126: Law Firm Profitability and Business Process with Mark Khazanovich from KORE Accounting Solutions

Ten Golden Rules Internet Marketing for Law Firms Podcast

If you’ve ever wondered how law firms can achieve financial efficiency and unlock sustainable growth, this episode has a wealth of insights. I sat down with Mark Khazanovich of KORE Accounting Solutions to dive into the tools and strategies every law firm needs to thrive in 2025 and beyond. Mark shared how his firm specializes in helping law practices streamline their financial systems, emphasizing the critical importance of consistent internal processes and the right tech tools. We discussed the game-changing impact of connecting practice management software to business processes, the benefits of how clear financial workflows can reduce billing headaches and improve profitability. Mark also explored the distinctions between law firm owners who are business-driven versus attorney-focused, offering guidance on creating sustainable and growth-ready practices. Mark’s practical advice is a must-hear for any attorney aiming to turn operations into a competitive advantage.

Key Topics

• 03:27 An overview of the TGR Live! event scheduled for March 10-11, 2025, at the Opal Grand Hotel in Delray Beach, Florida.
• 05:50 The services KORE Accounting Solutions provides, their focus on day-to-day systems, processes, bookkeeping, and management accounting.
• 07:21 The importance of consistent, repeatable internal processes for law firms.
• 07:53 Adding expenses and activities into legal practice management software immediately for better accuracy and client satisfaction.
• 08:18 The importance of having the right tools in place and being conscious of ROI for all subscriptions and tools.
• 08:46 Advising law firms to have good internal processes and the right tools in place to be efficient and effective.
• 09:38 Clio hard importer tool, suggesting that firms should add expenses directly into Clio for better accuracy and timeliness.
• 10:12 The importance of having good processes and the right tools to manage cash flow, especially for contingency-based firms.
• 10:59 Advising PI firms to get approved for a line of credit before they need one to manage cash flow.
• 11:43 Recommends managing personal finances accordingly due to the irregular cash flow of PI firms.
• 12:20 Waiting a couple of weeks before dispersing funds to clients and paying off liens to avoid IOLTA account overdrafts.
• 13:18 The unique aspects of IOLTA accounts, including the state's notification of overdrafts and the interest earned on these accounts.
• 15:53 Challenging the idea of winners and losers among law firms, emphasizing the difference between business owners who happen to be attorneys and attorneys who happen to be business owners.
• 16:17 The importance of having good processes, consistent and repeatable roles, and being on top of finances and compliance.
• 16:39 The significance of knowing where expenses are, how much money is being made, and having a pulse on finances.
• 18:50 Firms with low accounts receivable and past-due invoices likely need better accounts receivable and billing processes.
• 19:05 Recommending regular business accounting and three-way reconciliation on a monthly basis for accurate financial management.
• 19:41 Advising firms to have enough runway to cover several months of expenses, especially for contingency-based firms.
• 20:22 The importance of being able to pull a profit and loss statement and balance sheet quickly for accurate financial management.
• 22:10 Suggesting that firms with a focus on business should meet with their financial professionals at least twice a year, with some meeting quarterly.
• 22:25 The importance of having a good relationship with a tax professional for accurate financial management.
• 22:40 Reviewing estimated tax payments, payroll amounts, and planning for the next year with a tax professional.
• 22:55 KORE was recognized by Intuit as the firm of the future in 2016, leading to a transition from an hourly model to a fixed-price model.
• 23:45 Believes that more firms will move to a fixed-price model in the next five years, aided by AI advancements.
• 24:41 The importance of niching down and becoming experts in a specific area, which has been transformative for KORE.
• 25:09 KORE no longer takes discovery calls from businesses outside the legal industry due to their focus on law firms.
• 26:46 Utilizing Calendly for scheduling meetings, which integrates with his calendar and sends reminders.

Resources Mentioned

TGR Live! Growth Strategies for Law Firms Live Event, March 10-11, 2025

Books:

• Simple Numbers, Straight Talk, Big Profits
• Atomic Habits

Tools & Programs:

• Clio
• Case Status
• QuickBooks
• ClickUp
• Calendly

About Mark Khazanovich:

Mark Khazanovich is the Director of Operations at KORE Accounting Solutions, where he drives innovation in technology-forward accounting services. With a Bachelor of Science in Quantitative Psychology from Arizona State University, Mark began his career in education technology, excelling in process improvements and team leadership. Since joining KORE in 2015, he has transformed the firm into a progressive accounting partner, helping clients leverage financial data for strategic business insights. Mark also enjoys educating attorneys and business owners, frequently leading Continuing Legal Education workshops on accounting and operational topics. Outside of work, he’s a music enthusiast, barbecue aficionado, and proud family man involved in community initiatives, earning the 2017 Sy Clark Young Leadership Award.

http://www.koreaccounting.com/

About Jay Berkowitz:

Jay Berkowitz is a digital marketing strategist with decades of experience in the industry. As the CEO of Ten Golden Rules, he has helped countless law firms and businesses harness the power of the internet to achieve remarkable growth and visibility. Jay is also a renowned keynote speaker and author, sharing his expertise at various industry events and publications worldwide.

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