Do not even think about running a business without a budget. If you do not plan for financial success you should work for someone else that does or hire a CFO. From day one at the firm I had a budget. You need to know what you expect to make, where you plan to spend money and what your profits are going to be. As you grow you’ll need more sophisticated modeling and to learn about ratios and percents to help you be strategic with your decisions and understand how your cash flow will be impacted. When I went to Dartmouth’s Tuck CEO school back in 2016 I was pleasantly surprised when I found I could have taught the finance portion of the course. Knowing finance is key to leading a successful business. If you are a lawyer and plan to be a partner or work with business clients I highly recommend you learn business finance basics or your opinion will not be as valued in making business decisions because you don’t know the fundamentals.
We operate with real time accounting and I regularly monitor my financial reports. It’s my role as the CEO. If I’m going to look at where we are to make decisions about the future I need reliable data at my fingertips to make solid decisions. Month old information would not allow me to be as bold and confident in my business judgement. I know what data to pull and how to direct my administrative team on firm finance. If I plan to open a new office I run forecasts and budget accordingly. If I want to pay bonuses or make a large capital expenditure I evaluate the future impact.
Contact our Sioux City, Sioux Falls, or Omaha law firm today to help you ramp up the financial success of your business.