Why Law Firms Need Better Forecasting (and How to Build One That Actually Works)
- Terrell A Turner
- Sep 19
- 3 min read
Running a law firm is tough enough without having to decode spreadsheets, cash flow projections, or Wall Street jargon. Yet, financial forecasting might be the single biggest difference between a firm that scales smoothly and one that burns out its partners.
On the Modern CPA Success Show, Terrell Turner, CPA, shared how he helps law firms build practical forecasts that owners can actually understand and use. His insights cut through the noise and get right to the heart of what busy firm leaders need: clarity, control, and confidence in their numbers.
The Problem: Law Firms Struggle to Translate Numbers Into Decisions
Most attorneys didn’t go to law school to become accountants. Still, they find themselves buried in financial jargon like accruals, sunk costs, and utilization rates.
The result?
Goals that don’t match reality (e.g., “Let’s be a $5M firm next year” without knowing what it takes to get there).
Billing practices that choke cash flow.
Surprise revenue swings that could have been predicted with better tracking.
Terrell’s point is simple: if even Wall Street analysts struggle to interpret accounting models, how can we expect law firm owners to “just get it” without translation?
The Solution: Translate Finance Into Language Lawyers Understand
Instead of drowning clients in accounting jargon, Terrell re-frames the numbers into real, relatable metrics:
Cases, not cash flow: Instead of saying, “You need $200,000 in revenue next quarter,” he says, “You need 15 new custody cases or 8 contested divorces.”
Capacity, not headcount: Instead of vague staffing goals, he shows exactly how many paralegals and attorneys it takes to support that caseload.
Timing, not totals: By calculating how long a case takes to convert to cash, firms can see when revenue will actually hit the bank, not just when it’s billed.
This translation helps law firm owners connect the dots between legal work and financial outcomes.
Why Forecasting Matters for Growth
A clear financial forecast helps law firms:
Sanity-check growth goals. Saying you want to scale from $2M to $5M is easy, but are you willing to hire 10 more staff and manage that overhead?
Prepare for cash crunches. Growth eats cash before it produces it. Forecasting prevents surprises when expansion ties up working capital.
Stay resilient through change. Losing a partner, adding a new office, or shifting from hourly billing to flat fees can all be modeled before decisions are made.
As Terrell says:
“Money is emotional. Without a clear roadmap, your emotions run wild. A forecast keeps your decisions grounded.”
Networking and Growth Lessons From Starting in 2020
Forecasting isn’t the only piece of the puzzle. Terrell shared how launching TLTurner Group in April 2020 forced him to rethink networking and client acquisition.
Instead of chasing random lunches and cold introductions, he:
Launched a podcast to interview business owners and learn their pain points.
Commented strategically on LinkedIn posts to spark conversations.
Turned FAQs into short video content to meet prospects where they were asking questions.
This approach built trust, visibility, and eventually clients. For law firms, the takeaway is the same: consistent, valuable content builds authority faster than chasing leads one at a time.
Tools and Best Practices for Law Firm Forecasting
While many firms still lean on spreadsheets, Terrell emphasizes a few best practices:
Build driver-based models. Focus on inputs (cases, bill rates, staff capacity) that actually move results.
Create scenarios. Best case, worst case, and most likely, so you’re never caught off guard.
Make it collaborative. Let partners tweak assumptions in real-time so they buy into the forecast.
Keep it simple. If the managing partner can’t read it at a glance, it’s too complex.
Key Takeaways for Law Firm Owners
Translate your finances into cases, clients, and timelines. Don’t settle for reports you can’t use.
Forecast growth before chasing it. A bigger firm isn’t always a better firm. Align goals with lifestyle and capacity.
Fix your billing practices. If cash isn’t collected, “billable revenue” is meaningless.
Stay patient and consistent. Whether it’s networking, building systems, or hitting financial goals, the long game wins.
Finance Tip of the Week
You can’t eat AR. Billable hours and uncollected invoices look good on paper, but only cash pays salaries and funds growth. Prioritize collections with the same urgency you apply to client work.
Forecasting Isn't About Numbers ...
It’s about giving you a clearer path to the firm you actually want to build. With the right tools and the right translation, you can align your cases, cash, and capacity to your vision.
Want help building a forecast your whole team can understand?
Download your free Revenue Calculator and map your next growth move with clarity.
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