Law firm KPIs: the metrics a small firm should track (and how to in Notion)

What are the core financial KPIs for a law firm?

Industry reports publish benchmarks, but they vary by source, year and firm size. Track your own trend first; it tells you more than a comparison with someone else's average.

Which operational KPIs matter?

• Matters with no next action: the silent risk.
• Overdue actions by owner: capacity and focus problems.
• Deadlines in the next 14 days without a plan.
• Unbilled time older than 30 days: revenue at risk.
• New matters opened and closed per month: flow.

How do you calculate KPIs in Notion?

1. 1

   Record time properly

   Time entries with hours, rate, billable checkbox and an amount formula, related to Matters and Invoices.

2. 2

   Record invoices and payments

   Invoices with amount billed and amount paid, related to the time entries they cover.

3. 3

   Roll up per matter

   On Matters, roll up value of time recorded, amount billed and amount paid.

4. 4

   Add ratio formulas

   Realisation = billed ÷ recorded value; collection = paid ÷ billed, per matter.

5. 5

   Build the dashboard

   Views grouped by month and by matter type, plus the operational views listed above.

How should you read the numbers?

Low utilisation with good realisation suggests unrecorded or non-billable time. High utilisation with low realisation suggests work you cannot charge for, often scope creep or fixed fees priced too low. Low collection points to client selection, billing frequency or follow-up. Change one thing at a time and watch the trend.

Do time-based KPIs still matter with fixed fees?

Yes. Even on fixed fees, time recorded shows whether a matter type is profitable at its price. The Matter Method treats time as practice intelligence, not just a billing record: it tells you how healthy the practice is.

What does a KPI calculation look like in practice?

A worked month for one lawyer (illustrative figures):

Here the biggest leak is utilisation, then write-downs before billing. The fix starts with recording time the same day and checking which matter types are written down most.

What mistakes make KPIs misleading?

• Recording time days later from memory, which understates utilisation.
• Comparing yourself with a benchmark from a different year or firm size.
• Tracking only financial KPIs and missing operational warning signs.
• Measuring monthly but never acting on the numbers.
• Optimising one ratio at the expense of another, such as billing more hours that are then written off.

Frequently asked questions

What KPIs should a law firm track?

Utilisation, realisation and collection, plus operational measures such as overdue actions and matters without a next step.

How is law firm utilisation calculated?

Billable hours divided by available hours for the period.

What is realisation in a law firm?

Amount billed divided by the value of time recorded at standard rates.

What is a good collection rate?

Benchmarks vary by source and year; track your own trend and aim to improve it.

Can Notion be used as a law firm dashboard?

Yes, with time, invoices and matters linked and formulas and rollups calculating the ratios.