An esteemed attorney began his legal practice in 2018 with the goal of using his law degree and prior experience to continue to serve his existing and new clients while also providing for his family. As his practice rapidly expanded, the demands of running a growing business led him to increasingly make decisions that extended beyond the realm of law. He quickly found himself venturing into the domain of business management. With a desire to gain a comprehensive understanding of his firm’s financial health and ensure its continued growth and financial success, he found himself grappling with conflicting priorities.
A Need For Clarity and Peace of Mind
In 2022, the law firm earned $1.2 million in revenue with a goal of reaching $1.4 million during 2023. This revenue growth goal would require careful planning and financial management, especially since the firm owner wanted to expand his firm by hiring a new attorney and paralegal. Most importantly, he knew he needed peace of mind knowing that the firm’s financial stability would not be compromised by the new hires.
Expert Guidance for Financial Success
In an effort to gain clarity about his priorities, strategically plan for the growth of his firm, and ensure the successful achievement of his revenue target, the attorney decided to seek fractional CFO advisory services through Aligned CPA. The advisory services included the following:
Goal Setting
At the beginning of the year, the attorney worked with Aligned CPA to set clear, measurable goals for his practice. Together, we examined past performance and new priorities in order to establish one-year goals. One of these goals was to hire a new attorney to expand his firm’s capacity and clientele.
Cash Flow Projections
Aligned CPA used financial modeling to project how hiring a new attorney and paralegal would impact the firm’s cash flows. We considered expenses related to salaries, benefits, and overhead costs while factoring in expected revenue growth. We also presented different scenarios, including conservative and optimistic projections, giving the attorney a comprehensive view of the potential outcomes.
Revenue Growth Strategies
Together, the firm owner and Aligned CPA developed strategies to boost revenue, including marketing initiatives and client acquisition plans. Additionally, they implemented activity-based key performance indicators (KPIs) to gauge and oversee progress, promoting accountability among the firm’s employees for their respective marketing objectives.
Quarterly Meetings
The advisory services provided regular progress reports to the attorney, allowing him to track his firm’s performance against established goals. He would also meet with our director of advisory, Cessie, on a quarterly basis. They discussed this progress, along with any changes, setbacks, or new priorities. Cessie helped him understand him firms financial status through regular coaching. This real-time feedback was invaluable in making timely adjustments to ensure goal attainment.
Exceeding His Expectations
By the end of 2023, the law firm will not only meet their goals, but the revenue goal will be exceeded. A new attorney and paralegal have been hired. Marketing goals are being met, and finally, the law firm is set to make approximately $1.7 million in revenue; $300,000 over the initial goal!
Final Thoughts
Fractional CFO services provide targeted financial expertise, which may include long-term financial strategy and advice on specific projects or areas, offering flexibility and cost-effectiveness.
Your Success Becomes Our Priority
Through the Fractional CFO services at Aligned CPA, we help you grow your business as your strategic partner.
Making empowered business decisions on accurate financial data can start today.
Cessie Cothran, MBA
Combining the CFO Advisory with tax strategy creates the best opportunity for financial success. We like to call it being perfectly Aligned. Our clients know they have us as a partner, helping them to feel secure about their financial future.