If you’ve ever been an employee, you know the feeling of relief when you finally receive that raise you’ve been waiting for after a couple of months.
But what happens when the tables turn and you’re the boss handing out the salaries?
You would carefully have to analyze the amount that needs to be allocated to every employee and manage your other finances related to operational expenses.
Being the owner of your law firm v.s. Being a lawyer of another firm is a totally different scenario.
There’s no question that the risks are higher when you own a business. If the law firm shuts down, you lose everything, whereas you just hop on another job opportunity if you’re an employee.
That’s not to say you shouldn’t start your law firm. Instead, be proud that you have the guts and responsibility to run your own firm!
But you should have in mind that taking care of your finances is of utmost importance and should never be tossed aside.
That’s why considering these three-pointers as you begin your journey will help you save money in the long run.
And here they are:
1. Train Your Accountant
If you want to stay up-to-date with bookkeeping software, then you need to update your employee’s skills.
Even if your accountant is the crème-de-la crème of accountants in the area, that doesn’t mean they won’t require additional training.
Some software has complicated options that make it tough to figure out on your own. So just buying the software and expecting your accountant to do everything from the get-go magically is a recipe for a potential financial blunder.
You’ll be wasting your time and money trying to work things out for weeks and might end up regretting your expensive purchase.
Instead, it’s best to consult a company that provides law firm accounting services that can guide you with proper advice on current accounting software and offer the know-how you need.
2. Avoid Case Mix-up
The worst thing that can happen when you finally have captured that wealthy client is a case mix-up.
Imagine your client starts out with Associate A, who reads their file and tells them they will oversee their case. However, Associate A suddenly gets sick, so Associate B gets assigned the same case.
But there are no notes or a case summary on the client’s file, so Associate B has to start all over again!
Wasted Time, more money loss, and an angry client are all that wait for you on a Monday morning.
To prevent this, you should tell your associates to jot down information and update client sheets frequently. Moreover, each case must have its respective owner to avoid any future mishaps.
3. Keep Track of Additional Spending
While it might be tempting to advertise your firm on social media or Google Ads, remember to monitor your advertisement campaign.
Depending on how frequently you want your ads to appear and make impressions on people, you should check either on a daily or weekly basis.
That being said, this requires an additional task force that stays on top of marketing campaigns. So proceed with caution when you want to start advertising your firm.
