A cost benefit/analysis may reveal that whilst the practice generates additional gross revenue, this may be outweighed by the negative effects on client perception and attitudes. What does your firm do and what impact does it have?
Let's also be clear what I mean by office expenses. These fall into 2 categories. Although I find that the terminology can vary from one country to another, let's call the first category ‘disbursements’. For the most part, these are readily identifiable as they are payments to third parties; court filing-fees, title search fees, company’s office charges etc.
These are distinct from the 2nd category, variously referred to as office expenses, bureau charges, tolls, photocopying, faxes, forms, postage, stationary. In other words they tend to be operational consumables.
We have constructed a very quick survey, the results of which will help you decide what is best for your firm and your clients. It will also take the guesswork out of learning what other firms are doing. The question revolves around these major options and there is a comments option if you wish.
- Built into hourly rate - not a separate charge
- User-pays (data captured using technology)
- Flat office expenses charge for every file
- User-pays basis based on ‘guesstimate’
- Percentage added to fee (shown separately on the bill)
- Percentage added to fee (not shown separately on the bill)
- We make a charge for major matters such as photocopying on large litigation files but otherwise we don't
There is also a question about what percentage of the firms' gross revenue comes from office expenses charged through to clients.
CLICK HERE to complete the survey (it will take 1 minute, literally). Results will be available to survey participants only in a couple of weeks.
Please use the 'share' links below to encourage colleagues to participate. The more data the more robust the results.
