Just like any company, a law firm operates as a business as well. This implies that law firms also need a complete and streamlined organizational structure, including a finance team. As your firm gets bigger, it will need a financial plan to support its growth. Here’s a list of scenarios when you need to include a financial plan for your law firm.
- When you want to expand
If you want growth for your law firm, you will need to expand. However, a massive expansion entails a large amount of money to support it. But at the same time, you will still want to make sure that your firm will be profitable despite capital expenditures. A financial plan will do that exactly and help keep expenses at bay.
A financial planner law firms could consider is Capstone, especially if the firm is thinking of expanding. Capstone Financial Planning provides has a network of financial advisers backed up by extensive planning and tailored service to support the law firm’s financial plan.
- When you plan to increase marketing efforts
Again, just like any business, a law firm also has to have proper, innovative marketing strategies in order to make a mark in the industry and keep up with the times as well. A well-defined marketing strategy will include online presence (website and social media), a production team for content creation, and corporate social responsibility efforts.
In order to seamlessly execute these promotional strategies, the law firm will definitely need a hefty budget to begin with. This is where a financial plan also comes in. Having a financial plan sculpted by professional advisers can help you plan out your marketing strategies and efforts in alignment with your financial capabilities.
- When you want to realign your vision and direction
At times, all it takes to realign a firm and set it on the right path once again is to have proper financial planning. To be able to manage your firm’s future affairs, you need to have a systematic review and monitoring of your finances. When crafting a financial plan, you’ll be given a chance to review current performance and evaluate steps for attaining new goals.
A financial plan can monitor the firm’s activities and establish projections for the future to better guide your law firm’s steps and actions. This way, the law firm will know what steps to take and how to redirect the law firm towards its goals with its current financial capabilities.
- When you want to do asset allocation
If you want to diversify your financial positions, you might want to take on financial planning for your law firm. A financial plan can allocate your assets properly and put them in respective investments so that your money continues to grow even while you’re working or sleeping.
A financial plan will contain strategies where you can invest in liquid securities, stocks, bonds, and real estate. The type of investment you choose will depend on the long-term goal of the firm, which you and the financial adviser will discuss. A financial plan will define your liquidity and construct your targeted returns by building a bespoke asset allocation plan for your firm. This way, your firm will be prepared for any kind of economic condition ahead as well.
- When you want to have security and peace
Having to worry about the financials of your law firm on top of the pressure and difficulty of cases can be troublesome. To balance it out, you might want to consider getting a financial plan to ease out stress.
Financial plans will not only provide clear budgeting, steady cash flows, or financial statements, but also offer some proactive tax planning, guidance on tax compliance, and proper tax return preparation. Part of the financial plan is also insurance and estate planning to protect you from future problems. Financial plans will also give you financial security and peace of mind as your law firm operates on a daily basis.
While giving you financial security, a financial plan will help you leverage on the firm’s retirement plan as well. All these services will not only save you some time and give you security, but it will also save you some money.
Conclusion
Having a financial plan for your law firm will provide many benefits that will aid in the growth of the firm while providing you with financial security. It is therefore essential to consider putting up a financial plan for your law firm given the advantages it will manifest.
