Mastering the Money Side of Your Law Firm (Without Becoming a CFO)

TLTurner Group
Apr 17
4 min read

Let’s be real:

You didn’t go to law school to become an accountant. But if you're running your own law firm, understanding the money side of your business is non-negotiable.

And yet, many firm owners ask:

“How do I master the financial side of my law firm?”

Here’s the truth: You don’t need to master it all—you just need to feel confident and in control.

This blog post will walk you through:

The key components of law firm financial health
A tool that gives you an instant health score
Actionable ways to improve without the overwhelm

Mastery vs. Comfort: What Do You Actually Want?

Before you dive into financial strategy, ask yourself:

Do you really want to master law firm finances… or just feel more confident and less stressed about them?

Mastery takes time, just like it did with law. But building comfort and clarity with your numbers? That can start today.

Your First Step: Know Your Firm’s Financial Health Score

To help law firms gain financial clarity without drowning in spreadsheets, we created the Financial Health Score Calculator.

This simple tool gives your firm a score—Average, Good, or Excellent—based on eight key financial factors. You just enter your data, and it calculates your score and offers custom recommendations.

Let’s break down the 8 elements that make up your score—and why each one matters.

1. Revenue Distribution: Who’s Really Earning?

Too many firms rely solely on partners to generate revenue. That’s risky.

If you (or another partner) step back, get sick, or take a vacation, the firm’s income may drop dramatically.

Goal: Gradually shift more revenue generation to staff, associates, or systems—not just the partners.

2. Mandatory Expenses: What’s Non-Negotiable?

These are the costs required to deliver legal services:

Legal staff salaries
Client-facing software
Payment processing fees

Tip: Calculate what percentage of revenue goes to mandatory costs. If it's too high (e.g. 80%+), your profit potential is at risk.

3. Nice-to-Have Expenses: The Extras Add Up

Not all expenses are essential. Think:

Premium tools.
Office snacks.
Subscriptions you don’t use.

Action Step: Audit these monthly and ask, “Does this help us serve clients better or grow profitably?”

4. Cash Flow Timing: When Money Comes In

Here’s what trips up many firms: You’re spending money before you collect from clients.

Ask:

What % of revenue is collected before the 15th of the month?
Can you invoice earlier or ask for upfront payments?

5. Cash Flow Timing: When Money Goes Out

The flip side of the cash conversation—when are you paying your bills?

Common issue: Paying payroll, rent, and credit cards in the same week. Result? Bank account nosedive.

Quick Fix: Stagger major expenses throughout the month to stabilize your cash flow.

6. Cash on Hand: Your Financial Cushion

This tells you how long your firm could survive if revenue stopped tomorrow.

Formula: Cash on hand ÷ Weekly expenses = Weeks of survival

Goal: At least 4–6 weeks of operating expenses in the bank.

7. Collections: Are You Actually Getting Paid?

Uncollected billables are silent killers. You’ve done the work—but the money hasn’t come in.

Tip:

Use follow-up emails or collection services.
Assign someone to own the follow-up process.

Even a small bump in collections can make a big difference in cash flow.

8. Team Production: Stop Doing It All Yourself

Too often, clients think you (the partner) will personally handle their entire case.

Shift the mindset by:

Introducing team members early in the client journey.
Assigning more work to associates and paralegals.
Building systems that don’t rely solely on the partner.

This gives you time to actually work on your firm, not just in it.

Try the Financial Health Score Calculator

We built this tool to help law firm owners like you get out of overwhelm and into control.

Plug in your numbers .
Get your score .
Receive tailored recommendations.
Track progress monthly.

Want to try it? Click here to access the calculator.

Get Calculator

Final Thoughts: You Don’t Have to Be a Master—Just Get Started

Getting your firm’s finances in shape doesn’t require a finance degree. You just need:

A clear understanding of your financial health.
A few strategic changes to improve cash flow and profit.
A system to track what matters most.

Let the Financial Health Score Calculator be your guide.

Ready to feel confident about your firm’s finances? Click below to get the Financial Health Score Calculator.

Get Calculator

Or, book a call with our team to explore how we can help you set up custom dashboards, track key numbers, and grow profitably—without the overwhelm.

Book a Call

Need more help managing Law Firm finances?

If you're looking for a partner who understands the unique demands of your practice and can help you grow with clarity and confidence, we’d love to support you.

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