As the end of the year approaches, one of the most crucial aspects for law firms is accurately projecting income and cash flow. This step not only sets the stage for sound financial management but also directly impacts partner compensation by providing a clear view of expected earnings.

Six questions that managing partners, executive committees and the like should ask themselves to ensure they can get the most from their team to help successfully run the business.

Law Firms need to be earning interest on idle cash

Your budget should align with your Firm’s strategic goals.  Even if you don’t have a big bow on your strategy or like most, just have a general idea of what you would like to do in the coming year, you can still benefit from a well prepared budget.

While usually not financial experts, Managing Partners of small and mid-sized law firms still need to be able to set expectations of their finance and accounting team.

I’ve never been in an accounting department that didn’t need some type of improvement. It’s just evolution, even well run processes need tweaks over time.