Financial

One of the first tools any CLNC^® consultant needs is an accurate way to keep track of billable hours and create invoices for attorney-clients.

In the history of billing practices, the paper system was replaced by computers that are supplemented by personal data assistants (PDAs) and PC-based electronic solutions. Most electronic solutions had to be installed directly on the users’ PCs. The different computer-based solutions include Timeslips, Peachtree Complete and QuickBooks Pro, all of which survive today. Timeslips is a proven product and the most expensive of the three. Quickbooks is the least expensive, easiest to use and can handle most of your legal nurse consulting business’s accounting and banking needs as well as your billing and invoicing.

Now, new software is being created that is entirely web-based. For example, MakeSomeTime is totally web-based and allows free access once you register. It gives you the ability to log in, track your time and then create invoices from those logs. Because it’s free, it’s the most economical solution for new Certified Legal Nurse Consultants looking to minimize office start-up expenses. You can pay to upgrade for additional services but I suggest you try it free first.

In short, whatever billing application you choose, whether a free web-based application or a more robust PC-based service, make sure it works for you and your legal nurse consulting business. Also make sure you select one that can grow as your CLNC^® business grows.

Success Is Inside!

Here’s a great example of a CLNC^® consultant who didn’t underprice herself. She stood tough with attorneys who tried to negotiate her into a set fee on a case instead of her regular hourly rate. She didn’t bite that hook and now projects that she’ll bill $20,000 on the case. Congratulations for standing firm Denise, and earning what you are truly worth!

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Tax season will be here before you know it. Choosing a CPA is a necessity as you begin your legal nurse consulting business and as your CLNC^® business grows. This experience need not be a daunting one.

Match the CPA’s Service to Your Needs

Your main focus should be to match the needs of your CLNC^® business with the services provided by the CPA. CPAs can:

1. Set up your books – A CPA can help you determine your chart of accounts, set up record-keeping guidelines and generally get you started. A CPA can also review your records and tax returns to be sure you’ve made no blatant mistakes.
2. Prepare all tax returns – These can include both Federal and state tax returns for personal, corporate,  payroll, sales tax and other business-related filings. While a CPA may review returns you have prepared, the CPA will not sign off on them unless he completed the return. A CPA can also help in the event of an audit by the IRS or any other taxing authority. You may also want to consider a payroll service to handle your payroll needs, including tax filings and records compliance.
3. Provide managerial advice – A CPA who is well informed about your legal nurse consulting business can often provide tax and cost saving suggestions as well as help you make informed decisions about your business based on your financial statements and tax returns. Tax laws and reporting requirements frequently change, and helping you stay abreast of these changes is an important role of the CPA.
4. Provide complete bookkeeping services – Some CPA firms have bookkeepers on staff who perform the record-keeping the CPA requires for your financial statements and tax returns. While this service is not free, you gain billable hours to devote to your CLNC^® business at a higher billing rate than what you would pay for the bookkeeping services.
5. Help with computer applications – A CPA may be able to guide you in choosing the appropriate accounting software package for your business. Easy-to-use, complete accounting software packages, such as Quicken, Quickbooks and Peachtree are available as are tax preparation software (TurboTax, Tax Cut).

Find the Right Professional

To begin your search for the right CPA, consider networking with other business owners, family members and friends. Other sources for referrals are local legal and professional associations. Each state has an association of CPAs that can give you names. The Internet can also be a source for names of CPAs in your state. One helpful website is aicpa.org which offers a list of State Boards of Accountancy that can be accessed online to research names and verify licensing.

When you have narrowed the field, interview each candidate. Verify the CPA’s license with the respective State Board of accountancy. Take previous tax returns and financial statements with you to give each candidate a chance to understand your business. Ask what their specialties are and if they have worked with consultants or other business owners previously. Request references and contact the references, asking how helpful and accessible the CPA has been for them. If at all possible, have the CPA come to your office. This can help the CPA appreciate where you are in your business and where you want to go in the future. Your focus should be on finding an individual who is compatible with you and knowledgeable about your CLNC^® business. Assess whether the candidates have answered your questions thoroughly and used terms you understand.

Here are some additional factors to consider when choosing a CPA:

• Size
  The size of the CPA firm is important. Large firms can be costly and less likely to give you personal attention. However, they will likely provide a wider range of services than a smaller firm. A sole practitioner can provide personal attention but may offer fewer services, have less time to devote to staying current and might become overwhelmed by a growing business. You may want to start with a sole practitioner and, when your needs outgrow his services, move on to a larger firm.

• Credentials
  Check the accountant’s credentials. An individual with the CPA designation has met state licensing requirements and passed a difficult two-day national exam. CPAs who belong to the American Institute of CPAs (AICPA) are governed by a strict code of ethics and must complete extensive continuing education requirements. Inquire about association memberships and how active the CPA is in those organizations.

• Integrity
  Integrity and honesty are also a major consideration. Some CPAs stretch the meaning of the law. Be sure you are comfortable with the interpretation your CPA gives you. If you have any doubt about the advice the CPA gives you, get a second opinion.

Be sure to get the fee schedule in writing so you can budget to make the best use of the CPA’s time.

Don’t hesitate to replace your CPA if you find that your needs as a legal nurse consultant are not being met. When you consider the dollars you are losing by using an inefficient CPA, it will help you justify the time you will spend on a search for your new “financial partner.”

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We’re all looking for a few ways to save money – whether it’s the budget for our legal nurse consulting business or our family budget. This week’s Tech Tips will focus on some innovative ways to save money.

A recent headline in one of my tech journals exclaimed that Dell Computers has made over a million dollars (U.S.) from Twitter. Not being a Twitter subscriber, I was immediately curious how they could do this. It turns out it’s pretty simple. Dell has thirty different accounts on Twitter, each with a specific purpose. But if you subscribe to the Twitter stream for Dell Outlet you’ll get special offers on computers and other Dell products. That’s one way to get something useful out of Twitter. For those of us who aren’t “Tweets,” you can also use your blog reader to subscribe to a variety of Dell’s RSS Feeds that offer special deals, support and other information.

My mom was an inveterate coupon clipper (she also collected S&H Green Stamps if anyone remembers those). I have fond memories of her clipping through newspapers and magazines in search of 5 cents off this, 10 cents off that and driving across town to catch double coupon day at the Acme market. If you’ve ever used a shopping cart to check out after an Internet purchase (especially on Amazon.com), you’ll often see a box asking you for promotional claim codes. Ever wonder where everybody else but you gets these? It’s pretty simple – there are any number of websites on the Internet offering coupons (I’m trying to picture my mom and her scissors and a computer screen – too funny) but most are for groceries and other useless stuff.

One truly good site is RetailMeNot.com. This site allows you to search for coupons for a variety of items by category and instead of toothpaste, it offers technology. You can actually search for computers, software, consumer electronics and more. Once you get into the computers category, you’ll find a searchable listing of coupons by manufacturer and by reseller. If you’re willing to spend some time searching you’ll find some great bargains here (I repeat: if you’re willing to spend some time searching). Some of these aren’t really coupons and will point you to special offers by web merchants that you may not have found on your own. They also rate “unreliable” coupons to help keep you from getting outfoxed. Good luck!

My last tip on saving money – other than Mozilla Firefox with its really cool add-ons, Thunderbird for email and most Google Apps – don’t download free software off the Internet. If you must, do a simple Google search for that software and include the words “bugs, complaints, issues, malware” in your search. This is a pretty good way to see if what you’re about to download is freeware or malware. At the risk of painting my pixels with too broad a brush, lots of free software is really malware. You don’t want malware on your computer and the best way to get it is to download a cool cursor, load an off-brand “required player” for a video or song, or sign up for a free virus scan at a website you’ve never heard of before. Free can cost you a lot of money and time when you get your identity hacked or have to dial 1.800.Call.A.Geek or haul your computer off to get it cleaned and vaccinated.

Keep on Techin’,

Tom

Read Part 1. Read Part 2.

How has your income level changed in this economy?

Dale: Vickie, I’m proud to say that last year I was a little ahead with my legal nurse consulting business compared to the prior year – which is saying something when so many other types of businesses experienced a downturn. I’m going to be away for most of January, on a trip to East Africa. People are amazed that I can afford to leave my business during this economy.

Every attorney I have a case with or who I am on the verge of getting a case from will have a contact number to call me directly, if I’m needed. I also have someone for them to call if they need a live body to take care of something while I’m gone. And I’ll be in contact with everyone by email. I’ll never disappear so that a client can’t find me, which gives them a level of comfort yet doesn’t keep me anchored to my desk. That’s one of the joys of being a CLNC^® consultant.

Do you still love being a Certified Legal Nurse Consultant as much as you did in the beginning?

Dale: More. I’m 60 years old and I can’t imagine ever retiring. Every case is different. Every situation is different. People often ask me what a typical day is like. There isn’t one – and that’s what I love about what I do. I feel like Columbo putting the pieces together in a puzzle that deserves my special kind of CLNC^® expertise, and it’s fun.

I think being a CLNC^® consultant is the best of all worlds for RNs. We get to use our nursing experience and expertise, we get to use our brains and we also get to be independent. We interact with people who appreciate us – working with attorneys is much better than working with physicians. Attorneys think we’re terrific.

Any CLNC^® consultant who is feeling bombarded by bad news in the media should just ignore the economy and keep doing what they’ve been taught by Vickie Milazzo Institute. The legal nurse business is out there, perhaps more than ever before. Attorneys need us, perhaps more than ever. Keep marketing, keep the lines of communication open and you’ll get where you want to be.

Success Is Inside!

Read Part 1. Read Part 3.

Obstacles have to be overcome in every economy. What obstacles are you facing now?

Dale: Vickie, my biggest obstacle is time. Particularly trying to squeeze in time to continue marketing every month. I’ve been a CLNC^® consultant for 9½ years, so I don’t have to market at the same level I did in the beginning, but I know that being busy is no justification for not marketing. You taught me to always keep marketing to assure the phone is ringing.

Another challenge during a tough economy is maintaining attorney-client relationships with attorneys who may be dealing with the stress of their clients. Do you have any suggestions?

Dale: One word: communication. In any situation, that’s the factor that enables me to enjoy an excellent relationship with my attorney-clients and to keep them coming back. I’m always a phone call away, and I never let much time pass without being in touch. But more important, anytime I decide to go a different route on a case from what we’ve discussed, or when I have some new ideas, I don’t go forward until I call and talk to my attorney-client. Usually, they’re fine with whatever I’m suggesting as the Certified Legal Nurse Consultant, but they appreciate being kept in the loop. Then, if they get a bigger bill at the end of the month, they’re not startled. Nobody likes surprises of that nature.

Also, if I see something in the record that’s not good for the attorney’s case, I pick up the phone quickly and lay it on the line. It may not be what the attorney wants to hear, but he always appreciates the heads up.

Forging ahead when the world is taking a “wait and see” position shows a very independent and entrepreneurial disposition. How has your independent streak contributed to your CLNC^® success?

Dale: Tremendously. Every day I do what I can to make certain my business is secure, my work is secure, that I have all my ducks in a row and that I have new business coming in. When the world seems to be falling apart around you, everything you do in your legal nurse consulting business takes on a different level of importance. For me, it’s about maintaining what I have and gaining a little too.

What is your best piece of advice to CLNC^® consultants getting started right now?

Dale: My biggest piece of advice is to be prepared for rejection and frustration and to keep plowing ahead. It will pay off. CLNC^® consultants who say, “I’ve spoken to ten attorneys and nobody’s interested,” are going to lose out. Business is a numbers game, and ten attorneys are nothing. Even CLNC^® consultants in rural areas, where attorneys are not as numerous as in cities, can succeed handsomely in their CLNC^® business. You don’t have to market only in your own backyard. You can market anywhere.

In any economy, you need to make a marketing plan and stick to it. Whatever marketing methods you use – whether contacting attorneys in person, on the phone or via mail – be consistent and follow your plan. And always follow up.

Vickie, you always say, “Do what works, not what’s easy.” I’ve known legal nurse consultants who created their marketing packet, mailed them, then sat back and waited for the phone to ring. They were surprised when no one responded. The same thing happened to me. Even when I sent out ten letters and followed up with a phone call, at least half the attorneys said they never received my packet and had no idea who I was. Attorneys, like the rest of us, toss mail they don’t readily recognize.

So I call my attorney-prospects before I mail anything. It takes more time but new CLNC^® consultants should try it.

If you can’t always get through to the attorney, that’s okay; ask for their voice mail. The attorney gets to hear your voice, who you are and why you’re calling. A brief voice mail presentation lets him know that you’re a professional who understands his legal practice. He knows you’ll be sending a packet and that you’ll be following up. I get a much higher success rate when I call first.

Success Is Inside!

Read Part 2. Read Part 3.

For the first time in my memory nurses are getting laid off in significant numbers. The deteriorating health of our economy is affecting almost every U.S. job – this includes nursing. But as I am hearing from the registered nurses I’ve trained, a career as a Certified Legal Nurse Consultant is a recession-proof choice.

My sincere gratitude to Dale Barnes, RN, MSN, PHN, CLNC for taking the time to talk with me about how the economy has affected the health of her CLNC^® business. Dale has been a CLNC^® consultant since 1999 and specializes in medical malpractice, bad faith insurance and general personal injury.

How is today’s economic climate affecting your CLNC^® business?

Dale: Vickie, I’m here to tell you working with attorneys is recession proof. I’m busier than ever. Everything a CLNC^® consultant does is related to medical issues and healthcare, and those cases are still pouring in. During a tough economy, some people look at a lawsuit as another revenue stream. So attorneys are busy. Even when I tell my attorney-client, “There’s no merit here,” I still get paid, plus it keeps nonmeritorious cases out of the system.

Are new attorneys approaching you?

Dale: Just last week a new attorney called and hired me as a legal nurse consultant for his bad faith insurance case. When people are financially strapped, an insurance claim becomes an asset. The claimant expects the insurance company to cover everything so when a claimant feels undercompensated or cheated, they call an attorney.

What other kinds of medical-related cases are you seeing?

Dale: Everything. I just finished a large home care defense case. A man’s wife had multiple sclerosis, and he was her sole caregiver, refusing to have anyone else in their house. Over the years, as his wife’s health deteriorated, the home care nurses noted that he was noncompliant with instructions for his wife’s care. He wouldn’t turn her every two hours, as directed, and she got one decubitus ulcer after another. She had a Foley catheter for a time and got a urinary tract infection. When she finally turned septic and died, the husband filed a suit, claiming that the wound care supplies the nurses used had caused her infection. This was off base, but the case went on and on. He was obviously trying to make a buck. I helped the defense put together a strong case, and the husband struck out.

You must have felt like a CLNC^® champion on that case.

Dale: Absolutely. I had another case recently that involved using restraints on a hospital patient. The nurses had orders to use restraints but decided not to. The woman fell out of bed, suffered a subdural hematoma and died. A terrible situation, in which fault and liability are not clear.

So the types of cases run the gamut. I’ve had a number of motor vehicle accident cases. I have one attorney-client who does nothing but dog bites, and he sends me several cases every week. They take a long time to come to fruition, because the cases usually involve children, but this attorney’s business isn’t down one bit, and I’m still getting all of it.

Do you handle more cases for defense or plaintiff attorneys?

Dale: About equal. Whichever side I’m on, if I see a weakness, I tell my attorney-clients up front. And, as you teach, Vickie, we are saving our court systems time and money by keeping nonmeritorious cases out of court – another plus in a down economy.

Do you use a network of CLNC^® consultants as subcontractors to help you with your busy caseload?

Dale: Yes. I use CLNC^® consultants for two reasons: 1) to leverage my time during those periods when my caseload is just too much for me to handle, and 2) when I get a case that is out of my area of expertise. Being part of the National Alliance of Certified Legal Nurse Consultants is the best place to look for my CLNC^® subcontractors.

Success Is Inside!

Recession. Market downturn. Doom. Gloom. Bailout, schmailout. Nurses getting laid off in great numbers. In spite of all the negative headlines out there, according to the experts, a recession is actually your ticket to success as a Certified Legal Nurse Consultant. That’s right – kicking your legal nurse consulting business into high gear during a recession is a great idea.

It’s amazing, but true! Recessions are typically among the strongest times for new business startups. This means that the time to reignite your certified legal nurse consulting business is now.

5 Reasons Why a Recession Is the Best Time to Kick Start Your CLNC^® Consulting Business into High Gear

1. During a recession, injured people are more likely to pursue their legal rights and hold others accountable for their actions.
2. Fears of a downturn may cause fewer nurses to venture out from hospitals to become Certified Legal Nurse Consultants. That’s more attorney business for you.
3. Attorneys will worry about the cost of expensive MD experts who charge as much as $1,000/hr and quickly see the wisdom in relying more on cost-effective Certified Legal Nurse Consultants who charge $125-150/hr.
4. Lawyers will realize that they’re going to have to work harder to keep their clients happy – and they’ll need the specialized expertise of Certified Legal Nurse Consultants to do so.
5. Hospitals are freezing salaries and laying off nurses. Bonuses are unheard of. Your earning potential as a Certified Legal Nurse Consultant is unlimited.

“When everyone is running to the exits, the people that stand tall and firm almost always end up making a fortune. If you’re not yet in a business, this is the absolute prime time to get in.”

– Bill Bartmann (Self-Made Billionaire)

Success Is Inside!

You’ve heard the news: bailouts for this industry, bailouts for that industry, bailouts for everyone except for the honest business woman or man. It seems like you have to be a pretty big crook or a terrible money manager to get a bailout from the government.

This morning, over some healthy green tea, my staff and I discussed what a government bailout might look like for the average entrepreneur:

• A pair of rose-colored glasses to help you to see the financial news in a better light.
• A lottery ticket to give you something for your retirement fund that has better odds than the stock market.
• A used TSA quart-size baggie containing leftover government office supplies (that you and I paid for anyway) such as bent paperclips, broken black binder clamps, stump-ends of staples and an empty bottle of white glue to help keep your business together.
• A roll of duct tape in case the above fails (BTW – here in Texas my friends call it “hunnert-mile-an-hour tape” and you can too – when your business gets rolling again).
• An open, and partially consumed, bottle of Jack Daniels (probably from the Treasury Secretary’s liquor cabinet) to help take your mind off your financial problems.
• A bottle of extra-strength Tylenol^® to help cure the effects of your late-nite discourse with “Gentleman Jack.”
• A bag of generic coffee to give you something to wash down the Tylenol^® that morning and give you the energy to go to work and focus on your business (and not the economy).
• And finally, a Travel Doodle Pro to help you stay in communication with your office after your Blackberry^® account is cancelled.

All of this would arrive postage due, in a damaged box, courtesy of the folks who brought you the sub-prime mortgage crisis and the Big Three bailout.

I’m hoping that it doesn’t come to this, but in a world that’s seeing its first big nursing layoffs, I’m glad I work in what my friend, Dale Barnes, (Check back for an upcoming interview with Dale) calls a recession-proof profession, legal nurse consulting. One thing’s for sure – the stock market may run short of money, but America will never run short of attorneys!

If the government is going to let the auto industry suffer and die, it won’t help entrepreneurs either. Don’t wait for the government to bail you out. Only you can bail yourself out.

Success Is Inside!