What’s New in Legal Financial Management? An Expert’s Perspective

Oct 30, 2024

Peggy Gruenke, founder of CPN Legal, specializes in financial management for small law firms. She discusses the latest in automated accounting tools while emphasizing the enduring value of professional bookkeeping. Gruenke offers insights on achieving financial discipline and operational efficiency, urging lawyers to treat their practices with respect. She highlights the importance of using software solutions like Clio and QuickBooks and shares tips on managing expenses, improving profitability, and maintaining financial vigilance to prevent mismanagement.

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ADVICE

Importance of a Law Firm Bookkeeper

Lawyers should focus on legal work, not bookkeeping; hire a qualified bookkeeper.
Ensure the bookkeeper understands law firm accounting, especially trust accounting, and reconciles with tax filings.

ADVICE

QuickBooks or Clio Accounting?

If using Clio Accounting, stick with it and avoid parallel QuickBooks use.
For QuickBooks, the Plus version is recommended for better reporting and Clio integration, costing around $90 monthly for multiple users.

ADVICE

Hire a Bookkeeper Early

Hire a bookkeeper from the start to avoid end-of-year reconciliation struggles.
Find affordable bookkeepers through bar associations or peer recommendations.

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Guest Peggy Gruenke is an expert in the accounting management tools tailored to small law firms. Gruenke is the founder and co-owner of CPN Legal, helping small and solo firm lawyers manage and grow their business through legal software solutions and outsourced financial management and bookkeeping services.

Let’s talk about your firm’s finances and profitability: how are you keeping track of your business? Hear what’s new in automated accounting packages – but don’t give up on Quickbooks, and don’t cut ties with your bookkeeper.

Online accounting services are great. But they are not meant to replace a professional, especially as your firm grows. You’re not a bookkeeper, you’re a lawyer. But these tools do help with the basics of money management. The challenge is mixing and matching.

Operational efficiencies and financial planning are part of running a successful firm. Don’t shortchange the importance of bookkeeping and managing your income, marketing ROI, expenses, and taxes. It’s vital you keep your finger on the pulse of your business, and there are tools and people who can help you. As Gruenke says, “Treat your business with respect.”

Questions or ideas about solo and small practices? Drop us a line at NewSolo@legaltalknetwork.com

Topics:

If you’re a small or solo firm, you’re a business. Every business must track their finances, their expenses, and their taxes. Hear about the latest tools that help you track every part of your firm’s financial life.
Repeat after us: Lawyers are not bookkeepers. This is why you need not only software but someone who tracks your business performance, watches your bottom line, and keeps you ready for tax time.
Security, checks and balances, and financial snapshots are all vital. It’s a lot to keep up with, but investing the time and money to assemble the tools you need will help you grow (and profit).

Mentioned in This Episode:

Clio Cloud Conference 2025

Previously on New Solo, “New From Clio: Legal Practice Management Including Legal Accounting”

Previously on New Solo, “Money Management 101 for Solo and Small Firm Professionals”

Previously on New Solo, “Oh, The Messes We See”

Clio Legal Trends Report

Chase Business credit cards

Capital One Business credit cards

ABA Techshow