Edge International

Insights

The Erosion of the Billable Hour, or the “Dings”

The Erosion of the Billable Hour, or the “Dings”

All law firms determine and dictate the parameters of revenue: annual targets for billable hours and corresponding billing rate.

Then come the “dings” or revenue adjustments.

How much revenue are you giving away? What is the impact of all of these dings? And what is the year-over-year trend of these inefficiencies?

The table below is an illustration of the impact of all the dings. Reviewing this simple analysis on a regular basis is likely to significantly increase the efficiency of operations and enhance profitability.