Transitioning from working for another firm to running your own comes with a steep learning curve. Here are the top 3 financial must-dos for new law firm owners:
1. Invest in a Practice Management Platform
Standard tools can’t replace dedicated practice management software. The minimal investment in subscriptions and training outweighs the potential losses from low conversion rates, client attrition, or non-compliance.
2. Simplify Client Payments
Ensure clients can easily pay you by using integrated payment options in your practice management platform or adding them yourself. Offer various payment methods to maintain cash flow. While you can evaluate costs and methods later, prioritize ease and promptness of client payments.
3. Maintain Vigilance with Trust Accounts
Perform monthly 3-way trust account reconciliations. Understand and adhere to the trust accounting rules relevant to your state(s) and practice area(s). Ensure that no firm operating expenses are paid from trust accounts.
Ensure you’re working with an accountant who can assist you with all the above tasks and provide professional financial guidance.
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