Week 6: Tracking & Reporting — Turning Information Into Impact

Terrell A Turner
Jul 2
6 min read

By Terrell A. Turner, CPA

Law firms are growing—but not all are getting healthier. According to the 2024 Legal Trends Report, solo and small firms are bringing in more revenue and handling more cases, yet they still struggle with collections, time tracking, and financial clarity. Why?

Because their financial data is often unreliable—delayed, disorganized, or missing key details.

This week, we close the loop on everything you’ve learned. From metrics and forecasting to compensation and decision-making—none of it works without trustworthy data.

If you want to lead with confidence, you need to track the right information, use it wisely, and build a system that makes reporting easy, accurate, and actionable.

Data Integrity: Clean Data = Clear Vision

Flying a plane with a cracked dashboard isn’t just dangerous—it’s disorienting. That’s exactly what it feels like to run a firm with incomplete or inaccurate financial data. You may be moving fast, but you’re not steering with clarity.

Common Data Errors in Law Firms (Now with Context)

Duplicate or Inconsistent Matter Entries
These create confusion when billing, complicate financial reporting, and make it harder to understand case performance. It can also affect collections when the wrong name appears on an invoice or reminder.
Incorrect Timekeeping or Billing Codes
This leads to underbilling—or even legal disputes if invoices don’t align with engagement terms. Lost time = lost money, especially if attorneys aren’t entering hours daily.
Unreconciled Trust Accounts
This is a serious compliance risk. Failing to reconcile trust accounts monthly could result in bar violations or financial penalties—not to mention a loss of client trust.
Outdated Client Contact Info
Invoices sent to inactive emails or wrong addresses don’t get paid. This contributes to delayed collections and missed communication.
Missed Invoice Deadlines
The longer it takes to bill, the longer it takes to collect. Clients pay faster when billing is timely and clear. Delay billing, and you delay cash flow.

Leadership Insight: Clean data isn’t just a bookkeeping issue—it’s a leadership asset. It protects your reputation, accelerates decision-making, and enables sustainable growth.

Real-World Scenario: $75K Hidden in Plain Sight ( Place holder for you to replace )

One firm we worked with had over $75,000 in unpaid invoices sitting uncollected for more than three months. The issue wasn’t complex—it was basic: no one was regularly reviewing the A/R report, and billing workflows lacked accountability.

After implementing a simple monthly billing review (30 minutes!), things changed:

Cash flow improved dramatically
The firm hit collection goals for the first time in months
Staff morale increased because financial pressure decreased

Lesson: A small change in reporting cadence revealed a major opportunity—and resolved it. The systems weren’t broken. They just weren’t being used consistently.

Who Owns the Data? Shared Responsibility = Shared Success

When financial data breaks down, it’s usually not because of one person—it’s a team-wide accountability gap. Assigning clear roles ensures nothing falls through the cracks.

Attorneys

Responsible for daily time entry, accurate matter descriptions, and client communication. When attorneys delay or skip these tasks, billable hours are lost, invoicing is delayed, and client trust erodes.

Paralegals/Admin Staff

Maintain case status, update client contact info, and ensure documentation is uploaded properly. Inaccurate status tracking leads to poor reporting and client misunderstandings.

Finance/Billing Team

Generate invoices, reconcile accounts, track collections, and run reports. If this team doesn’t have reliable data from the front lines, everything downstream—collections, reporting, forecasting—gets harder.

Leadership (Managing Partners, COOs, CFOs)

Oversee system use and ensure accountability. Leaders should review reports, set expectations, and require cross-functional collaboration around data hygiene.

Action Tip: Make clean data part of everyone’s KPIs. Don’t just reward results—reward reporting integrity.

How Often Should You Review the Data?

Consistency is more important than complexity. The firms that review data regularly make better decisions faster—with less drama.

Time Entries – Daily/Weekly

Attorneys and admins should review and submit time entries daily or at least weekly. This ensures accuracy, helps reduce lost hours, and streamlines billing. Use software reminders or end-of-day review rituals.

Client Billing – Weekly or Biweekly

Finance teams should generate, review, and send invoices consistently—on a schedule. Billing shouldn’t happen only when someone remembers. Batch processes reduce errors and help manage cash flow predictability.

Accounts Receivable – Monthly

At least once a month, review outstanding invoices by age, client, and status. Escalate overdue balances, automate reminders, and follow up personally on large balances.

Trust Reconciliation – Monthly

A non-negotiable compliance task. Reconcile all trust accounts to ensure no funds are missing, misapplied, or overdrawn. Assign this to a qualified bookkeeper or fractional CFO.

Financial Statements – Monthly & Quarterly

Use monthly P&L and cash flow statements to evaluate performance. Quarterly reviews allow for deeper trend analysis and strategic adjustments.

Practice Management Metrics – Weekly or Monthly

Track active case load, open vs. closed matters, and team performance. These metrics are operational gold if reviewed regularly by department leads or managing attorneys.

Leadership Habit: Set recurring meetings or reminders for each reporting rhythm. Turn data into dialogue.

Practice Management Software: Your Central Source of Truth

Even with great people, you need the right tools configured correctly to get accurate reporting.

Clio, MyCase, PracticePanther

Manage time tracking, matter status, client communication, and billing in one place. These tools are foundational for mid-sized and small law firms.

QuickBooks Online or Xero

Handle general ledger accounting, expense tracking, and profit/loss statements. These platforms integrate with most legal tools and offer cloud-based access.

Gusto or Rippling

For payroll, benefits, and HR compliance. These tools ensure salary data syncs with financial reports and tracks team costs accurately.

LeanLaw, CollBox, or Custom Dashboards

Built for law firms that want more visibility into collections, partner comp, or custom KPIs. These tools turn your numbers into visual insight.

Integration Insight: If your accounting tool and practice management system don’t talk to each other, you’re vulnerable to duplicate data and blind spots. Prioritize integration to build a single source of truth.

Financial Reporting: From Numbers to Insight

Running reports isn’t the goal. Using reports to make strategic decisions is the real win.

Profit & Loss (P&L) Statement

Tracks income, expenses, and net profit. This is your month-to-month snapshot of financial health. Use it to evaluate whether marketing or payroll changes are paying off.

Balance Sheet

Shows your firm’s net worth at a specific point in time. Reveals how much cash, debt, or equity you’re holding. Key for understanding your ability to take risks or make investments.

Cash Flow Statement

Focuses on when money enters or exits your accounts—not just whether you’re profitable. Even profitable firms can run out of cash if collections are slow or expenses spike.

A/R Aging Report

Breaks down unpaid invoices by how long they’ve been outstanding. Use this to prioritize collection efforts and uncover which clients need tighter boundaries or upfront retainers.

Trust Account Report

Details client fund balances and disbursements. Use this to stay compliant with bar rules and protect client confidence.

Leadership Insight: Run these reports consistently. Don’t wait for your CPA or tax preparer to explain them months later—by then, it’s too late to course-correct.

Dashboards That Make It Easier to Lead

Dashboards turn raw numbers into visual stories. The best dashboards don’t overwhelm—they focus on the few metrics that matter most.

Revenue by Practice Area

Reveals what’s driving growth. If family law is 60% of revenue but only 30% of your team, that’s a capacity red flag—or a focus opportunity.

Open vs. Closed Cases

Tracks how quickly you’re resolving matters. A growing backlog may indicate workflow problems, understaffing, or intake misalignment.

Average Billing per Attorney

Helps compare productivity across your legal team. If one associate is billing 30% below peers, it’s time for coaching—or a deeper workload analysis.

Collection Rate

Measures what % of billed work actually gets paid. Dips here suggest client dissatisfaction, invoice confusion, or poor follow-up.

Cash in Bank vs. A/R Outstanding

Compares real liquidity to outstanding revenue. If A/R is growing faster than cash, collections need attention—fast.

Client Acquisition Metrics

Tracks how leads turn into signed clients. Use this to refine marketing strategies and forecast growth more accurately.

Dashboard Tip: Use simple charts, color coding, or progress bars. Good dashboards don’t require explanation—they just show you where to look.

The Goal: Trust the Data Enough to Take Action

When your data is clean, consistently reviewed, and clearly presented, you stop guessing and start leading. You know:

When to hire—and when to wait.
Which clients are profitable—and which are draining resources.
When to adjust spending—and when to double down.
How your team is really performing—not just how they feel.

That’s the power of operational clarity.

Reading Assignments

“Practice Management Best Practices” (Lawyerist)
“Financial Reporting Best Practices for Law Firm Leaders” (by Terrell Turner) This Article

Wrapping Up: Build a System That Supports Smart Leadership

Main Idea: Clean, timely, and trusted data is what turns good intentions into smart, confident leadership.

This Week’s Action Plan:

Audit your current tracking and reporting systems. What’s missing or inconsistent?
Assign ownership across teams for data entry, review, and accountability.
Schedule a recurring reporting cadence (monthly/quarterly) that fits your firm’s rhythm.
Build or refine a visual dashboard that turns numbers into next steps.

Final Leadership Insight:

Tracking and reporting may not be glamorous, but they are the foundation of sustainable success. With clean data and consistent review, you move from reaction to intention—and that’s where great firms are built.