Make Revenue Flow Projections – It is important to prepare exact cash flow projections for at least 2 years, taking into account both your existing clients as well as prospective clients. Be conservative while putting down the numbers for the prospects. This projection will keep you on your toes and identify the focus areas and months where you need to concentrate, as well as allow you to assess your progress based on pre-set numbers.

Improve your Revenue Inflows – In the practice of law, it is a perception that the longer a lawyer draws out a matter, the more he earns. In practice, it is very important to realize when you need to speed up matters to free yourself for other billable work and ensure inflows. The more organized you are in sticking to timelines, the happier your clients are and the more predictable are your cash flows.

Delay Your Revenue Outflows – While every individual deals with outflows differently and every accountant advises differently too, it is often a good way of stabilizing your cash flows by taking full advantage of the creditors’ payment terms and not making payments before the due date. One trick is to make provisions for the payments, while allowing yourself the additional liquidity till the time the payment has to be made.

Spend Within Your Means – Always monitor and control your expenses to the best of your abilities. Being frugal to an extent is a necessity when you are trying to control your cash flows. Try to reduce expenses on utility bills, office stationery and even storage costs. Careful spending not only allows you to make higher profits but also helps you to maintain funds for the growth of the firm. Controlled and necessary frugality is not a sign to the world that you are not doing well; on the contrary, it displays prudence.

A controlled cash flow is the key to the success of any business and thus for any law firm, so make sure to manage it effectively so that a lack of flow isn’t a threat to your firm.