In this episode, Jessica introduces the Profit First system tailored for law firms, emphasizing the importance of prioritizing profit as a non-negotiable expense. She outlines the setup of five essential bank accounts—Income, Profit, Owner’s Compensation, Tax, and Operating Expenses—and discusses how to allocate income based on target percentages customized to a firm’s unique needs. Jessica highlights the significance of maintaining a consistent allocation schedule, regularly revisiting and adjusting allocations, and starting small to build financial discipline. By implementing these steps, law firm owners can achieve greater financial stability and sustainable growth.
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
