When you become the CEO of your law firm and begin a financial overhaul, having a financial professional in your life can help you so much!
Finding the right CPA for your taxes is a must-have right from the start. As you grow your firm, a chief financial officer and a financial planner can be really life-changing as well, especially when it comes to guarding your cash flow and building your wealth. Together, your money team can lead you to financial success.
Your Chief Financial Officer (CFO)
You might be thinking, “My firm’s not big enough to need a CFO!” That’s not true. Your firm doesn’t have to be “big” to need a CFO. A CFO helps you get your firm’s money under control. And what’s great is that CFO services are now offered on demand!
A CFO will look at your cash flow, how you are making your money, and your P&L’s to see where your money flows in and out. They will help you evaluate places where you could be doing better, where you can maximize your earnings and where you can minimize your spending. You’ll find any unnecessary money leaks and be able to stop it before it has any negative long term effects on your firm.
Your CFO will also help you put into place the essential metrics to track growth. If you need help with money management, something that can be very challenging, a CFO can help. I recently hired a CFO from the company Now CFO. I also researched and interviewed several companies such as Paro.io and AVL Growth. As I said earlier, these CFOs are “on demand,” so they aren’t a full-time staff member. This gives you access to excellent advice when you need it, at a fraction of the cost.
I really enjoyed meeting and talking with CFOs from each of these companies, and learning how they could help my business. I ended up finding a CFO who had worked with some of the largest and most well-known law firms in the US, so he understands service-based businesses and law firms.
He has given me a ton of insight that has helped me understand my business better. A lot of it was because of the tracking and metrics we had in place already. But his perspective has helped me think of things that I hadn’t thought of before and put other things in place for future growth and goals.
Your financial planner
Hiring a personal financial planner can be an amazing, life-changing step.
For me, having a personal financial planner was a huge part of getting more purposeful with my finances and spending. A good financial planner can help you protect what you’ve done so far and build wealth for both now and the future.
That being said, it took a bit of work to find the right financial planner. I interviewed several people before finding the right fit for me.
It helps to have some basic knowledge before going into the meetings. So for example, everything I read said to never opt for full life insurance. So when a financial planner advised that, I knew he wasn’t right for me. I knew that I valued paying off debt and not carrying a mortgage for the tax write off, so when I met with a financial planner who recommended not paying off my mortgage, I knew that he wasn’t the right fit either.
I love Suze Orman’s books because they are so basic and to the point. If you read one of her books and then look for a financial planner, you’ll be on a great path forward.
Your money team is essential
I know that all of this sounds like it’s work because you have to do research and schedule interviews, and you’re right, it is work. But you are assembling your team. You are finding people who can help you keep your money, make more money, and protect your money.
You need to have your money team at the top of its game.
In summary, for your money team, I recommend that you have:
- Bench for bookkeeping
- CPA (that actually returns emails)
- CFO (on demand, not full time)
- Financial Advisor / Financial Planner
These people can keep the pulse on your business and help you stay informed and on top of your finances!
If you can believe it, I have even more knowledge to share on this topic! If you’d like to learn more about finding the right money team, sign up for my Six Figure Solo program! Six Figure Solo now comes in three tiers – Executive, Solopreneur, and CEO. Sign up here!