In part two of our series, “Are You Ready to Start a Law Firm” we continue to ask the important questions to assess the readiness of aspiring attorneys/entrepreneurs. Here are some additional considerations from Firm Numbers, a bookkeeping service that has boots on the ground, helping the owners of small law firms be the boss, not the bookkeeper.

Are you an attorney wrestling with the thought of going solo? Starting a business is not just about tolerating risk and “taking the leap”. In Part One of our series: Am I Ready to Start a Law Firm”, we offer more specific questions to assess your readiness to be an entrepreneur.

Business consultants and coaches commonly advise small business owners to use a “trailing 12-month” statement of profit and loss (P&L) to get more value from their financial data which requires some extra effort, usually on the part of a bookkeeper or accountant, to design and populate. The question these business owners commonly ask: is the extra effort worth it?

In business and in life, we can all benefit from paying more attention to where we spend our money. However, tracking business expenses is about more than just saving receipts. There is one basic concept many business owners can be slow to accept when it comes to managing their finances.

The effort spent entering billing can produce valuable insight into the amount and type of revenue one earns. However, to generate practical, useful data, business owners need to consider the critical final step to this process.

Not too many business owners give a lot of thought to the construction of their Chart of Accounts. It can be a missed opportunity for those who want to quickly access critical information about their business.