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Category Archives: Law Office Management

What Motivates Us (How to Pay Employees)

“Money is a motivator.  If you don’t pay enough, people won’t be motivated. Pay people enough to take the issue of money off the table”

and TED

Law Office Burglarized (Lesson in Back-Up)

A close lawyer friend of mine was recently the victim of a burglary.  Her law office was broken into over a weekend and the thieves stole all her computer equipment and other valuables.  Even though she kept paper files, all her computerized files were gone along with her computer.

I asked her after she told me about the break-in, “Did you back up?”  Her response is typical of lot of attorneys, “It was next on my list of things to do.”  But we all know that that list only grows longer and other things start to creep in ahead of backing up.

She has since spent a lot of time and money to rebuild her office from this catastrophe.  The lesson to be learned is that even though you may lose your computer to theft, fire or other disasters, if you have an effective back-up system, the only cost to you would be the money to replace the equipment.  The time to restore your old files would be negligible.

I recommend multiple backups, one of which should remain outside of your office.  Keep a hard drive backup and also an online backup such as Mozy or Carbonite.  Do it now before it’s too late!

Using PayPal in Your Law Practice

I’m going to come right out and say it – PayPal should not be used in collecting any type of fees in your law practice.

In this month’s Massachusetts Lawyers Journal and Massachusetts Lawyers Weekly, there were articles about how to take credit cards and using PayPal to collect fees.

Listed as cons for using PayPal are reasons such as chargebacks to your IOLTA, fees being deducted from the retainer amount and commingling attorney funds with client’s money.  Another reason not listed that should be mentioned is that paypal is unreliable.

Ask any large-scale merchant on ebay or do a search on paypal horror stories and you will find forum after forum full of merchants who had had their paypal account frozen purely at the discretion and whim of paypal.  If they see that your account is “suspicious” they have the unilateral right to freeze the account and hold the funds for upwards of 90 days.  All this you agreed to in the end-user agreement that nobody reads when they sign up.

What does PayPal consider suspicious activity?  Who knows.  It’s purely their decision.  If they see a large transaction (such as a large retainer), they might freeze your account until they can ascertain the validity of the transaction.  Meanwhile, you can’t access those funds and PayPal is not investigating with full deliberate speed.

If you’re going to accept credit cards as part of your law practice (as you should), then sign on with a reliable and trusted law firm merchant account such as Affiniscape or LawCharge.  Don’t risk it with PayPal.

How to Charge Credit Cards in Your Law Practice

Recently in Massachusetts, an attorney has been brought up on BBO disciplinary charges for using paypal to charge his retainer fees.  Using paypal is inappropriate if, like this attorney, you used your IOLTA funds to pay for personal and business items.  It’s also improper because fees and other charges are taken out of the IOLTA and not your operating account.

If your clients charges a credit card to pay your retainer, the entirety of those funds must be deposited into your IOLTA account.  No fees or other charges must be taken from those funds.  Any and all fees must be paid out of your operating account and is a cost of doing business.  You cannot charge your client the fees associated with using a credit card.

Law firm merchant accounts such as Affiniscape or LawCharge are set up to serve law firms specifically.  They will deposit all retainers into your IOLTA and take any fees or chargebacks from your operating account.  This is the ONLY way to charge credit cards in your law practice.  Do not use paypal!

100 Hacks to Help You Create the Ultimate Home Office

This is a repost from SeanScript and Chief Home Officer.

First, Productivity…

Here you’ll find hacks to keep you on task even while you work from home.

  1. Hang up a clock: It’ll add something to the walls and keep you on task.
  2. Get a desk lamp: A desk lamp will ease eye strain and help you focus on what’s in front of you.
  3. Get a whiteboard: A whiteboard will free up desk space for notes, calendars, brainstorms and reminders.
  4. Get rid of email alerts: You don’t need a desktop application telling you that you have a new tweet or e-mail. Set aside time to check e-mail to avoid interruptions.
  5. Remove distractions from your office: Keep magazines, toys, personal mail, and other distractions out of your office.
  6. Incorporate your goals into your office design: Know what you’re working towards, and put it up all around you in the form of posters, paintings, goal charts or brainstorms.
  7. Hide your time wasters: Make online time wasters harder to get to in order to avoid procrastinating.
  8. Use a time-tracker: You can use web tools or alarms to keep you on task.
  9. Get a separate phone line: Avoid interruptions from personal calls by getting a separate phone line for your office.
  10. Clean a little each day: A messy, cluttered office will make you feel stressed, overwhelmed and unable to focus, so clean a little bit each day.

Next, Clients and Collaboration…

From making clients feel welcome in your home office to working with other team members in other locations, these hacks will keep you connected.

  1. Armchairs: Even if you rarely have clients visit you at the office, invest in one or two armchairs for the times they do. They’ll expect it.
  2. Get the right telecommuting tools: Web tools like Dimdim and LogMeIn help you stay connected to partners and clients even when you’re working by yourself.
  3. Keep everything professional: Clients don’t want to visit you in your bedroom, so set up an office space that’s creative but conventional.
  4. Have refreshments readily available: Keep a range of beverages (including water and diet drinks) and easy-to-eat snacks in a mini fridge.
  5. Set up a meeting space: If you share an office, make sure you can speak with clients privately in a separate or sectioned off meeting space.

Organization

Stay organized so that your business can grow with your office space.

  1. Filing cabinet: Every home office needs a filing system, on the computer and for hard copies of bills, statements, correspondence, receipts and more.
  2. Build an office cupboard: This guide will help you build an office cupboard that meets standards in design, ergonomics and more.
  3. Sort your mail: When you get your mail, separate business mail and take it into your office.
  4. Put things away when you’re finished with them: You tell your kids to put their toys away before getting a new one, and you should too if you want to avoid clutter.
  5. Keep everything you need within reach: Avoid repeatedly reaching to get to your mouse or filing system, as this can hurt your shoulders, wrists or back.
  6. Clean up wires: You can get retractable cords or just bind cords together and hide them behind furniture. Make sure no one is at risk of tripping, either.
  7. Gut your desk: Throw out unnecessary duplicates of documents, junk mail, outdated or expired materials, things you don’t use every day and pictures or items that make you feel negative or depressed.
  8. Make a master to-do list: Keep a master to-do list in an easy-to-find and view place (hint: not on your phone or e-mail).
  9. Color code: Color code your filing system and your calendar to make it easier to identify things and dates.
  10. Make a spot for everything: Keep a separate file, inbox, drawer, shelf and holder for everything.
  11. Keep flat surfaces clear: Lifehacker recommends keeping all of your flat surfaces clear to avoid piles.
  12. Get rid of sticky notes: Use web versions instead to cut down on clutter.
  13. Get a trash can: Keep a decent sized trash can next to your desk so that you can throw things away as soon as you’re finished with them.
  14. Set up an eating area: Keep your desk clean by eating at a bistro table or in another room.

The Green Office

For the sake of cost effectiveness, your health and saving the environment, consider these hacks for turning your workspace into a green office.

  1. Get eco-friendly office furniture: Get furniture made of natural fabrics and resources.
  2. Unplug your appliances: Printer, lamps and computers drain energy all night.
  3. Use green cleaning products: Keep your office smelling fresh and not like chemicals when you use green cleaning products.
  4. Recycle: Set up recycling bins for ink cartridges and tech “trash,” as well as paper goods, aluminum and cans, and more.
  5. Use less A/C or heat: Comfort is key when you want to maintain focus, but try adding layers or using a small fan first.
  6. Use e-mail: E-mail documents instead of mailing them.
  7. Get creative with web tools: Instead of printing out notes, use web highlighters and sticky notes to make annotations and personalize documents.
  8. Change your ink: Soy-based ink is actually better quality and doesn’t run out as fast.
  9. Turn off the lights: Make sure the lights are turned off whenever you leave the room, and rely on natural light as much as possible.
  10. Print and write on both sides of the paper: When you do have to print, make sure you use both sides of the paper.

Inspiration and Examples

Check out these galleries, blogs and images of clean, organized office spaces.

  1. Unclutterer Workspaces: Anywired.com points to this Flickr gallery of clean workspaces.
  2. 10 seeeeriously cool workplaces: You may not be able to replicate these innovative workplaces, but you can adopt some of their style.
  3. Creative Home Office Inspiration: Belle Maison posts gorgeous photos of feminine, clean home offices for every style.
  4. GetDecorating.com: Scroll through home office and library photos here.
  5. Good Housekeeping: This slideshow includes a range of styles for uncluttered home office spaces.
  6. Roundup: Favorite Home Office Inspiration: Apartment Therapy’s home office roundup features lots of modern designs.
  7. Home Decor Exchange: These sophisticated designs incorporate built-ins for organization.
  8. Plugged In: This Old House features home offices in large and small spaces.
  9. Create a Cozy Home Office: View before and after photos to get a better idea of how you can transform your space.

Updates and Small Changes

If you don’t have a budget to renovate or build an entire home office, here are tips for making the space you have even better.

  1. Add living things: A plant or fish tank will literally bring more life into your home office and can help boost your mood. Certain types of plants, like palms, also help improve air quality.
  2. Get a bean bag chair: Instead of a couch, get a bean bag chair for when you need to chill out (or nap) for a minute.
  3. Open up the windows: Vow to open your windows more often, or if they’re sealed shut, find a way to make them open again.
  4. Bring furniture out from the walls: Rooms tend to look smaller when you push up furniture around all the walls.
  5. Decorate the walls: Put up pictures or paintings to boost your mood and help you feel relaxed and inspired.
  6. Paint: A clean, fresh coat of paint in a new color will instantly inject character and energy into your home office.
  7. Feng shui: Rearrange office furniture to invite positive energy flow.
  8. Spruce up your view: If you’re tired of looking out at the same view, plant some flowers outside or add window treatments to change up the scenery.
  9. Use candles: Create a cozy, welcoming atmosphere with scented candles.
  10. Redo the decor: Switch out vases, knick-knacks, door mats and other small decorations for new ones. You’ll notice the difference immediately.
  11. Change your desktop theme: Another simple (and free) idea, changing your desktop will fuel you with new inspiration.

Extra Hacks

From knowing how to make your office a tax deduction to building an office bathroom, here are more hacks for creating the ultimate home office.

  1. Get an exercise ball: A few times a week, switch your chair out for an exercise ball that will work your abs and improve posture.
  2. Tax Deduction: If you work from home, you can deduct part of your rent and utilities. Just make sure you’re doing it the right way.
  3. Get a sound system: It’s been discussed that classical baroque music is best for your focus.
  4. Don’t forget about wiring: If you’re adding new gadgets to an older room or are building a new space from scratch, read this guide to learn about rewiring your home office.
  5. Creating a Home Office In Your Basement: This guide reminds you to check the codes, sketch out your design and find a contractor.
  6. Keep scratch paper and pens handy: You probably do most of your work on the computer, but make sure you have something to write with when you’re on the phone or get a sudden idea.
  7. Remember the bathroom: Make sure you and your clients have easy access to a bathroom, and don’t try to share your office bathroom with the family or kids’ bathroom.
  8. Keep an office supply closet: Make sure you have extra ink, paper, and other office supplies when you need refills.
  9. Have a secondary place to work: While you renovate your primary home office, create a backup place to work.
  10. Clean your PC: Dust your PC from time to time to keep it quiet, cool and efficient.

Flat Fee Pricing Could Work for All Practice Areas

The death of the billable hour has been touted before but I believe hourly billing’s days are numbered.  I see attorneys and law firms going to a fixed fee or hybrid model of billing more and more.  It pleases me to see transparency in legal pricing and believe me, it pleases the clients as well.

Those attorneys who are still hanging on for dear life onto the billable hour simply don’t understand what the client wants.  Law firms are a service business.  We are in the business of selling legal advice – not time.  By billing hourly, we are telling the clients that what they’re buying is our time.  But the truth is that every one’s time is the same.  A minute to me is the same as a minute to the client.  If the client truly wanted to buy time, they would either get a personal assistant or a face-lift.

Every practice area is susceptible to flat fee billing.  You could do plain old vanilla flat fee billing (pay once and that’s it) or some hybrid form of flat fee billing to hedge the loss of complex cases.  But to simply say that your practice area doesn’t allow for flat fee pricing is a cop-out.  I do divorce litigation and my entire practice is flat fee.

Abraham Lincoln once said that “A lawyer’s time and advice are his stock and trade.”  That is simply not true anymore.  It’s simpler than that.  Our stock and trade is our advice.

Backyard Office – Home Office for the 21st Century

Just take a look at these near-home offices and tell me you don’t want one.  I dare you.

(via Design-Milk)

And for those of us with less money to splurge and who happen to have an empty shed in the backyard, check out the backyard shed turned home office.

How to Hire Legal Interns (Legally)

It’s almost summer and law students from across the state is gearing up to get internships or Summer Associate positions.  There is a huge supply of law students and it naturally out paces the demand.  The law of supply and demand dictates that there would be intense wage depreciation due to a huge supply.  Some of us might be tempted to hire unpaid legal interns but be careful, because it could be illegal to do so.

In a recent NY Times article, they talk about this very issue of interns being paid nothing or next to nothing in return for substantial work.  Many times, this violates minimum wage employment laws since the employers are benefiting from the efforts of these interns.  There are Department of Labor Guidelines detailing when you can hire unpaid interns.

In and around Boston, one of the biggest suppliers of legal interns is Northeastern University School of Law.  This is due to their coop program that requires that to graduate, law students must complete 4 quarters of legal coops.  Some of these coops are paid and some are unpaid.  Largely, the students must secure the coops for themselves (with some help from the School).  So would hiring a Northeastern coop student for an unpaid quarter violate these laws?  I don’t have an answer to this but I suppose with all things – it depends.

Currently I’m employing a coop student but I pay her a stipend for being with me for 11 weeks.  It is a requirement that she have a coop in order to graduate and she also does not displace any workers in my office.  I’m training her in family law practice but in return, she’s helping me with divorce filings.  If this coop was unpaid, would it violate the regulations set forth by the DOL?  What about a stipend that amounts to less than minimum wage?

Employee manuals and workflow

* This tip was first published by the Massachusetts Bar Association: Tip of the week on 1/21/2010

All firms should have an employee manual and workflow developed – even solo practitioners.

For firms of more than one person, it is helpful to get new employees up to speed on operating procedures and office workflow as quickly as possible. It cuts down on the time needed to train the new employee.

For solo practitioners, if you ever hire an intern to help around the office, the employee manual will also help to reduce the time you will need to educate the intern regarding how you run your business.

An employee manual should contain everything you want a new employee or intern to know about your business and what you expect of them. It can include dress code, holiday and vacation times and pay, procedure for opening and closing the office, procedure for answering the phones and how to deal with clients that walk-in, etc.

A workflow is basically a set of instructions for tasks that are done on a regular basis that requires no deviation. In my office, I set up a workflow for how to open and close a new client matter, how to scan using the office scanner, how to print and copy using the scanner, how to print labels and stamps for shipping and even how to put together an uncontested divorce packet.

If you start putting an employee manual and workflow together now, it will save you time down the road when you expand and new employees come in. Contact the Law Office Management Assistance Program at (857) 383-3250 to learn about resources and reference materials that will make developing your office manual easier.

This tip is courtesy of Gabriel Cheong, attorney at law, owner of Infinity Law Group.

The pros and cons of working with prepaid legal plans

First off, what is a prepaid legal plan?

Some companies offer a legal insurance plan similar to medical insurance.  The employee pays into the plan and if they ever need a lawyer for a prenup, real estate closing, wills and trust, bankruptcy, etc., they can call up their legal service provider and ask for a referral to an attorney that is in the network.

Some of the pros of being listed with one or more prepaid legal plan such as ARAG or Hyatt is that when you’re a new solo, you need every source of income you could get.  Prepaid legal plans will provide you with much needed referrals similar to what you would get from a Lawyer Referral Service with the Massachusetts Bar Association or the Boston Bar Association.  Along with getting more clients you will get the necessary experience to better help clients in the future.  Lastly, these services will always pay so there’s no fear of non-payment by the client.

The con of being listed with one of these prepaid legal plans is that they generally pay very low rates.  They have a set fee structure and it’s sometimes half or 1/10th of what you would normally charge for a similar matter.  In the beginning of your practice, you might find that it’s better than no business at all and it’s a calculated move to get clients through the door.

Another thing to keep in mind is that these prepaid legal plan clients might refer you cases from a friend or relative that does not have legal insurance and therefore you can charge them your regular rates.

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