Your Host
Christopher T. Anderson

Christopher T. Anderson has authored numerous articles and speaks on a wide range of topics, including law firm management,...

Many lawyers are hesitant to regularly look at their finances. In addition to the regular workload and marketing, maintaining a budget seems overwhelming and is often undervalued in time management. After all, when managing a business, there are so many different factors that can affect cash flow and finances: personnel issues, economy changes, client payment plans, marketing and advertising, clerical errors, and many others. Although it may seem difficult to organize and prioritize the finances of a law firm, there are six key categories that break down the budget so that it can easily be managed.

In this episode of The Un-Billable Hour, host Christopher Anderson interviews financial analyst Brooke Lively about the six key numbers every attorney should know. Three are involved with the money that exists or has already been spent: cash position, budget, and accounts receivable. Lively emphasizes the importance of knowing how much the firm has, how much it is owed, and what is being spent. She recommends that an attorney then take these numbers and analyze them to provide cash projections, budget variance, and income variance. Any noticeable changes can lead to modifications to save the company unnecessary losses. By simply paying attention to these six numbers each month, the success of a lawyer’s practice could greatly increase.

Brooke Lively currently serves as a CFO to over twenty small and solo law firms around the country through her organization, Cathedral Capital. She focuses on fundamental analysis, firm modeling, and valuation backed by strong quantitative skills. She holds an MBA with a double concentration in Investments and Corporate Finance and has been awarded the Chartered Financial Analyst certification.

Brought to You by
Episode Details
Published: July 23, 2014
Podcast: Un-Billable Hour
Category: Best Legal Practices , Legal Support , Practice Management
Podcast
Un-Billable Hour
Un-Billable Hour

Best practices regarding your marketing, time management, and all the things outside of your client responsibilities.

Listen & Subscribe
  Apple Podcasts
  Google Play
More Episodes
04/30/18
Addressing Access to Justice with Blockchain

Tyler Todd talks about the access to justice problem and how blockchain and other technology could be a solution.

03/27/18
Filling in the Gaps: Freelance Lawyers to the Rescue

Greg Garman from Lawclerk talks about when firms should hire freelance lawyers to provide different levels of expertise and free up a law firm’s...

03/06/18
Demystifying Practice Management Software

PracticePanther CEO David Bitton dives into the details of just how practice management software can lead to a more focused and efficient law firm.

01/30/18
Systems Keep You Sane

Kristen David talks about the importance of using systems and how they help law firm owners, staff, and even clients.

11/30/17
The Seven Mindset Habits for Law Firm Growth

Michael Mogill talks about the seven mindset habits that lawyers can use to run a more successful and cohesive law firm.

10/26/17
Blockchain and Cryptocurrency: What Lawyers Need to Know

Joshua Lenon talks about blockchain, cryptocurrencies, and why it's essential for lawyers to know what these technologies are and how they work.