How to Forecast for Law Firms (Without Getting Lost in Spreadsheets)
- Terrell A Turner
- Sep 19
- 3 min read
Most law firm owners don’t wake up excited about forecasting. Between client demands, staff management, and court appearances, the idea of crunching numbers feels like a distraction.
But here’s the truth: a solid financial forecast is the difference between a firm that survives year to year and one that scales with confidence.
So how do you create a forecast that’s actually useful, one that busy partners and associates can understand at a glance?
Let’s break it down.
Step 1: Start With Cases, Not Just Revenue
Lawyers don’t think in terms of revenue lines. They think in cases, clients, and billable hours.
Begin your forecast with these core questions:
How many new cases does your firm expect this quarter?
What’s your average case value for each practice area?
How long does it typically take for a case to turn into collected cash?
Example: If your average family law case is $7,500 and your firm usually handles 20 per quarter, that’s $150,000 in projected revenue. Add in conversion rates (leads → clients), and you’ve got the foundation of your forecast.
Step 2: Map Out Expenses by Capacity
Growth eats cash before it generates it. If you want to scale, you need to know when and how expenses will rise.
Track these categories:
Staffing costs (attorneys, paralegals, admin support)
Marketing & client acquisition (ads, referrals, content)
Overhead (rent, tech, insurance, bar dues)
Tie each expense to capacity needs. If you plan to take 10 more cases per month, do you have the attorneys and staff to handle it? If not, when will you need to hire?
Step 3: Build Scenarios (Best, Worst, Most Likely)
Forecasting isn’t about predicting the future with 100% accuracy. It’s about planning for possibilities.
Best case: You land more high-value cases than expected.
Worst case: A partner leaves and takes clients with them.
Most likely: Steady growth with normal client turnover.
By running scenarios, you won’t be caught off guard when reality shifts.
Step 4: Use the Right Tools
Forget outdated spreadsheets that only one person understands. Today’s tools make forecasting dynamic and collaborative:
Driver-based spreadsheets (simple, customizable).
Law firm CRMs (Clio, PracticePanther) with built-in reporting.
Accounting + forecasting apps (Fathom, Jirav, Spotlight Reporting).
Pro tip: Start simple. If your partners can’t read the forecast in under 5 minutes, it’s too complicated.
Step 5: Review and Adjust Regularly
A forecast isn’t a “set it and forget it” tool. It should evolve with your firm.
Monthly: Review collections vs. forecasted revenue.
Quarterly: Adjust staffing, marketing spend, and case assumptions.
Annually: Reset long-term goals and capacity needs.
Consistency matters more than perfection. The firms that win are those that track, tweak, and repeat.
Why Forecasting Matters for Law Firms
When you take time to forecast, you gain:
Clarity on whether growth goals are realistic.
Control over cash flow so you’re never blindsided by payroll.
Confidence to make big moves (like hiring, expansion, or shifting to flat fees.)
Or, as Terrell Turner, CPA, often says:
“You can’t eat billable hours. If you’re not forecasting cash, you’re running on hope and hope isn’t a strategy.”
Finance Tip of the Week
Tie your forecast to cases, not just dollars. Revenue projections mean little if you can’t connect them to real-world caseloads and staffing capacity.
Forecasting Isn't About Being and Accountant ...
It’s about building the law firm you want with eyes wide open. By starting with cases, mapping expenses, and running scenarios, you’ll create a forecast that guides smarter decisions every quarter.
Ready to simplify forecasting for your firm?
Download your free Revenue Calculator and start turning cases into clarity today.
Comments