The Gazette 1994

GAZETTE

p R A

T i

M A N A G E M E N T

JANUARY/FEBRUARY 1994

S y s t e ms in t h e O f f i c e .

1 0 No t - S o - E a sy T i ps

Frank Lanigan*

Lawyers are intelligent people. They

spend much of their time telling

people what to do. They are anarchic,

individualistic and hate organisation.

Nobody, particularly bean-counting

accountants will tell them how to run

their offices.

A solicitor setting up in practice will

often adopt the system of the office in

which he has served his apprenticeship,

thereby, at one fell swoop, ensuring

that bad habits pass seamlessly from

one generation to the next!

It you always wanted to have a good

system in your office but were afraid

to ask, here are 10 ways to start. First

the bad news:

1. A Filing System

You must have files in a condition and

order that will make them available

without delay. Files must be logically

stored and correspondence filed daily.

There is no short cut here, no computer

system yet which can replace this

essential chore.

The most common filing systems are

alphabetic and alphanumeric, ie files

from a-z or 1-100 or a combination.

Some firms divide the files into types

of work and then into fee-earners with

each fee earner's files in alphabetic or

numeric order. Some simply number

all files. It does not really matter,

provided there is a system, backed up

with a listing, card-index or some

logical means of finding a file. A

filing system does not allow for files

on the floor, under the desk or on top

of the press. Either you file . . . or you

don't. If you have no filing system,

stop reading now and start filing. For

further details of filing systems see

How to Manage your Law Office,

Altman & Weil (Matthew Bender).

2. Putting Files Away

When a file is finished, does it lie on the

floor until it falls apart? What if the

Frank Lanigan

client comes back in five years time,

looking for something? Can you put

your hand on it? File storage (or

"archiving", a superior buzz-word!) is

very important. There must be a storage

method for files, some needing docu-

ments, some for professional indemnity

purposes, others for internal record.

Record the file out of your current filing

system. Record the file into a closed

system. Keep track by means of a book,

card-index or computer database. When

storing the file away, remove any

unnecessary documents from it. Mark

stored files for destruction, saving or

otherwise. Review stored files from year

to year. Destroy when the Statute of

Limitations permits.

3. Wills

A box of wills is worth its weight in

gold. List them, put them on a card-

index, put them on a computer data-

base, but keep track of them . . . the

owners will eventually die! Categorise

them, on computer or otherwise, so

that legislative changes may be

notified to testators.

4. Deeds

List all deeds in a book, card-index or

computer system. Keep track of them.

If they are released, get receipts and

track them, using a deed book or

computer listing.

5. Undertakings

Keep a list of all undertakings. Mark

off those satisfied. Charge for giving

and satisfying undertakings.

6. Accounts

Solicitors accounts systems are

infinite in variations of incompetence.

A relatively large office may be run

on the so-called accounts system

originally in use when the senior

partner's father was in practice.

The success of an accounts system

depends on the logic upon which it is

based. The file relates to the client,

therefore the account should do so.

There is no reason why there should

be a different ledger and file reference

for the same client.

The current logic is, "one matter/one

ledger reference". A client should

have the same filing and ledger

reference. If there are many matters

for the client, each matter should have

a subsidiary filing (and ledger)

reference. This enables proper

accounts to be kept. There is no

substitute for this procedure. All

computer systems are based on this

premise.

7. Financial Control

There is little point in monitoring

clients' accounts, if we do not manage

our own. Control of expenditure,

overheads, labour costs, billing,

outlay for clients and other nominal

matters is now essential. It is of little

use to be told by your accountant (6

months later) that you have given too

much credit to your clients. It is

possible, even without computers, to

monitor expenditure and catalogue it

from month to month. See for

example,

Best Practice

published by

the English Law Society.

Put a reference on every receipt, bill,