Guide to Opening your Practice - Appendix 6

Cash Flow Worksheet

The process of developing and tracking a monthly cash budget forces you to identify how much it costs to operate and manage your law practice. The budget process is one of the most essential management tools for maintaining the financial health of your practice.

On a monthly basis you should compare your actual vs. budgeted cash flow. By creating and reviewing a monthly cash flow report, you can make decisions on certain expense items based on the availability of cash. The careful monitoring of a cash flow budget can make the difference between success and financial failure of a practice.

  Budget Actual
Sources of Cash:
   
Fee Income:
$
$
Hourly Fee Income
$
$
Flat Fee Income
$
$
Contingency Fee Income
$
$
Retainer Fee Income
$
$
Other Income
$
$
Total Cash Available
$
$
Uses of Cash:

 

Payroll:
$
$
Partners
$
$
Associates
$
$
Paralegals
$
$
Law Clerks
$
$
Assistants
$
$
Other Staff
$
$
Total Payroll Expenses
$
$
Taxes and Benefits:
$
$
Payroll Taxes
$
$
Insurance
$
$
Parking
$
$
Other
$
$
Total Taxes & Benefits
$
$
Office Expenses:
$
$
Advertising
$
$
Bank Charges
$
$
Books
$
$
Other Library Expenses
$
$
Client Development
$
$
Equipment Rental
$
$
Insurance-Gen.Liability
$
$
Insurance-Excess
$
$
Maintenance/Repair
$
$
Office Supplies
$
$
Periodicals
$
$
Professional Fees/Dues
$
$
Rent
$
$
Taxes
$
$
Telephone
$
$
Travel Expenses
$
$
Utilities
$
$
Total Office Expenses
$
$
Client Related Expenses:
$
$
Filing Fees
$
$
Court Reporters
$
$
Expert Witnesses
$
$
Travel
$
$
Parking
$
$
Other
$
$
Delivery Services
$
$
Total Client Related Expenses
$
$
Total Cash Uses
($ ________)
($ ________)
Total Cash Sources
$
$
Cash Balance
$
$