Build a Seasonal Cash Flow Plan: The Law Firm Owner's Secret to Taking Time Off Without Stress

TLTurner Group
Jul 16
4 min read

You want to take a week off this summer. Maybe a full month in December. You dream of handing the reins to your team and logging out, guilt-free. But the reality? Consciously ( or subconsciously ), you fear your law firm will stall the moment you step away.

The reason isn't a lack of dedication. It's a lack of planning for seasonal cash flow. If your revenue is unpredictable, your invoices are aging, and your case mix is skewed toward low-margin matters, then yes, stepping away feels risky.

But it doesn't have to be that way. A seasonal cash flow plan can give you the freedom you crave. Let’s walk through the strategy step-by-step, using real examples and practical tips.

Step 1: Know Your Average Monthly Revenue (Not Your Best Month)

It’s easy to remember the big wins. That one $100K settlement. The month you closed four new retainers. But those moments can be misleading.

To plan for a season, you need to know your average monthly revenue across the past 6 to 12 months. Why? Because averages tell the truth about consistency. They show what you can reasonably count on.

Action Step:

Pull a report of total collected revenue over the last 12 months.
Add up the totals and divide by 12. That’s your true monthly average.
Mark your lowest revenue month. That's your floor. Plan conservatively around it.

Example: Attorney Miller pulled her firm’s P&L and found her 12-month average revenue was $43,250. But in July and December, revenue dropped closer to $30,000. Knowing this helped her build a cushion for slower months—and confidently plan a winter sabbatical.

Step 2: Track Your Uncollected Invoices (Cash Flow Killer #1)

You might earn $50K this month but only collect $30K. That gap can destroy your cash flow.

Uncollected invoices are the biggest reason law firm owners feel broke despite being busy. When clients delay payments, your ability to meet expenses suffers.

Action Step:

Run your A/R Aging Report.
Highlight any invoices over 30 days past due.
Assign someone (or automate a system) to follow up weekly.

Quick Fix Tips:

Shorten your payment terms to 7 or 15 days.
Offer incentives for early payments.
Use payment plans before invoices age out.

Real-World Insight: One solo immigration attorney realized that $28,000 in unpaid invoices had been sitting idle for over 60 days. By implementing an automated follow-up email sequence and hiring a part-time billing coordinator, she collected $21,000 in one month—freeing up cash to cover payroll during her August vacation.

Step 3: Identify Your Most Profitable Case Types (Not Just the Busiest)

Not all work is created equal. Some cases drain your time and your staff without producing high returns. Others? They’re lean, efficient, and profitable.

You need to know:

What types of cases yield the highest profit margins.
Which clients pay on time.
Where your team performs best with the least friction.

Action Step:

Review revenue and hours worked per case type for the last 6 months.
Calculate profit margins (Revenue – Direct Costs = Profit).
Rank them. Highlight your top 2.

Strategic Shift: Once you know your winners, prioritize marketing, sales, and internal workflows to support those cases. This ensures that your limited bandwidth goes to high-return work.

Example: A boutique litigation firm realized that their employment law cases yielded 38% profit, while general civil litigation only brought in 17%. They shifted their intake strategy to filter out low-profit clients. The result? $12,000/month increase in free cash flow.

Step 4: Map Your Seasonal Trends (Cash Flow Calendar)

Law firms have natural revenue rhythms. Tax season. Summer slowdowns. End-of-year spikes.

Rather than fight these trends, map them. Use your historical data to anticipate when cash will tighten—and plan accordingly.

Action Step:

Chart monthly revenue for the past 2 years.
Look for patterns: When do you see spikes or slumps?
Create a simple cash flow calendar with high, medium, and low months.

Planning Tip:

Schedule time off during naturally slower periods.
Set aside reserves during busy months.

Real Example: A family law firm noticed a 25% drop in consultations every June and July. Instead of stressing, they pre-scheduled admin catch-up and planned team PTO during that time.

Step 5: Build a Cash Reserve Buffer

Once you understand your average revenue, invoice delays, and high-profit work, you can begin saving strategically.

Baseline Goal: Cover 1 to 2 months of expenses without new income.

Action Step:

Calculate your average monthly expenses.
Multiply by 1.5 for a safety buffer.
Open a separate account just for cash reserves.
Contribute a fixed % of profit monthly.

Bonus Tip: Rename the account "Freedom Fund" to mentally connect it with your goal: taking time off without stress.

Step 6: Communicate the Plan With Your Team

Taking time off doesn’t mean going radio silent. Your team needs clarity to keep the firm running smoothly in your absence.

Action Step:

Set expectations 30+ days in advance.
Assign interim point people for key functions (intake, client comms, billing).
Pre-schedule check-ins if needed, but make them optional.
Let clients know your availability boundaries.

Pro Insight: Include a one-page summary of your cash flow plan with key metrics in your firm dashboard. This keeps everyone on the same page and makes financial performance part of team culture.

Recap: Your 6-Part Seasonal Cash Flow Strategy

Know Your Average Monthly Revenue
Track and Collect Aged Invoices
Prioritize High-Profit Case Types
Map Seasonal Revenue Trends
Build a Cash Reserve
Communicate the Plan Firm-Wide

When you follow this playbook, you're not just managing money. You're building momentum, control, and freedom.

Because the ultimate flex for a law firm owner isn’t just revenue. It’s freedom.

Try This Today: Open your financial software, pull your last 12 months of revenue, and calculate your average. Then look at your lowest revenue month. Does your cash reserve cover it?

Need Help Creating Your Seasonal Cash Flow Plan?

Our team specializes in building financial dashboards and forecasting tools for law firms.

At TLTurner Group, we help law firm owners build financial systems that drive smarter decisions, empowered teams, and long-term freedom. From bookkeeping and cash flow to dashboards and hiring triggers—we make finance the foundation for a self-led, solution-oriented firm.

Whether you’re not sure where to start or want a second pair of eyes on your numbers—we’re here to help.

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📩 Email: contact@tlturnergroup.com🌐 Website: tlturnergroup.com

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