Law school trains you to be a lawyer, not to run a business. Without formal business training, you might not be aware of the treasure trove of information your financials represent. Or the power this information gives you as a law firm owner.
So, how do you know your law firm is financially healthy?
Over many years, the Academy has worked with numerous small-to medium-sized estate planning firms to collect and analyze profit & loss statements. In the course of this work, we’ve uncovered certain financial benchmarks that serve as reliable indicators of the health of an estate planning practice.
These benchmarks serve as a useful starting point for assessing your firm’s overall fiscal health, interpreting why certain financial indicators exist within your firm, and understanding how to go about making changes, should you decide to do so.
Once you understand the benchmarks, financial analysis becomes key. This is how you keep your finger on the pulse of your firm. The rule of thumb is that you want systems in place that will allow you to review last month’s numbers by the 10th of this month…every month.
And if you’re an Academy Member, you have the chance to compare notes and learn from colleagues nationwide. Here’s how it works:
Members submit their financials for the prior year during the month of February.
All participating Members’ financials are entered into a database anonymously and a report is prepared for a private meeting at each Spring Summit.
Can you imagine sitting down with actual estate planning law firms, behind closed doors, and being able to compare your firm numbers with any other firm from across the country?
Owner’s compensation, staff salaries, what you or another Member spent on marketing… all creates the environment for an incredibly open dialogue among Members. Most say they’ve never experienced a collaborative, generous conversation with other lawyers like this in their entire career.
- To download your own copy of the Academy’s exclusive report about Financial Benchmarks and Analysis, CLICK HERE to fill out a quick information form and we’ll send it over immediately!
Do you have additional questions about analyzing the numbers in your law firm? Give us a call at (800) 846-1555. We’re always happy to walk through your numbers and your goals together with you.