THE OKLAHOMA BAR JOURNAL 82 | JANUARY 2026 Law Practice Tips By Julie Bays January Tune-Up: A Friendly Reminder To Analyze Your Firm’s Bottom Line 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
RkJQdWJsaXNoZXIy OTk3MQ==