Law Firm Financial Planning: 3 Numbers to Track Now That Tax Season Is Over

TLTurner Group Marketing
May 6
3 min read

Tax season is finally behind you—but that doesn’t mean your work is done. If you're like most law firm owners, tax time reveals more than just how much you owe. It often exposes a deeper issue: a lack of regular financial planning.

Whether you were surprised by your tax bill or unsure about your firm’s profitability, now is the time to get proactive about your finances.

Stop Waiting for Tax Season to Understand Your Finances

Every year, too many firms make a mad dash to gather their numbers for the CPA. But that reactive approach can cost you—in taxes, cash flow, and clarity.

Instead of scrambling once a year, smart law firm owners are shifting to monthly financial reviews.

Why Monthly Bookkeeping Matters More Than You Think

If you don’t have a process in place to review your financials every month, you’re flying blind. You need to know:

Are we profitable?
What was our revenue this month?
What are our expenses—and can we cut any?

💡 Pro Tip: Work with a bookkeeper who understands the legal industry. They’ll help you focus on the key metrics that matter, not overwhelm you with data you don’t need.

1. Track Revenue vs. Legal Work Performed

Here’s where many law firms go wrong: they confuse revenue collected with work performed.

Ask yourself:

How much money did we collect this month?
How much legal work did we actually complete?

Those numbers aren’t always the same. In fact, you might be shocked by how many invoices remain unpaid.

Real Example: One firm had over $900,000 in unpaid invoices—and didn’t even know it until they pulled the report.

Action Step:

Run a monthly unpaid invoice report from your law practice management system. Review it with your team and start building a plan for collections.

2. Measure Legal Staff Efficiency Using the Rule of 3

Not sure if your team is pulling their weight? Try this simple test:

💡 Take your total legal staff cost and multiply it by 3. That’s how much revenue your firm should be bringing in.

If your revenue is less than 3x your legal payroll, you may be:

Underutilizing your team
Overstaffed
Working on low-value cases

It’s not always about working harder—it’s about working smarter and billing better.

3. Analyze Your Marketing ROI the Right Way

Let’s say you spent $10,000 on marketing this month. Here’s what you should track:

How many leads did it generate?
How many turned into consultations?
How many became paying clients?

Then estimate the total value of those new clients.

Rule of Thumb:

Your marketing should return at least 10x what you spent.

If it’s not, you may need to:

Refine your targeting
Optimize your intake process
Shift your marketing channels

When to Work with a Bookkeeper or Fractional CFO

If your current bookkeeper isn’t helping you understand your numbers—or you’re still confused after monthly reviews—it might be time to level up to a CFO (even on a part-time basis).

A good fractional CFO will help you:

Interpret your financial reports
Spot patterns and gaps
Build accurate forecasts
Make data-driven decisions for the future

Final Takeaway: Don’t Wait—Start Tracking These 3 Numbers Today

Here’s your monthly financial planning checklist:

Revenue vs. Work Performed → Are you collecting for all your legal work?
Legal Staff Cost x 3 → Is your team producing enough to support the firm?
Marketing ROI → Are your campaigns bringing in the right clients and enough revenue?

Master these, and you’ll move from financial guesswork to confident, strategic leadership.

Want Help Getting Started?

At TLTurner Group, we help law firms take control of their numbers with simple, strategic financial planning. From bookkeeping to fractional CFO services, we speak your language—and we understand your business.

Book a Call

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