I’m a big fan of the Consumerism Commentary…very well done and informative financial blog. One of the best things they do over there is the primary blogger posts his personal balance sheet each month. So I can see his income, expenses, ect. Very useful for helping readers get their finances under control.
Partly to motive myself regarding financial management and frankly to lay it all out there for our readers, I’m going to start doing the same here for my solo practice law firm. I’m not laying non-law firm stuff out here or getting too personal, but I do want everyone to learn about building a law practice and selfishly I’d like to put it out there from my own benefit, namely hearing from our readers about what I can be improving upon.
So here is my Firm’s income/expense figures for January ’09:
Gross Income $2,811.71
Business Expenses
Office supplies 71.95
Annual ARDC fee (law license) 289.00
Train ticket(s) 32.30
Service organization dues 100.00
Malpractice insurance 96.24
Credit card processing fees 15.91
Web host 9.95
Mail/postage 37.58
Cell phone(s) 91.00
eFax 59.90
Bank service charge 15.00
Office space 40.00
Court fee 25.00
Petty cash/lunches/gas 112.13
Business Expense Total: $995.96
January 2009, Net Income: $1,815.75
Peter’s Commentary: January’s generally my Firm’s least profitable month of the year by far and it was likely worse than usual this year. On the one hand I was out of the office and town a LOT so there wasn’t a lot of billing done in January so most of the revenue was of a residual nature from clients who are paying down past-due balances. And on the expenses side, nearly 1/3 of the expenses was my annual law license fee which is a once a year expense.
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You know, I have to tell you, I really enjoy this blog and the insight from everyone who participates. I find it to be refreshing and very informative. I wish there were more blogs like it. Anyway, I felt it was about time I posted, I
Over the last several weeks I have been considering the possibility of solo practice but could not estimate the expenses involved…. This information is simply illuminating. Thank you.
Wow!, this was a top quality post. In theory I’d like to write like this too – taking time and real effort to make a good article… but what can I say… I procrastinate a lot and never seem to achieve anything
Agree +