John Scott: Improving Your Law Firm’s Financial Metrics

Description

In this episode, Steve Fretzin and John Scott discuss:

Storytelling with the numbers that leads to a logical conclusion.
Why spending time in the numbers is key.
Dynamic forecasting and cash flow.
Four categories of important financial metrics lawyers need to look at to grow their firm.
Improving poor billing hygiene.

Key Takeaways:

If you pay attention to the numbers regularly, you can make necessary course adjustments along the way rather than scramble at the end of the year to make sure everything is fine.
Your goals need to be realistic based on your capacity. Set up your goals, even challenge goals, but then you need to look at them and work through how they can be achieved.
If you want more rainmakers, you have to train them to be better at what they do.
Bring in a non-lawyer finance team to focus on your firm’s finances. Delegate those things that are not your superpower. Let them focus on the numbers and keep you appraised of where they are at now, not just what they used to be.

"The biggest part of running your business’s dynamic forecasting is taking the data points that we have within the practice management system and within our accounting system to determine cashflow, 3-6-9-12 months out so that we know where we're going." — John Scott

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Episode References:

The E-Myth by Michael E. Gerber: https://www.amazon.com/Myth-Most-Businesses-Dont-About/dp/0887303625

About John Scott: John Scott is a Partner in Tax at Anders CPAs + Advisors. With over thirty years of experience, he brings a breadth of financial knowledge and a deep expertise in advising law firms. With a long track record of success that includes firms of all sizes and specialties, John helps maximize profits via cash flow management and KPIs, while minimizing taxes with his extensive understanding of the tax code.

Leading the legal industry division of his firm’s Virtual CFO services, John offers strategic advising to mid-sized law firms, using a customizable, industry-leading tech stack that allows firms to make data-driven decisions. He advises on strategies around: staff utilization, cash flow planning, when to hire, creating clear career paths, trust accounting, accounting controls, and partner distributions. He is the author of a forthcoming book on creating a roadmap to success for law firms.

Connect with John Scott:

Website: https://home.virtualcfo.cpa/johnscott https://anderscpa.com/virtual-cfo-legal/

Email: jscott@anderscpa.com

Book: Judicial Dollars and Cents: https://home.virtualcfo.cpa/johnscott

LinkedIn: https://www.linkedin.com/in/john-c-scott-cpa/

LinkedIn: https://www.linkedin.com/company/vcfobyanders/

Connect with Steve Fretzin:

LinkedIn: Steve Fretzin

Twitter: @stevefretzin

Instagram: @fretzinsteve

Facebook: Fretzin, Inc.

Website: Fretzin.com