This 2017 study collected information on firm investment in innovation, strategies to finance growth and charge-out rates—as well as the firm's performance across a number of key indicators (like profitability, work in progress days, debtor’s days, interest expense, labour cost, rent, and working capital). The survey was conducted in November 2017.
The report, led by leading accounting and advisory firm Crowe Horwath and the Australasian Legal Practice Management Association, indicates law firm profitability remains strong with margins between 54 and 64 percent for the financial year ending 30 June 2017, and 64 percent of participants meeting or performing above expectations.
The ALPMA/Crowe Horwath Financial Performance Benchmarking Study uses Crowe Horwath’s proprietary benchmarking tool, Open Measures, to compare participating Australian law firms. This is the seventh consecutive year the study has been undertaken with the aim to assess the financial health of legal practices and help firms benchmark their performance to their peers.
Open Measures
Participants have received an email with the results summary, plus a login to access Open Measures, which enables them to interactively compare their firm's performance against the results from similar law firms using a number of filters including location, practice type and size of firm. This powerful analysis gives firms a relevant and meaningful benchmark to work from - and realistic goals to aim for.
In Open Measures (www.openmeasures.com) any firm can easily assess and review its performance against similar firms across an organisation, over any time period. Visual score cards easily assess, track, rank and evaluate the performance of firms, franchises and divisions within an organisation or branches of a business.
