---
title: "Law firm KPIs: the metrics a small firm should track (and how to in Notion)"
url: https://thematteros.com/blog/law-firm-kpis-in-notion
updated: 2026-10-17
author: Raghav Handa
---

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

The core law firm KPIs are utilisation (billable hours ÷ available hours), realisation (amount billed ÷ value of time recorded) and collection (amount collected ÷ amount billed), plus operational measures such as matters without a next action and overdue deadlines. In Notion, formulas and rollups on Time, Invoices and Matters databases calculate them for a dashboard.

## Key takeaways

- Utilisation, realisation and collection together show where revenue leaks: unrecorded time, write-downs, or unpaid invoices.
- Read them together; a strong number in one can hide a problem in another.
- Operational KPIs (overdue actions, matters with no next step) predict problems before they hit revenue.
- Time recorded against matters is the raw material: without it, no KPI is reliable.

## What are the core financial KPIs for a law firm?

| KPI | Formula | Shows |
| --- | --- | --- |
| Utilisation | Billable hours ÷ available hours | How much capacity becomes chargeable work |
| Realisation | Amount billed ÷ value of time recorded | Write-downs and discounts before invoicing |
| Collection | Amount collected ÷ amount billed | Write-offs and slow payment after invoicing |
| Effective rate | Amount collected ÷ hours worked | What an hour is really worth |
| Lockup | Days from work done to cash received | How long money is tied up |

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. Record time properly: Time entries with hours, rate, billable checkbox and an amount formula, related to Matters and Invoices.
2. Record invoices and payments: Invoices with amount billed and amount paid, related to the time entries they cover.
3. Roll up per matter: On Matters, roll up value of time recorded, amount billed and amount paid.
4. Add ratio formulas: Realisation = billed ÷ recorded value; collection = paid ÷ billed, per matter.
5. Build the dashboard: Views grouped by month and by matter type, plus the operational views listed above.

Video: https://www.youtube.com/watch?v=c_Em-nuHK_g


## 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):

| Measure | Figure | Calculation |
| --- | --- | --- |
| Available hours | 140 | Working days × planned hours |
| Billable hours recorded | 84 | From the Time database |
| Utilisation | 60% | 84 ÷ 140 |
| Value of time recorded | $16,800 | 84 × $200 standard rate |
| Amount billed | $14,280 | From Invoices |
| Realisation | 85% | 14,280 ÷ 16,800 |
| Amount collected | $12,852 | Payments received |
| Collection | 90% | 12,852 ÷ 14,280 |

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.


## FAQ

### 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.

## Sources

- [ABA GPSolo: Measuring your law firm's profitability](https://www.americanbar.org/groups/gpsolo/resources/ereport/2026-september/measuring-your-law-firms-profitability-which-numbers-matter-most)
- [Clio: Law firm KPIs](https://www.clio.com/blog/law-firm-kpis-how-well-law-firm-doing/)
- [Notion: Intro to formulas](https://www.notion.com/help/formulas)