Financial Modelling Tool for Lawyers
As a lawyer or owner of a law firm, understanding how your cash flow fluctuates throughout the year and knowing when to make strategic financial decisions is essential. Brixx provides the financial tools you need to gain valuable insights, helping you plan for growth, manage expenses, and optimise your firm’s profitability.
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Model your law firm business in Brixx - see how quickly your finances can make sense!
We are working on creating this template in Brixx. Although it isn’t available just yet, you can follow the guidance below to help get started. If you need any further assistance, don’t hesitate to get in touch – we’re here to help!
Project Setup
- Project name: Law Firm Financial Model
- Time period: Monthly (ideal for tracking billable hours, retainers, and expenses)
Income Components
- Component: Legal Services Revenue
- Sub-components:
- Hourly Billing – 80 billable hours per lawyer at £250/hour – £20,000/month per lawyer
- Retainer Fees – 5 corporate clients at £2,000/month – £10,000/month
- Fixed-Fee Services – Drafting contracts, wills, etc. (10 per month at £500 each) – £5,000/month
- Contingency Fees – Litigation cases (win-based, estimated at £20,000 per year)
- Sub-components:
- Component: Additional Income
- Sub-components:
- Referral Fees – £1,500/month from external case referrals
- Expert Witness Services – £2,000/month (if applicable)
- Legal Document Automation – Subscription service for clients (£1,000/month)
- Sub-components:
Expenditure Components
- Component: Operational Costs
- Sub-components:
- Office Rent – £3,000/month (based on location and office size)
- Salaries & Wages –
- Senior Lawyer (Owner): £8,000/month
- Associate Lawyers (2): £5,000/month each
- Paralegal (1): £2,500/month
- Admin Staff (1): £2,000/month
- Insurance (Professional Indemnity) – £500/month
- Software & Tools – Legal case management software (£200/month)
- Marketing & Advertising – £1,000/month (Google Ads, networking events, etc.)
- Sub-components:
- Component: Administrative Costs
- Sub-components:
- Bar Membership Fees – £250/year per lawyer
- Legal Research Subscriptions – £500/month
- IT & Security – £150/month
- Stationery & Office Supplies – £100/month
- Sub-components:
Asset Components
- Component: Fixed Assets
- Sub-components:
- Office Leasehold Improvements – £10,000 (furnishings, IT setup, etc.)
- Computers & IT Equipment – £1,500 per lawyer (depreciated over 3 years)
- Law Library (Books & Digital Resources) – £5,000 upfront
- Sub-components:
- Component: Current Assets
- Sub-components:
- Cash Reserves – £30,000 starting balance
- Accounts Receivable – Outstanding client invoices (£20,000 at any time)
- Client Retainer Deposits – £15,000 held in trust (model as liability if needed)
- Sub-components:
Funding Components
- Component: Business Loans
- Sub-components:
- Startup Loan – £50,000 at 5% interest, 5-year term
- Equipment Financing – £10,000 at 3.5% interest for IT purchases
- Sub-components:
- Component: Personal Investment
- Sub-components:
- Initial Capital Contribution – £30,000 by firm partners
- Sub-components:
- Component: Future Funding (Optional)
- Sub-components:
- Line of Credit – £20,000 pre-approved overdraft for cash flow fluctuations
- Sub-components:
Scenario Planning in Brixx
- Billable Hours Variability
- Model scenarios with 60%, 80%, and 100% billable capacity.
- Hiring Growth
- Add a new associate and predict the revenue impact.
- Market Downturn
- Reduce corporate client retainers by 30% to test resilience.
- Unexpected Legal Dispute
- A lawsuit or compliance fine of £10,000 in a given month.
Dashboard & Reporting
- Cash Flow Report
- Tracks invoices paid vs. outstanding, showing real-time revenue flow.
- Balance Sheet
- Displays assets (cash, computers, client deposits) against liabilities (loans, rent).
- Profit & Loss Statement
- Shows revenue streams, operational costs, and net profit per quarter.
- Custom KPIs
- Utilisation Rate – % of billable vs. total hours per lawyer.
- Average Revenue per Lawyer – Total income / number of legal professionals.
- Client Retention Rate – % of returning vs. one-time clients.
Who can use this Brixx template?
- Law firms of all sizes
- Independent lawyers and legal consultants
- Legal finance managers and accountants
Brixx is a great tool for:
- Anyone managing the financial planning and budgeting for a law firm
- Lawyers, firm partners, or accountants overseeing revenue, expenses, and profitability
- Legal professionals looking to forecast growth, staffing costs, and operational expenses
What are the benefits for law firms and lawyers?
- The template is tailored to the legal industry, covering all aspects of financial planning for law firms
- Effortlessly model cash flows, billable hours, case revenue, and overhead costs
- Easily interpret results and graphs to assess profitability and business growth
- Quickly evaluate the impact of new income streams, such as retainers, consultation fees, or expanded legal services
- Receive immediate feedback when modelling different scenarios like fee structure adjustments, hiring new staff, or investing in legal technology
Strategic forecasting in Brixx
- Calculating the profitability impact of different billing rates and client acquisition strategies
- Demonstrating projected earnings and financial stability to support business loans or expansion plans
- Forecasting and budgeting for salaries, office expenses, and professional development costs
- Anticipating financial requirements for hiring additional lawyers or expanding legal services
- Evaluating the impact of market changes on client demand, legal fees, and operational expenses
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"It was a really nice exercise to see with my own eyes how money flows in and out of the business in Brixx."
Ainhoa, Yoga with AinhoaGet started with the best financial projection software - today!
Financial modelling software is essential for law firms and legal professionals, providing the insights needed to plan and manage finances effectively. By forecasting costs, firms can gain a clearer picture of their financial landscape, from salaries and office expenses to case-related costs. Additionally, forecasting potential revenue from billable hours, retainers, and new client acquisition enables informed decisions on staffing, expansion, and resource allocation.
The ability to identify market trends, adjust fee structures, and plan for fluctuations in workload further strengthens a firm’s long-term success. With over 20 years of business modelling experience, Brixx is a trusted solution, offering powerful tools to help law firms confidently navigate financial planning.
Investing in expert financial modelling software like Brixx empowers you to optimise cash flow, plan for growth, and strategically forecast the future of your legal practice. Get started for free today.