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Australian firms slash costs to boost profits
Australian law firms have managed to increase their profits by an average of five over the last year - but, in a climate of falling revenues, they have had to cut costs by 36 per cent in order to do so.
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Research contained in the ALPMA/Crowe Horwath Financial Performance Benchmarking Study of Australian Law Firms shows that the average profitability of law firms rose from 10 per cent in 2013 to 15 per cent in 2014. Meanwhile revenue fell six per cent to reach an average of A$1.2m per partner in 2014. Firms made hefty cuts - averaging 36 per cent (when rent is excluded). But firms are being more selective in the way they are cutting - in comparison with the way they reduced costs at the start of the global financial crisis by identifying which parts of the business were profitable. Source: Lawyers Weekly
