Legal Wise Toolkit
Streamline your back-office accounting process and up your documentation game
Track Your Way to Financial Success
The Easy-to-Use Financial KPI Template
Growing revenue is often the main goal for any law firm owner. Landing more clients, expanding services, and increasing fees can make your firm look successful on paper. However, without properly tracking your expenses, all that hard-earned revenue may not translate into increased profits. As your law firm grows, it’s essential to not only focus on bringing in more money but also on managing where that money goes.
In Episode 15 of The Law Firm Empress podcast, Jessica emphasizes how critical it is for law firm owners to evaluate their expenses regularly. Many firms focus so heavily on increasing revenue that they overlook expenses, which can cause profitability to stagnate or even decline. But with the right strategy, your firm can turn growth into profitability by gaining control of its financials.
Many law firm owners find themselves in a situation where revenue is growing but profits are not. This often leads to frustration: “Where is all the money going?” The answer lies in the details—tracking your expenses is the puzzle piece that completes the picture of your firm’s financial health.
As law firms grow, so do their expenses. New tools, software, office supplies, marketing campaigns, and staffing costs can quickly add up. However, not all of these expenditures may be necessary for the firm’s success. For example, one client of Silver Peaks CPA was concerned about the amount of money spent on office snacks. Upon closer inspection, they found that while the $200-300 monthly expense seemed significant, it was actually a morale booster and a relatively small percentage of the overall budget.
This type of analysis can reveal that some costs might be worth keeping, while others should be eliminated.
Marketing and advertising are often significant expenses for law firms, but how do you know whether you’re getting a good return on investment (ROI)? It’s essential to evaluate how much each campaign contributes to your bottom line. Are you spending thousands of dollars on Google ads, billboards, or radio ads without knowing the ROI?
As Jessica explains in Episode 15, not tracking the results of your marketing efforts could mean you’re throwing money away. By analyzing the data, you can pinpoint which strategies are truly bringing in clients and revenue—and adjust your spending accordingly.
Growing firms may also overlook subscription services, software licenses, or unused tools. For example, you may have signed up for a legal software platform with multiple user licenses, but if you’ve downsized or shifted teams, you could still be paying for users you no longer need. Regular expense reviews can uncover these hidden costs and help you save money.
As your law firm grows, you need to ensure that your expenses are aligned with your goals. Every dollar spent should contribute to your growth strategy, whether that’s increasing efficiency, enhancing client service, or boosting revenue. By tracking expenses and tying them to specific business outcomes, you can make more informed decisions about where to allocate resources.
At Silver Peaks CPA, we specialize in helping law firms like yours not just grow, but thrive. Our CFO advisory services focus on providing actionable insights into your firm’s financial health. We help you analyze expenses, track profitability by case type, and develop strategies to cut unnecessary costs while maintaining operational efficiency.
Ready to take control of your firm’s financials? For a limited time, we’re offering 15% off when you prepay for 6 months of our services—and we’ll waive the onboarding fee! Don’t miss this opportunity to boost your profits and streamline your expenses.
📞 Book a consultation today to secure your spot!
And don’t forget to check out Episode 15 of The Law Firm Empress podcast to dive deeper into how you can keep your firm’s expenses in check while growing your revenue. Stream now 🎧
Silver Peaks Accounting Services offers a range of personalized accounting and financial planning services to meet the unique needs of your business.
You can set up a free discovery call where we’ll discuss the needs of your business, and how we can best partner with you.
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Colorado CPA Firm License No: FRM.5000507 | Supervised by Jessica Gonifas, CPA License No: CPA.0024071
