There are major milestones in law firm growth. One of the first stages is breaking $200,000 per year in annual revenue. Cash flow starts to level out, and it feels more like a business than a job you created for yourself.
Maybe you hire your first employee, or use contract attorneys. The pace picks up and now you’re looking at office space. Expenses fluctuate and now… you have less and less time to manage financials. But, they are more important than ever.
The transition from practicing attorney, to being the CEO of your law firm or Lawprenuer as we like to call it includes stepping away from things that aren’t a good use of your time.
Many attorneys cling to tasks that are tedious ore repetitive because they find comfort or purpose in doing their own bookkeeping. In reality, that work is actually stealing revenue away from their business. Doing it more harm than the good.
The Kahuna Accounting team are some of the most honest, and knowledgeable law firm financial professionals I have ever met. Each team member reminds me of that person in your office, that you enjoy hanging out with. The one who gets things done, that you can laugh with at the same time. They genuinely care about their clients, know their stories and most importantly… their goals.
Reliable Monthly Accounting Services
Imagine a list of everything an in-house bookkeeper would do. Each item completed by a team of professionals who know law firm financial reporting inside and out.
Account reconciliation, including three-way reporting for mandatory IOLTA state law firms, payroll, plus a variety of business-critical reports are prepared for you. Every month, on time, every time.
Instead of making time to do the bookkeeping, or chasing down reports, you spend your time reviewing projections and financials like a true law firm CEO. Your team lead will meet with you to discuss changes in statements, potential red flags or upcoming cash flow challenges. Found in some of these reports:
- Balance Sheet
- Cash Flow Statement
- Profit and Loss Report
- Accounts Payable Report
- Accounts Receivable Report
- Budget & Budget Variance Reports
When law firms run into cash flow problems, it is often because they were doing the most basic accounting just to get by. Buried in client work, and unaware that nearly half of their clients were paying bills late. Or, that a massive tax payment was on the horizon.
Which brings me to our next topic… Tax time.
The first quarter of the year… or for some the third, shouldn’t be a nightmare. One of the major benefits of working with Kahuna is that your months are reconciled, closed out and neatly packaged ready for that wonderful time of year most business owners dread like the plague.
Best of all, no change of systems necessary to make that happen!
Kahuna already works with the systems lawyers use most. QuickBooks, Xero, and Clio, of which they are a Gold Certified Partner. Which as Micky Deming of the Kahuna team shared is one of the biggest hurdles to proper law firm financial management:
“The most common challenge we see are that the systems don’t match up. A law firm may be using a case management system, and an accounting platform. But, the numbers in the bank account never match up with the other two programs. About ninety percent of the law firms we see have this problem, and had given up.”
Kahuna solves this problem by investing in a diverse team of professionals educated in every platform. Which, to do so, a law firm would have to employ someone who knows basic accounting principles, law firm practice management backwards and forwards, and their accounting software. Who has time for that?!
The team goes out of their way to make financial management and reporting the easiest part of running your law firm business. All you have to do is focus on what you are great at, being a lawyer.
Are you ready to let go, and be a Law Firm CEO?
To recapture lost time and gain a level of confidence in your business’ financial health that will motivate you to make your next move. Then call Kahuna and step into the role of law firm CEO like a BOSS.
If your firm needs greater financial insight, I invite you to join Kahuna for a Strategy Session where they will walk through your system and provide insight on how you could add efficiency and profitability to your financial world.