On this episode, host Sasha Berson, Chief Growth Officer at Grow Law Firm, welcomes Ryan Kimler, Owner of Net Profit CFO, to discuss:
- The difference between bookkeepers, accountants and CFOs.
- Why hiring a CFO is a good idea even for law firms with less than $2 million in revenue per year.
“66% of lawyers are either self-employed or working in law firms with less than 10 employees. A vast majority do not know the numbers very well.” - Sasha Berson
- The three ways in which Ryan helps improve the profitability of a law firm; the first is to evaluate the billing and the ROI per attorney.
- Why it’s important to bill four to five times more than you’re paying an associate.
- Why total payroll expenses divided by revenue should be at around 40%.
- Why it’s a good idea to have four to six months’ worth of expenses in the bank.
- How to optimize profitability per attorney to get a minimum return of four or five times their true cost: this may mean adjusting their price point or wages.
“To grow revenue and profit, you must evaluate how attorneys are billing and the ROI per attorney.” - Ryan Kimler
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