As a small legal firm, taking on additional overhead costs can hurt the bottom line and when evaluating any cost, it is always good practice to consider the return on investment (ROI). ROI is simply the net gain of an investment divided by the cost of the investment.
Here let us evaluate if Clio is worth the monthly fee:
The gain in this investment is effective time management. Tracking your time efficiently allows you to bill more of it. The fewer billable hours you lose, the more income you are able to generate.
The cost in this investment would be the monthly fee for Clio's practice management software.
- Three(3) additional billable hours each month are gained with effient tracking software, or 36 hours per year
- Your billable hourly rate is $200
- Clio's Basic, cloud based, practice management software costs $40 per month, or $480 annually
- 36 hours X $200/hour = $7,200 (the gain)
- Less $480 (the cost of the investment)
- $7200 – $480 = $6,720
- $6720 divided by $480 = 1,400% ROI
- It will cost you $480 annually to increase your revenue by $6,720, without working any additional hours.
Bottom line, is this a ROI worthy of your investment? We believe it is and the findings speak for themselves.