By Julie Bays

January is a month of new beginnings. It is a time when many of us buy fresh planners, set ambitious goals and make promises to ourselves about the year ahead. However, if you are a solo or small firm lawyer, there is one resolution that often slips through the cracks: taking an honest, unhurried look at your firm’s finances.

Let’s be real. Most of us did not choose law because we love spreadsheets and expense reports. If last year felt hectic or unpredictable, a financial review might sound like just another chore. Still, a quick January check-in can make a world of difference for your practice, your clients and your peace of mind. It does not need to be complicated or time-consuming; consider it a straightforward, preventative step that you’ll appreciate having taken.

Start With the Big Picture: What Actually Happened Last Year?

One of the most useful ways to check in on your firm’s financial health is simply comparing what you thought you would spend with what you actually spent. It’s a quick reality check, and it often reveals more than you expect. Whether you kept a detailed written budget or just had a general sense of your expenses throughout the year, this step helps you understand how close your expectations came to real life.

If you created a budget last year, great! Pull it out and look at how things lined up. And if you did not, you can still get a clear picture of where your money went by reviewing your bank statements, profit and loss reports or credit card summaries.

As you go through the year, start grouping your expenses into broad categories. Look for your predictable, fixed costs, like rent, software and insurance. Then look at your variable expenses: travel, CLEs, meals, marketing and the occasional unplanned “I need this now” purchase. Don’t forget the surprises, such as equipment replacements and repairs.

Once everything is sorted, patterns usually start to appear. Maybe software expenses crept up more than you realized. Did travel costs spike during busier months? Maybe a few “one-time purchases” were not actually one-time. The goal is to identify where small adjustments can help make next year more stable and predictable.

Evaluate Your Revenue Realistically

Law firm revenue is rarely steady. Most solos have peaks and valleys, and those valleys feel deeper when you are the only one worrying about payroll, rent or taxes. January is a good time to ask:

• Did your firm meet its revenue needs consistently?
• Did you set aside enough for quarterly taxes?
• Are you paying yourself a predictable amount, or are you still living on the “whatever is left over” model?

If billing or collections lagged last year, consider implementing small process changes, such as faster billing cycles, automated reminders or shifting more communication to client portals. When revenue becomes more predictable, your decision-making becomes more confident.

Leveraging Technology

Leveraging technology can significantly streamline these processes and enhance your firm’s financial stability. Automated billing solutions and online payment platforms help ensure invoices are sent promptly and payments are tracked efficiently, reducing delays and minimizing human error. Many modern legal practice management systems offer built-in tools for generating invoices, sending automatic reminders and even providing clients with secure online portals for communication and payments.

If you do not have billing and trust accounting software, one practical way to use this technology is by implementing Smokeball Bill, which is a free benefit for OBA members. Smokeball Bill allows you to easily generate invoices, track payments, reconcile trust accounts, view detailed reports and set up credit card payments in one platform.

Spot The Easy Wins: Small Tweaks, Big Impact

Lawyers may assume that improving profitability requires dramatic changes. Often, the opposite is true. Look for simple adjustments with meaningful upside:

• Consolidate legal research tools if you are paying for more than one platform without using them fully. The OBA offers vLex Fastcase, a research platform that is a free OBA member benefit.
• Audit your software licenses and cancel unused accounts.
• Set caps on discretionary spending, like meals, gifts or marketing experiments.
• Reduce paper and postage costs by leaning more heavily on electronic communication and client portals.
• Review insurance, phone and internet contracts. These rates change more often than most lawyers realize.

These steps alone can produce hundreds or thousands of dollars in annual savings, especially for small firms.

Leave Room for the Big Things

Most firms make at least one larger purchase every year. Microsoft is no longer supporting Windows 10, so do you need a new laptop? You may want a second monitor, upgraded software or office furniture. Instead of allowing these events to occur unpredictably, proactively plan for them. Setting aside a small amount each month prevents the “budget earthquake” that happens when a major item appears unexpectedly. It also allows you to time purchases for revenue-heavy months. 

Plan for Professional Growth and Technology

CLEs, conferences and technology upgrades are not “extras.” You should plan these to improve your competence and directly benefit clients. January is the perfect time to map out which skills you want to sharpen and what tools you want to upgrade. Even a simple annual plan helps ensure that investment in your practice happens intentionally, not reactively.

To maximize the benefits, consider creating a professional development calendar at the start of each year. Identify specific CLE courses, conferences or webinars you want to attend, and set aside funds for registration and travel.

Set One Simple Goal for 2026

If the idea of budgeting still feels overwhelming, here is some good news: You do not need to transform your entire financial system to make meaningful progress. In fact, the most successful small-firm lawyers I work with usually focus on one financial habit at a time. Just one. When that habit becomes routine, everything else gets easier.

Choose a goal that feels realistic – something you can stick with on a busy week, not just when you’re feeling motivated in January. Here are some options to consider:

• Start a simple written budget. Nothing fancy. Even a one-page document listing expected revenue and monthly expenses can dramatically improve decision-making. You can refine it over time.
• Bill on the same day every month. Lawyers often underestimate how powerful a consistent billing cycle can be. Clients appreciate it, receivables improve and revenue becomes more predictable.
• Reduce aging receivables. Maybe your goal is to bring all outstanding invoices in under 60 days, set up automated reminders or reach out personally once a quarter. Pick a method that feels doable.
• Review software subscriptions quarterly. So many firms quietly bleed money on unused tools. A brief review every few months can save hundreds of dollars per year.
• Pay yourself a steady monthly salary. This may feel counterintuitive for solo practitioners, but it creates stability. Even a modest, predictable amount helps both your personal finances and your business planning.
• Build a “rainy day” fund for the firm. Even setting aside a small amount each month can protect you from the inevitable slow period, unexpected repair or equipment crash.

Lawyers tend to be high achievers, which means we also tend to create long lists of ambitious goals. Focusing on one goal removes the pressure. It builds confidence and creates a sense of progress that carries into the rest of your financial habits.

January Is Your Reset Button

You do not need to become an accountant or enjoy working with spreadsheets, but you do need a clear understanding of your firm’s finances and a few intentional adjustments to help the year run smoothly. And if you find yourself unsure about what the numbers are telling you, this is the perfect time to consult with your CPA. They can explain the financial picture, answer questions you may not know how to ask and help you avoid unpleasant surprises at tax time.

Set aside an hour, pour a cup of coffee and look back at last year’s numbers. A few thoughtful decisions now can make the months ahead more predictable and profitable. Here’s to a stable, productive and successful 2026!

Ms. Bays is the OBA Management Assistance Program director. Need a quick answer to a tech problem or help solving a management dilemma? Contact her at 405-416-7031, 800-522-8060 or julieb@okbar.org. It’s a free member benefit.

Originally published in the Oklahoma Bar Journal — January, 2026 — Vol. 97, No. 1