To run your new firm as a business, at the outset you should develop a budget for your first year and then plan to review and revise that budget on an annual basis. Considerations when developing your budget include your fee structure, expenses, and projected revenue. That means you’ll need a solid financial management system to collect and measure your¬†profitability. You should know what you have to bill and collect every month to cover your firm’s expenses.

It is also wise to set up an operating account for your business separate from your own personal account. This will avoid commingling funds for liability purposes as well as help you keep track of your business finances. Depending upon your legal entity and bank, you may need an employer identification number to open a business account. Apply online for an EIN, here.

SECTION CONTENTS

Start-Up Costs & Budgeting

Fee Structure

Billing and Collections

IOLTA

RESOURCES

Financial Management Software

Managing the Finances of Your Practice (PracticePRO)