Seven Words to Learn Before You Apply for Your Next Loan
Growing law firms need cash, but cash can get tight. All firms should have access to reserve cash, such as a line of credit, but applying for a loan can be nerve-wracking — especially when bankers start throwing out unfamiliar terms. One of my clients (now in his second year on the Inc. 5000) needed […]
Podcast – Law Firm Financial Management
KPI’s – Do you know the Key Performance Indicators in your law firm? Want to know what you should be looking at and monitoring? How about the best accounting tool for law firms? To learn more, check out the Non-Eventcast podcast where CathCap Founder and President, Brooke Lively talks about Law Firm Financial Management. Listen […]
How to Set An Appropriate Billing Rate
Your billing rate can’t be a guessing game. It has to be something that you come up with using data – data that you have in your own firm. But what’s the magic formula?
How Much Should I Pay for a Billable Employee?
One of the hardest parts of managing a law firm is the delicate balance between hiring the right number of staff members and ensuring that you can afford them. At different points in your practice, you’ll be tasked with tough questions. The solution to many of these problems is simple: hire the employees you need and create a compensation plan that is profitable for both you and the employee. Of course, that is easier said than done. So how do you figure out what you can pay a billable person? Read on to learn more.
How is it Possible That I OWE Taxes at My Firm?
You’re a good business owner. You know that it’s important to continue to invest in your business with a portion of your profits and you’ve worked to pay down your debt. The logic: “I pay down my debt and have no money left, not only do I have a lot less debt, but I also owe no taxes.” Not always so! Read on to learn more and see how your biz can prepare for tax season.
Why Do I Need a Budget for My Law Firm?
Everybody says you need a budget. But do you? No, not exactly. You don’t really need to have a budget in the traditional sense. What you need is a “Profit Plan.” If that sounds new to you, it’s because it’s not a real thing. We made it up. But once you understand what a profit plan is and how it differs from a budget, you’ll be able to understand why it is a better alternative to traditional budgets and budgeting.
What is the Purpose of a Balance Sheet?
You’re tasked with being both an attorney and a business owner. Your strength is the former, but you’re being placed in charge of creating, reading, and understanding a lot of documents in order to handle the latter. We often get asked by attorneys what some of these documents are and why they matter. What is the purpose of a balance sheet?
When Should I Obtain a Line of Credit?
Despite your revenue, your income, or your potential for high profits, most attorneys are also seen as big risks. That is why it is so important to make yourself “bankable” and to understand the choices you have available to you as you try to obtain the loans, lines of credit, and financial support you need.
How Do I Create a Budget?
How Do I Create a Budget for My Law Firm? Most of us understand, instinctually, the value of a budget. We get the idea that it helps to know where your money goes, how much you can spend in different parts of your business, how much you have left over, and more. But we also […]
Embracing Change and Shifting Priorities
Change is hard. Whether you are changing for great reasons (growth) or bad ones (COVID) it still means that the targets you set are constantly moving. Instead of a set it and forget it attitude, you need to be a little more on top of things – there is no autopilot for most companies right now. This […]
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