briefcase, but it can be useful if you’re always on the move. Having a USB scanner can put documents on your laptop whenever you need them. You can send priority documents to clients immediately after court hearings while waiting in the break room.

Stationary Supplies

All lawyers require the stationary supplies to be functional for their job. Pens, pencils, notebooks, and other essentials can be stored in designated compartments for quick and easy use. Don’t forget to replenish your supplies whenever they run out.

Legal Matter

Inside most briefcases, you’ll find a sleeve dedicated for loose papers and folders. Storing the necessary legal matter in these places not only protects the documents but can also keep them organized. However, if you’re caseload is very large, you may require a larger suitcase to handle the load.

Final Thoughts

A lawyer’s briefcase is more than just a bag full of tools to perform legal work. When going from the office to the courtroom, a briefcase provides a secure and safe way to transfer sensitive and private information. Having a briefcase with anti-theft features with tracking may be over the top, but in a worst-case scenario, you’d have no regrets.

One last thing to remember, especially if you’re using or own multiple briefcases, is to be sure to transfer the contents on one into the other. You may find yourself rushing out the door with the wrong briefcase and wonder why all your client files disappeared.

Top 7 Law Firm Accounting Software For Lawyers

Accounting programs for lawyers make your legal services run more effectively and efficiently. There are many accounting programs available and most are designed to improve time management, billing, accounting, and case management.

To save you time, here is a review of the top 7 law firm accounting software designed specifically for lawyers. Hopefully, you will find the best software program that is the right fit for your legal services.

#1: Clio

Clio’s focus is to reduce the number of time lawyers spend on administrative tasks. The best part about Clio is that you only need to pay for the monthly subscription. After you subscribe, you won’t need a network administrator to maintain the software and you can run it on your PC or mobile device.

In regards to security, Clio’s cloud-based allows you to store sensitive information on your computer while being accessible to you anywhere.

Clio is one of the most simple accounting software programs for lawyers by handling all your basic administrative tasks while on the go.

Features:  

  • Matter Management
  • Time Tracking
  • Billing
  • Client Payments
  • Legal Accounting
  • Calendar
  • Lead Tracking
  • Document Management

Pricing starts at $39 per month and you can get started with a trial using just your email.

#2: Xero

Xero has been rising in popularity in recent years and has been in competition with QuickBooks (#5 on this list).

Xero features an easy-to-use software service because it is entirely web hosted. There is no downloads or installations required. You can access your accounting information from any device and all browsers (Google, Firefox, Windows, etc.).

With a subscription to Xero, you can add unlimited users to manage your accounting. There is no additional fee for users which is common in other accounting software services on this list.

The highlighting feature of Xero is that is most useful for small law firms and includes comprehensive user guides as well as responsible customer support.

Features: 

  • Payroll Management
  • Unlimited Users
  • Expense Tracking
  • Invoicing and Billing
  • Customizable Reports
  • W2’s and 1099’s
  • Direct Deposit

Xero’s starter plan limits you to 5 bills and 20 bank transactions. However, you can try their software free for 30 days.

#3: Bill4Time

Bill4Time is a dedicated billing software solution for lawyers. They focus on providing law firms with the ability to create professional invoices quickly and easily.

Clients will have the option to pay online which will be tracked and recorded on the dashboard. Bill4Time accepts Paypal, Stripe, and all major credit cards. From a billing perspective, Bill4Time makes client billing seamless.

Features:

  • Client Billing
  • Time Tracking
  • Invoice Templates
  • Client and Account Management
  • Reporting
  • Online Payments
  • Expense Tracking
  • Mobile Apps

Bill4Time’s starting price is focused on solo law practitioners with more options for those running a law firm with multiple partners. You can also sign up to try Bill4Time for 30 days.

#4: Legal Files

Legal Files provides case management and matter management solutions to improve a law firm’s legal management needs.

Legal Files is commonly used by corporate legal departments, law firms, university legal departments, insurance companies, and various levels of government.

Its features allow lawyers to manage their cases, emails, documents and contracts, contact information, e-billing, and invoicing. Legal Files’ key feature is that it allows lawyers to automate their office workflow to free up time for lawyer’s to dedicate to their clients.

Features:  

  • Corporate Matter Management
  • Government Case Management
  • University Matter Management
  • Insurance Litigation Management
  • Contract Management
  • Law Firm Case Management
  • Investigation Management
  • Legal Aid Case Management

Legal Files offers pricing licensing packages with a one-time payment. You’ll have to contact the company for more information on a package that suits your firm.

#5: QuickBooks

QuickBooks made the list because it provides a powerful accounting software solution for every industry. It has detailed reporting metrics allowing you to capture the costs of all your firm’s activities. From gas mileage to expenses to payroll, QuickBooks does it all.

QuickBooks for its well-rounded accounting solutions and robust set of features. They have an as strong reputation and have been in operations since 1983.

While the capabilities of using QuickBooks and all its add-ons may seem overwhelming, their user interface and customer support make integration into your law firm’s accounting needs simple and straightforward.

Features:  

  • Cash Flow Control
  • Expense Organization
  • Spending Automation
  • Custom Invoicing
  • Easy Payment Solutions
  • One-click Reporting
  • Multiple-user Access
  • Payroll Solutions
  • Taxing

QuickBooks has some of the most affordable pricing plans for their accounting software. You can save 50% by purchasing right away or start with a trial for 30 days. There are also additional add-ons such as Enhanced Payroll ($19/month) and Full-Service Payroll ($49/month) available for the Simple Start, Essentials and Plus plans.

#6: PCLaw by LexisNexis

PCLaw by LexisNexis is a trusted software management solution used by over 15 000 law firms. It offers complete control over your billing and lets you charge for the time effectively.

PCLaw is a robust accounting software for lawyers and is streamlined toward accurate billing through their Time Entry Advisor.

Installing PCLaw just takes minutes and all upgrades are managed within your maintenance plan. For a worry-free, lawyerfocused accounting software, PCLaw would be a great choice.

Features:  

  • Accurate Time Tracking
  • User-Friendly Interface
  • Billable Hours Tracking
  • Accounts Payable, Receivable, and Banking
  • Financial Reporting
  • Trust Accounting
  • Advanced Security Settings
  • Visual Analytics

#7: ProLaw by Thomson Reuters

Thomson Reuters is a dedicated and trusted intelligence technology company that has developed ProLaw specifically for lawyer’s accounting needs.

This accounting software is suitable for mid- to large sized law firms. Their suite of accounting solutions provides expense management along with mobile tracking for lawyers who spend time working on cases remotely.

Like other law firm accounting software on this list, ProLaw offers custom invoicing, accurate tracking, and document management. The program is more sophisticated than others here but their training modules and both online and email support provide you with the help you need to get set up.

Features:  

  • Case and Matter Management
  • Secured Data Storage
  • Financial Reporting (1099s, Budget, Billing, etc.)
  • Cost Recovery
  • Expense Tracking
  • Calendaring & Docking
  • General Ledger
  • Online Bill Payments
  • Billing and Invoicing
  • Bank Reconciliation
  • Accounts Billable and Receivable

To start using ProLaw, you’ll have to contact their sales team for a quote.