505 / 736
7. Monthly analysis of expenses and costs.
As bills of cost are furnished the relevant
job sheets are placed in folders classified
under the various heads selected in para
graph 1. At the end of each month a
record of expenses of the practice for the
previous month and cumulatively from
the beginning of the financial year to
gether with costs
furnished
for
the
previous month and cumulatively. The
costs are shown under two heads.
(a) As furnished
(b) As calculated on a time cost basis
This shows the relative profit or loss of
different types of work.
Offices participating in this exercise will
be supplied with the OYEZ TWINLOCK
TIME RECORDING SYSTEM. Repeat
orders of stationery may be ordered from
the Solicitors' Law Stationery Society,
London.
APPENDIX 1
TIME COST FACTOR (1275 hours p.a.)
EXAMPLE
Fee earners
(1)
Principal's notional salary (earnings)
(2) Assistant solicitor actual salary
(3)
Clerk, actual salary
Total earnings and salaries of
fee-earners
(4)
General overheads from last accounts (Salaries of non-fee
earners and all other overheads not included as disbursements
in bills of costs)
£6,500
Adjusted for subsequent increased expenses
£500
£4,000
£2,000
£1,500
£7,500
£7,000
Fraction of
total
salaries
of fee earners
4,000
7,500
2,000
7,500
1.500
7,500
(5)
Total salaries and overheads to be allocated to fee earners in
proportion to their salaries.
Allocation of item (5) between fee earners
Principal
(1)
Clerk
14500
Assistant
(2)
14500
x
(3)
14500
x
4000
7500
2000
7500
1500
7500
£7733
£3866
£2900
£14499
£14,500
Time
cost
factor
(1275
hours
=
ipy.'in Units'1
7733
1275
3866
1275
2900
1275
\ j. z, / \s
iiw .1 a
12750 u its)
£6
1
4 per hr.
12/2d. per
unit
£308 per hr.
6/ld. per _
unit
£256 per hr.
4/6d. per
unit
51