Why Law Firm Revenue & Cash Flow Forecasting Is a Nightmare (and How to Solve It) with Sean Mooney

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Mar 11, 2025

Sean Mooney, a senior financial consultant and founder of SJ Finance, dives into the intricate world of revenue forecasting for law firms. With his expertise in Excel automation, he reveals the challenges firms face, particularly with long cash cycles and the need for precise Work In Progress (WIP) reporting. Sean shares insights on the importance of scenario planning in financial models and the significant role of Power Query in streamlining data management. He emphasizes that accuracy is crucial, as stagnant WIP can lead to financial pitfalls, offering a fresh perspective on overcoming these hurdles.

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ANECDOTE

Worst Model Ever

Sean Mooney recounts building a "frankenstein" model early in his career at a law firm.
Multiple people contributed, creating a messy, incomprehensible model, a learning experience for him.

INSIGHT

From Accounting to Modeling

Sean Mooney transitioned from accounting to financial modeling after realizing he enjoyed using models to inform business strategy.
His model became his "right-hand man," answering questions and guiding board presentations.

ADVICE

Client Objectives

When building a financial model, understand the client's end goal, not just their immediate need.
Explore alternative solutions like debt financing instead of immediately pursuing equity investments.

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In this episode of Financial Modeler’s Corner, host Paul Barnhurst (aka The FP&A Guy) welcomes Sean Mooney, a senior financial consultant specializing in automated financial modeling for professional services. Sean shares his journey from accounting to financial modeling, the challenges of revenue forecasting for law firms, and the power of Excel automation.

Sean Mooney is the founder of SJ Finance, a consultancy specializing in financial modeling automation for professional services firms. With 12+ years of executive finance experience in the UK and Australia, Sean has built financial models that have helped businesses secure millions in funding. He is an expert in Power Query, Excel automation, and M&A financial modeling, helping companies save up to 75% of reporting time through smart automation.

Expect to Learn:

How Sean transitioned from accounting to financial modeling
The role of Power Query in automating financial modeling processes
Key revenue forecasting challenges in law firms and service businesses
Why scenario planning is critical for financial models
How financial modeling influences business strategy and decision-making

Here are a few quotes from the episode:

“Law firms have long cash cycles, so tracking work-in-progress (WIP) is absolutely critical.”
“Debt financing can sometimes be a better alternative to private equity, but many business owners don’t realize that.”
“The biggest risk in a financial model? A black hole of stagnant WIP that never turns into revenue.”

In this episode, Sean Mooney shared his expertise on how automation, Power Query, and strong forecasting techniques can transform financial models from static spreadsheets into dynamic decision-making tools. He advises financial modelers to stress-test their models, embrace automation, and always keep learning.

Follow Sean:

LinkedIn - http://www.linkedin.com/in/sean-mooney-sjf
Company - https://sjfinance.co.uk/

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Website - https://www.thefpandaguy.com  
LinkedIn - https://www.linkedin.com/in/thefpandaguy 
YouTube - https://www.youtube.com/@thefpaguy8376

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In today’s episode:

[01:24] Introduction to the Episode

[06:55] Sean’s Passion for Financial Modeling

[09:45] Guiding Clients on Financial Decisions

[15:30] Revenue Forecasting for Law Firms

[24:38] The Potential of Power Query

[30:04] Sean’s Favorite Excel Shortcuts & Tips

[31:39] Excel Nerd Moment

[34:18] Rapid-Fire Questions

[37:53] Final Advice for Financial Modelers