Let's begin with a short quiz. Two firms each have $20 million in revenues. One firm has 40 equity partners. Its cash-basis profit & loss statement shows a profit of
How To Improve Firm Profitability
Many lawyers measure their firm's profitability the way a company does ' as a percentage of sales. However, the correct way to measure the profitability of a law firm, whether it is a partnership or a professional corporation, is the net income per equity partner (NI/EP) (or shareholder).
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