Get Calculating Profitability

This guide provides a comprehensive overview of how to effectively fill out the Calculating Profitability form online. By following the steps outlined below, users can navigate through each section of the form with confidence and ensure accurate data input for profitability analysis.

Follow the steps to accurately complete the Calculating Profitability form.

1. Click the ‘Get Form’ button to obtain the Calculating Profitability form and open it for editing.
2. Begin by filling out the total expenses for the law firm in the designated field. Ensure that all data included is accurate and up to date.
3. Input the compensation for lawyers and paralegals in the respective fields, making sure to subtract their total compensation from the total expenses to calculate the firm overhead.
4. Calculate the total full-time equivalents (FTE) of fee-earners, which includes both lawyers and paralegals, and enter this number in the appropriate section.
5. Calculate the overhead per fee-earner by dividing the firm overhead by the total FTE fee-earners and input the result into the designated field.
6. For each individual group (equity partners, non-equity partners, associates, and paralegals), fill in the allocated overhead, salary/draw, planned performance bonuses, and benefits and taxes.
7. Calculate the total average cost for each group, and then divide this total by the expected billable hours to obtain the hourly cost rate.
8. Deduct costs related to any bonuses related to performance as appropriate and compute the required internal hourly rate from the calculated hourly cost rate.
9. Finally, set the target billing rate by factoring in the expected profit margin, and ensure all calculations align with expected realizations and other assumptions detailed in the document.
10. Once all fields are completed and verified, you can save your changes, download the form, print it, or share it as necessary.

Complete your Calculating Profitability form online to gain valuable insights into your firm’s profitability.