The process of calculating partner compensation can be extremely complex. Depending on the geographical market you’re working in and your firm’s unique approach to partner compensation, payments could be based on actual prior-year performance or the expected performance in the coming year. In either instance, there is a small mountain of data to compile and analyze before the finance team can provide accurate compensation figures.
For most firms, it is a laborious manual process that can take hours or even days to complete. In addition to the time associated with manual data entry, comes the increased potential for human error. No matter how long a professional has been in the business or how well they know the process, nobody is a machine. And mistakes will happen.
From the inadvertent alteration of a cell formula to losing manually entered data, the potential issues and the havoc they can wreak on the process are nearly limitless.
A less stressful partner compensation process? Yes, it’s possible.
What if there was an easier way to complete the partner compensation process? How much time would your finance team save if it could automate the process in a way that not only streamlined every step but virtually eliminated errors? The good news is that the technology exists to accomplish all of these goals.
The benefits of an automated partner compensation solution
There are many other benefits beyond streamlining the process and minimizing human error. Let’s take a closer look at two of them:
- Improved security: Most partner compensation processes are completed using standard Excel spreadsheets. While they work fine for everyday office tasks, they come up short for the requirements related to sensitive data used in the partner compensation process. A good partner compensation solution allows law firm financial teams to use the same spreadsheets but with the added security, access, and editing controls they need.
- Version control: Using standard Excel documents, stakeholders at various points of the process can download unfinished versions of spreadsheets or workbooks that have not been approved. The mere existence of these versions can create confusion and introduce errors into the process at any point. Having a comprehensive partner compensation solution ensures that everyone always has access to the same up-to-the-minute information.
How Thomson Reuters Partner Compensation & Accounting can help
Built atop the state-of-the-art Advanced Financial Solutions from Thomson Reuters, the Thomson Reuters Partner Compensation & Accounting solution extracts the required data from 3E and displays it for use in partner compensation calculations. In addition, it can import data from external systems that may be needed. There are several pain points our solution can relieve immediately. The following are some of those most frequently mentioned:
- It helps to pull your finance team out of the weeds with technology developed specifically for the types of financial reporting that are unique to law firms—especially with regard to the partner compensation process.
- With purpose-built tools for sophisticated law firm accounting and analytics, financial professionals can get the information they need without pushing standard spreadsheets to the edges of their capabilities.
- When complex processes like partner compensation become more streamlined, law firm financial teams are able to spend more time on insightful analysis rather than laborious data management tasks.
Don’t wait to streamline your partner compensation process
With the capabilities of Thomson Reuters Partner Compensation & Accounting, law firm financial teams can complete the partner compensation process in less time, and with greater accuracy and increased security. Giving financial professionals direct access to the specific data they need reduces the potential for human error and helps make calculating partner compensation much easier.
Contact a representative to request a demo of Thomson Reuters Partner Compensation & Accounting and learn more about how it can help your firm.