Watch the YouTube version of this episode HERE
Are you a law firm owner who needs support with financial management? In this episode of the Maximum Lawyer Podcast, Tyson interviews Jessica Gonifas, an expert in implementing the Profit First system for law firms. Jessica explains how Profit First helps law firm owners prioritize profit, improve cash flow, and gain financial clarity by allocating income into dedicated accounts.
Jessica shares what a profit first system is for law firms and why it is important to have. The system is about structuring your firm to focus on profit and uses the formula of sales - profit = expenses. It also includes cash management and how to allocate your cash based on what priorities you deem necessary. Jessica helps firms look at their priorities once a quarter to know what areas of the business needs to be focused on, thus allocating cash to that area in order to help with growth.
Profit First also helps law firms understand their approach to money. Many lawyers don’t really know how to manage money because their focus is on law and helping clients. Shifting from a lawyer to a law firm owner involves understanding money and how it needs to be distributed or handled within a firm. Jessica emphasizes the need for law firms to figure out their goals, especially their financial goals and utilize Profit First make the process easier.
Listen in to learn more!
- 00:29 Core Principles of Profit First
- 03:31 Strategic Financial Planning
- 05:44 Managing Personal and Firm Finances
- 13:35 Streamlining and Optimizing Finances
- 25:00 Key Metrics to Track
- 31:19 Financial Red Flags
Tune in to today’s episode and checkout the full show notes here.
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