As a CPA who works exclusively with law firms of up to 30 employees, I’ve had countless initial consultations where law firm partners open up about their worries. These conversations give insight into the financial challenges and opportunities unique to small and mid-sized law practices.
Here are the most common questions and concerns lawyers bring to the table—and how we address them.
1.) "Are we financially healthy, or are we just getting by?"
Many law firms operate on the edge of profitability, uncertain if their financials reflect true health or a temporary surge. Questions like:
Are we managing cash flow effectively?
Are our billable hours translating into the right margins?
Are we undercharging for our services?
How We Help: During our consultation, we review your revenue streams, cost structures, and client payment trends. We provide clarity on where your firm stands and identify actionable steps to improve margins and cash flow management.
2.) "How can we better manage cash flow, especially during slow months?"
Law firms often face cyclical cash flow challenges, especially if clients delay payments or cases take longer than anticipated. Lawyers frequently ask:
How do we avoid dipping into personal savings to cover expenses?
What’s the best way to build financial reserves for lean times?
How We Help: We design a customized cash flow strategy, including effective billing practices, realistic expense forecasting, and guidance on setting up a firm reserve fund.
3.) "Are we paying too much in taxes?"
Taxes are a major concern, especially for partners balancing firm finances and personal income. Common questions include:
Are we maximizing deductions?
Are we structured correctly to minimize our tax liability?
How We Help: We analyze your firm’s legal structure, ensure you’re taking advantage of all deductions, and create a proactive tax plan that aligns with your long-term goals.
4.) "Are our fees too high or too low?"
Lawyers frequently question whether their pricing reflects the value they provide while staying competitive. Common concerns include:
Are we losing clients because our fees are too high?
Are we undervaluing our expertise by charging too little?
How do we benchmark our rates against the market?
How We Help: We analyze your fee structure, comparing it with industry benchmarks and regional averages. We also assess your profitability per case or client to ensure your rates align with your desired margins. Our goal is to help you set fees that reflect your firm’s value while maintaining a strong client base.
5.) "What’s our long-term financial outlook?"
Lawyers often express concerns about the sustainability of their firms:
Are we saving enough for retirement?
How do we ensure the firm thrives even if I step back?
How We Help: We offer long-term planning, from retirement contributions to succession strategies. Whether you want to scale, sustain, or eventually sell your practice, we create a roadmap to secure your financial future.
6.) "How can I reduce admin work and spend more time practicing law?"
Many partners feel bogged down by financial admin tasks that distract from their legal work. Concerns include:
How can I streamline bookkeeping and payroll?
Are there tools to make tracking billable hours easier?
How We Help: We introduce tools and systems to automate financial processes, freeing up your time to focus on what you do best—practicing law.
Why These Questions Matter
The concerns you raise during our first meeting are more than just numbers—they’re about building a sustainable, stress-free future for you and your firm.
By addressing these issues head-on, we set the foundation for a partnership that gives you clarity, control, and confidence in your financial decisions.
Ready to stop worrying about your finances and start focusing on your practice?
Schedule your consultation today!
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