Smart Budgeting Strategies: How to Prepare Your Firm for Maximum Success

Tax Day is here… and it’s also the end of the first quarter! For law firms, this is an excellent time to build your budget if you don’t already have one in place. Budgets might seem daunting, but they are essential for creating a clear financial roadmap. I think about budgets every day because, well, it’s what I do, but recently, I’ve been approaching them from a slightly different perspective. I realized that building a budget is a lot like working on a puzzle, which also happens to be one of my favorite hobbies.

When starting a puzzle, it can feel overwhelming. You open the box, dump 1,000 mixed-up pieces onto the table, and stare at the chaos. Unless, like me, you had someone like my Grandmother Yowie teach you the rules of puzzle working, you might not even know where to begin. For example, you’ll often start by identifying the corner pieces, separating out the edges, and creating a frame before tackling the middle. Same with a budget: You should start with the big-picture pieces—your revenue, fixed costs, and essential expenses—before filling in the finer details. It’s all about breaking down what seems complicated into manageable steps. Once you get started, the picture becomes clearer, and everything starts falling into place.

Steps to Simplify Your Budgeting Process

By breaking down budget creation into clear, actionable steps, you can take control of your finances with confidence. Think of a budget as a tool to help you build a solid foundation for your financial future. Here are the essential steps to simplify the process and make budgeting work for you.

Step 1

Turn over all the pieces to the right side before you do anything else. You have to be able to see everything from the right perspective in order to get started. The same holds true for building a budget—it’s all about understanding the bigger picture. Start by thoroughly reviewing your prior year’s financials to get a baseline of performance. Then, examine what has happened so far in the current year, identifying any trends, unexpected expenses, or changes in income. Pay close attention to how much money has come into and gone out of your firm, breaking it down into categories like operational costs, investments, and revenue streams. By piecing together all these details, you can create a budget that not only reflects your business’s current financial health, but also sets a clear path for future growth and stability.

Step 2

Work the frame first. Don’t you dare even THINK about putting a “middle piece” in until that frame is finished! Building a solid financial plan starts with a sturdy framework, and that’s exactly what Vista’s condensed P&L Analysis provides—a strong, clear outline for your budget. We understand that forecasting revenue in a PI law firm can be tricky. It can't be just about guessing; it has to be about being strategic. Start by analyzing your revenue from the past few years. What trends do you see? Then, take a hard look at your current caseload. What cases are likely to close soon, and what’s their potential value? Finally, evaluate your pipeline—what’s on the horizon that could impact your bottom line? Pull all of this together to set a realistic revenue goal.

You’ve heard us say this a million times, and we’ll say it again because it works:

Revenue minus marketing/case acquisition costs, minus attorney compensation, minus non-attorney compensation, minus other expenses, equals profit.

This simple formula gives you the frame to build a stable financial strategy. Once that frame is in place, you can confidently start adding the middle pieces, knowing your budget is built on a solid foundation. There’s your frame. Done. Now, let’s get to work!

Step 3

The hardest part… the middle. Use the budget frame to guide you here, as well. Just like starting the middle of a puzzle works best by identifying standout pieces—by color, by object, or other recognizable patterns—handling the middle of your budget becomes more manageable when you break it into categories. Start with something like marketing and case acquisition—focus on that section and map out your plans. What marketing campaigns are essential this year? Are there new strategies or digital tools you plan to invest in? Once you've tackled that, move on to the compensation section, which often requires a bit more thought.

When reviewing compensation, ask yourself: Will it be similar to last year, or are there changes on the horizon? Do you anticipate hiring additional team members, and if so, in which quarter will those hires take place? This is also a great time to evaluate the structure of your team's compensation. Is your current bonus or commission structure still the most effective for motivating your team and aligning with revenue projections? Could introducing a new system improve performance? You should also consider whether outsourcing some of the non-attorney duties, such as administrative work or IT support, might free up your team to focus on higher-value tasks while improving overall efficiency.

Once you've worked through those categories, move on to the other expenses section, which tends to be a bit more straightforward to calculate. These are the remaining pieces of your budget puzzle, and prior-year expenses can provide a solid foundation. Use those numbers as a baseline, then adjust for changes or updates. For example, factor in new lease agreements, updated vendor contracts, or upcoming office expense needs, such as equipment upgrades or software licenses. By systematically addressing each section, you’ll create a comprehensive, well-thought-out budget that positions your firm for success.

Step 4

Take a look at the finished product. Take a close look at your profit. Is it where you want it to be, or is there room for improvement? Does the projected profit provide enough cash flow to effectively run the law firm, cover operational expenses, and adequately support the firm owners? It’s important to evaluate whether your projected revenue aligns with your expense percentages. For instance, are you overspending in certain areas or missing opportunities to allocate resources more efficiently? From there, make the necessary adjustments to ensure your financial goals are achievable and sustainable. Don’t forget to regularly compare your actual results against what you projected to happen—this step is key to staying on track and identifying any gaps early. The good news? Vista is here to help you with these critical evaluations and adjustments, ensuring your firm stays financially healthy and on the path to success. Let us help you make sense of the numbers and plan strategically for the future!

The Whole Picture…Piece by Piece

By prioritizing effective budgeting and taking a more creative approach, law firms can achieve greater financial stability and long-term success. A well-structured budget helps allocate resources efficiently and provides a clear roadmap to meet operational and strategic objectives. It ensures firms are prepared for unexpected challenges while focusing on profitability and growth. At Vista, we understand the complexities of managing a law firm’s finances and are committed to providing the tools and expertise necessary to build and maintain robust budgets.

I’m sure my Grandmother Yowie didn’t anticipate that teaching me to work puzzles would one day translate into my professional life, but I am certain she’s looking down from Heaven with a big smile and getting quite a kick out of it. She always believed in the value of patience and problem-solving, though I doubt she imagined it would play such a role in shaping my career. I can even hear her unforgettable chuckle, that warm, familiar sound that always made me feel so loved. Those hours we spent together over jigsaw puzzles were lessons in focus, determination, and celebrating small wins. Now, I think I’ll work on another puzzle and smile, thinking of her.

Short-Term Pain, Long-Term Gain: Fitness in Financial Processes and Reporting

You know the feeling. You start a new diet or exercise routine, and initially, it’s all discomfort, sore muscles, and second-guessing your choices. But once you push past that initial phase and build strong, consistent habits, the results speak for themselves. You get stronger, the pain fades, and you start to see progress that makes it all worthwhile. Financial fitness in your law firm’s accounting functions is no different. The process may feel challenging at first, but the long-term gains for your firm make every effort along the way more than worth it.

When you engage Vista for Fractional CFO Services, we know what the ultimate goal looks like—a lean, efficient financial process that equips your leadership team with accurate, actionable data. But getting there? It takes commitment, time, and sometimes a little grit. This isn’t a quick fix—it involves developing sustainable habits that transform your financial reporting and help build a better-run, more successful law firm.

The Challenge with Day-to-Day Accounting in Law Firms

More often than not, the person managing your firm’s day-to-day accounting isn’t a trained accountant. Chances are, it’s a team member who “fell into” the role because they’ve proven themselves to be trustworthy, reliable, and capable in other areas. While these attributes are invaluable, accounting for a personal injury law firm comes with unique complexities that can overwhelm even the most diligent bookkeepers.

To complicate matters further, many CPAs—even those with years of experience—aren’t up to speed on the nuances of personal injury law firm accounting. The unique challenges of operating in this space require specialized expertise, which is exactly where Vista steps in.

Common Issues in Law Firm Accounting

Why does law firm accounting feel so different from traditional accounting areas? Here are some specific hurdles that firms face when it comes to financial processes:

These challenges highlight the importance of having not just accurate bookkeeping, but a system tailored to the needs of a law firm—and a team that knows how to use it.

The Vista Approach to Financial Fitness

Think of Vista as your personal trainer—except instead of pushups and crunches, we focus on the systems and processes driving your firm’s financial health. Vista’s Fractional CFO Services start by identifying areas for improvement in your accounting department. From there, we train your team on best practices for capturing financial activity, implementing processes that streamline day-to-day bookkeeping, and providing reports that are as actionable as they are clear. 

The Road to Financial Fitness

The path to better financial systems is not always smooth. Implementing change often comes with growing pains, but Vista believes in full transparency about what to expect along the way. Here’s a glimpse of the typical process:

  1. Cleaning Up Accounting Processes:
    • Many firms start with a chart of accounts that’s a mess—redundant categories, unclear classifications, and inconsistent entries. We begin by streamlining and standardizing this foundation.
    • Expect us to dig into past records to correct errors and inconsistencies. While this step can be labor-intensive, it’s necessary to set the stage for accurate reporting
  2. Developing Consistency:
    • We emphasize developing and sticking to new habits for how financial activity is recorded. Your team will learn the “why” behind these processes, which fosters commitment to doing things right every time.
  3. Building Useful Reports:
    • Once your accounting system is running efficiently, we implement reporting structures that provide deep insights into cash flow, profitability, budgeting, and more. These reports empower your leadership team to make smart, data-driven decisions.
  4. Creating a Supportive Team Culture:
    • Change is never easy, but we understand the value of collaboration. Most bookkeepers we work with are relieved to have guidance and excited to learn better methods. They see firsthand how improved processes save them time and effort in the long run.

Real-World Results

We’ve worked with countless law firms where team members resisted change at first, only to later share how grateful they were for the transformation. When new processes are finally in place, we're hear feedback like:

The best feedback, however, comes in the form of results. Clean accounting books and actionable insights translate directly into better decision-making, healthier cash flow, and happier firm partners who feel in control of their business.

Why Financial Fitness Is Worth It

Is the process of transforming your firm’s financial processes fun? Not always. But is it worth it? Absolutely. Here’s why:

The Benefits of Financial Fitness

Overcoming the Growing Pains

Vista's Fractional CFO is more than just a consultant—we’re a coach. We work alongside your team every step of the way, offering support and guidance as they adjust to new processes. We’ll help you focus on the long game by keeping the end goal in sight. That transformation phase might be hard and messy at times, but it’s nothing we haven’t guided firms through before.

Here are some ways to manage the growing pains:

Start Your Fitness Journey Today

Improving your financial processes and reporting is like getting into shape—it requires dedication, patience, and a willingness to focus on long-term results. Just like building physical fitness, the journey can be challenging, but incredibly rewarding. The benefits, from greater financial clarity to smoother operations, will make all the effort worthwhile. At Vista, we bring years of experience, cutting-edge tools, and a hands-on, collaborative approach to help guide your firm toward financial fitness every step of the way.

Our Fractional CFO Services are designed to address the unique needs of law firms, offering a comprehensive roadmap to clean up outdated practices, streamline processes, and ensure consistency across the board. Whether it’s improving cash flow management, implementing better reporting systems, or identifying areas to maximize growth, we work closely with your team to build solutions that create a lasting transformation. This isn’t a quick fix or a one-size-fits-all approach—it’s a carefully tailored process that focuses on both immediate priorities and long-term sustainability.

The process might not be quick or painless, but we’re here to ensure the journey is effective, purposeful, and truly impactful. With Vista by your side, you’ll gain not just a partner, but a coach who is committed to your success. Together, we can turn today’s challenges into tomorrow’s wins.

Are you ready to take the next step in your law firm’s financial fitness? Reach out to Vista today, and let’s start building a stronger financial future for your firm.

Bringing Harmony to the Unharmonious: Being an Enneagram 9 in the Workplace

My Vista colleague and friend, Kendall Abbott, recently wrote a blog about Enneagram 8s in the workplace. (Check out that great read here!) Enneagram 8s fascinate me…. I’m even married to one. Kendall’s blog was outstanding and got me thinking about what I know best – Enneagram 9s… because I am one.  

The Enneagram is a comprehensive personality framework used to understand the unique motivations underlying human behavior. It categorizes individuals into nine distinct types, each with core emotions, fears, and desires that influence how they interact with the world. This model serves as a powerful tool for personal growth and interpersonal understanding, providing insights into one’s deep-seated patterns of thinking and acting. By identifying their Enneagram type, individuals can gain greater self-awareness, leading to improved relationships both personally and professionally. In this blog, we'll examine the distinct qualities of Enneagram 9s and explore how their natural inclination towards harmony can be leveraged to create a more cohesive and productive work atmosphere. By examining the strengths and challenges faced by Enneagram 9s, we can discover valuable insights into maximizing their potential in professional settings.

Characteristics of an Enneagram 9

People who know the Enneagram know that the 9s, or “Peacemakers,” are often recognized by their carefree and easy-going nature. They are defined by their desire for internal and external peace. I think 9s are very easy to identify in your workplace—they are typically laid-back, peaceful, and agreeable folks. They are not boat-rockers, disruptors, or difficult-to-manage people. They have an inherent ability to empathize with others, making them compassionate listeners who can understand diverse perspectives without judgment.

And while those qualities are great, 9s also have their challenges. This type prioritizes harmony above all else, seeking to avoid conflict and tension wherever possible. Though they can sometimes be seen as indecisive or complacent due to their desire to keep the peace, 9s are also steadfast and supportive team members, ensuring that all voices are heard and considered in collaborative situations. Their core fear of loss and separation drives them to maintain peaceful relationships, often at the expense of their own needs and desires. By recognizing these characteristics, colleagues can better appreciate the value a 9 brings to a cohesive, harmonious work environment.

Enneagram 9s in Leadership Roles

Being in a leadership position and being an Enneagram 9 can be challenging for sure, even though 9s are noted for being wise leaders.  Abraham Lincoln, Ronald Reagan, and Queen Elizabeth II are well-known 9s.  Enneagram 9s are inherently equipped to be effective leaders due to their deep-seated desire for harmony and inclusivity within their teams. These individuals naturally excel in fostering a collaborative and supportive environment where all team members feel valued and heard. Their empathetic nature allows them to approach conflicts with a calm demeanor, defusing tension while encouraging open communication and understanding. Their ability to view situations from multiple perspectives enables them to make balanced and thoughtful decisions that account for the needs of all stakeholders. This inclusive leadership style strengthens team cohesion and boosts morale and engagement, which helps to drive the collective success of the organization. 9s are adept at navigating complex dynamics with poise, guiding their teams toward unified goals and harmonious outcomes.

While 9s bring peace and are skilled at resolving conflict, it’s emotionally draining for a conflict avoider to deal with unpleasant situations, especially when they know confrontation is involved.  Just because 9s appear smiling, happy, and agreeable most of the time doesn’t mean they feel relaxed and comfortable in uncomfortable situations.  I know when I see conflict coming, I see a flashing sign in my head that says “ABORT! ABORT!  ABORT!  RUN!!!!”  I admire people who are able to confront things head-on, confidently, and comfortably.  

Maximizing the Potential of Enneagram 9s in the Workplace

So, how do you successfully work with 9’s and bring out their best in your firm?  Clearly, you can’t isolate all of the peacemakers from conflict and uncomfortable situations. (If you can, please contact me immediately and let me know how you did that because I am all in!) Here are some ways you, as a leader, can utilize your Enneagram 9 team members:

  1. They are natural mediators because they possess the unique ability to see every side of an argument. While type 9s tend to avoid conflict, their knack for keeping the peace is unparalleled. This quality can be a tremendous asset to your firm! When your team is faced with making a decision about a company policy or implementing a new process, make it a point to consult with your 9s. They have an innate talent for viewing situations from multiple perspectives, which allows them to instinctively consider the effects of decisions on various groups of people. Their empathetic nature enables them to connect with others' feelings and viewpoints, making them invaluable in navigating discussions. Moreover, they can facilitate understanding among different decision-makers, helping to mediate differences and foster collaboration. In essence, leveraging the strengths of your type 9s can lead to more thoughtful and inclusive decision-making processes within your organization.
  2. They don't want the final word. It's important not to place the burden of a final decision on a Type 9 individual. These individuals tend to struggle in this area because they desire to bring insight and perspective to discussions, yet they often find themselves indecisive when it comes to making the ultimate choice. This indecision stems from their desire to consider everyone's feelings and viewpoints, which can sometimes lead to a reluctance to take a definitive stand. However, a commendable attribute of Type 9s is that once a decision is reached, they demonstrate unwavering loyalty to it. They not only support the decision but also provide reassurance to others involved, creating a sense of stability and trust. Their natural ability to foster harmony in group settings is one of their greatest strengths. Type 9s are known for being peaceful and grounded, often serving as calming influences who help facilitate collaboration and understanding among their peers. This ability to bring people together and maintain a balanced atmosphere makes them invaluable in both personal and professional relationships.
  3. They tend to repress their feelings and minimize their experiences. Remember that meme with the dog drinking coffee while surrounded by flames and the dog saying, “It's fine.  Everything is fine.”?  That dog is definitely a 9.  Nine’s can be tricky that way – they don’t want to be the cause of conflict, so often they will avoid telling you how they truly feel to preserve the peace.  They will adapt to a situation at extreme emotional cost to them in order to minimize the conflict and anything potentially upsetting.  Nines can go on emotional strikes… instead of speaking up and saying how they feel, they will simply shut down, but they feel very deeply at the same time and have a hard time shaking things off.  I know that shutting down and internalizing is my personal default when I am hurt or unhappy.  So when a 9 tells you, “That’s fine” or “ok, sure,” you can’t really know for sure they mean that… so ask them again.  Let them know you want to know exactly how they feel and that “I’m fine” is not the answer you always want to hear.  Let them know you want them to speak up, otherwise you might miss out on something that is valuable and important. 


Creating an environment that nurtures the growth and development of Enneagram 9s within the workplace is essential for leveraging their full potential. Leaders should implement practices that encourage these individuals to voice their opinions and express their needs openly. Providing regular feedback and creating safe spaces for constructive discussions can help 9s build confidence in articulating their perspectives. It's also beneficial to engage them in project leadership opportunities, allowing them to practice decision-making in a supportive context. Encouraging cross-departmental collaboration can highlight their skills in mediation and diplomacy, further enhancing their strengths. By promoting a balanced environment that acknowledges both their contributions and their personal needs, organizations can empower Enneagram 9s to flourish as influential figures and valuable team members.

A Deeper Level of Understanding

I can tell you this from personal experience: When Enneagram 9s feel secure in the workplace, they are energized to accomplish tasks and goals—and they do this with enthusiasm… all while supporting your firm's mission. These are your team players. Way better than an emotional shut-down, right?

Personality assessments such as the Enneagram offer profound insights that empower individuals to achieve a deeper understanding of themselves. By exploring these unique personality types, one can uncover intrinsic motivations and potential areas for personal growth. This understanding is invaluable for leaders in managing a diverse and dynamic team. It provides the framework to tailor leadership approaches that maximize each team member’s potential, fostering an inclusive environment that cherishes diversity. The ultimate goal of these assessments is not merely classification but rather enhancing empathetic relationships and guiding individuals toward becoming the best versions of themselves. When leaders harness these insights, they enrich their organizational culture and inspire their teams to excel collectively and individually.

What You Can Measure, You Can Manage

It requires work and forethought to optimize operations at a plaintiff law firm. But, once you’ve put in the effort, you’ll likely enjoy positive results. You’ll find yourself with a great team in place, climbing conversion rates, and departments firing on all cylinders. It’s at this point in the journey that many firm owners start wondering: Now what? What are the financial implications of operations optimization efforts?

Here’s the reality…

The financial management part of your business is not always fun. I’ve noticed in many firms I’ve worked with, the owners either have an information overload or deficit, with very little in between. Either option is not desirable. It shouldn’t be so complicated and unpleasant to assess the financial health of your firm. Oftentimes, five data points are as good or better than thirty data points! Plenty of business owners measure profitability purely by cash in the bank. While having cash on hand is important, like close to oxygen important, there are other financial components to consider, such as your balance sheet, profit and loss statement, cash flow statement, ratios, liquidity, and tax planning. We believe these few concise reports can help you focus on what’s important and identify key trends. In this blog, we’ll introduce you to some of these reports and outline how important they can be to your organization’s financial health.

Balance sheet and profit and loss statement

I’m sure all of you have seen your firm’s balance sheet and profit and loss statement. This has to be generated at least once a year in order to prepare your tax return, but it’s important for you to look at them monthly or, at the very least, quarterly. It’s also equally important that the categories listed on the statements are useful to you and not just your CPA. For example:

  • Separate attorney compensation from non-attorney compensation.
  • Departmentalize your financials by case type or location so you can track profit centers.
  • Summarize your overhead expenses in a few categories, and compare those totals to a budget.

Cash flow statement

An often dismissed financial statement is the cash flow statement. Don’t knock it ‘til you try it! This powerful tool tells you where your money went over a period of time. While the income statement tells you if you are profitable (or not), it doesn’t measure the cash outflow for case costs (if treated properly), equipment purchases, or debt service, nor does it measure the cash inflow from recovered case costs. A cash flow statement starts with your beginning cash balance, shows you all of the sources and uses of your cash and reconciles to an ending cash balance.

Budget to actual expenses analysis

My favorite financial measurement tool is a comparison of budget to actual expenses. By budget, I don’t mean “you overspent on office supplies by $50.” A budget should be used as a tool for planning at the beginning of the year. When developing your budget, ask questions like:

  • Do you need to hire any new team members?
  • Does the firm have any upcoming large expenditures, like software or outsourcing?
  • Does your pipeline of cases look like it can handle all of your upcoming cash outflows for the year?
  • Have you accounted for traditionally lean months if your settlements tend to ebb and flow?

A budget-to-actual comparison can help you see if what you thought would happen in your firm is actually happening. With this information, you can pivot quickly if needed. These reports can help your firm’s overall financial health and help you make better, more informed business decisions. But, we understand a lot of firms just don’t have the time, talent, and know-how to pull and analyze regular financial data. That’s why we’ve developed a brand-new service for plaintiff law firms.

Introducing Vista’s Fractional CFO Services

Our financial acumen and perspective on the plaintiff law industry allow us to partner and strategize with you on your firm’s financial health and business structure. Our team will analyze, recommend, communicate, and provide financial leadership. Vista’s Fractional CFO Services focus on the business and financial side of your firm, so you can focus on practicing law. We work with you throughout the year to address financial, accounting, and tax requirements with a specific emphasis on the unique needs of plaintiff law firms.

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