Ryan Kimler | Money Matters: What Every Lawyer Should Know About Law Firm Profitability
Description
Ryan Kimler is the founder of Net Profit CFO and host of the Net Profit Podcast. He and his team help law firm owners understand their numbers, make better business decisions, and build more profitable and sustainable practices by using accounting and finance to give firm leaders clear information they can act on, so their businesses stay financially healthy and have the resources to grow.
WHAT'S COVERED IN THIS EPISODE ABOUT LAW FIRM PROFITABILITY
Law school teaches lawyers how to practice law, not how a law firm makes money. Many attorneys work hard, bill hours, build relationships, and still don't really know how the business side works. The truth is, partners and firm leaders usually want younger lawyers to understand this—they just don't always talk about it unless someone asks.
When you understand how the money moves through a firm, everything gets clearer. You can see what makes a matter profitable, what slows things down, and how your work contributes to the bigger picture. It also gives you insight into the decisions that drive compensation and advancement.
In this episode of The Lawyer's Edge, Elise talks with fractional CFO Ryan Kimler about the business of law and why every lawyer should understand it. They break down how law firms actually make profit, why busy doesn't always mean profitable, how pricing and staffing decisions affect results, and how lawyers at every level can use financial information to make smarter choices about their careers.
2:18 – Why good legal work doesn't automatically translate into compensation
4:12 – The silent profit killers: time leakage, realization, and collection rates
8:26 – Two lawyers bill the same hours. One generates more profit
12:13 – Lawyers get promoted into leadership without ever learning the business of law
15:02 – Why firm leaders are relieved when associates ask how the business works
18:16 – What financially healthy firms track that struggling firms ignore
21:17 – Lawyers lose money doing their own admin work instead of delegating
27:21 – A simple way to know when it is time to hire help
30:39 – The pricing mistake that leaves money on the table at many firms
35:20 – Ryan's biggest advice for lawyers who want to earn more
MENTIONED IN MONEY MATTERS: WHAT EVERY LAWYER SHOULD KNOW ABOUT LAW FIRM PROFITABILITY
Get connected with the coaching team: hello@thelawyersedge.com
SPONSOR FOR THIS EPISODE
Today's episode is brought to you by the Ignite Women's Business Development Accelerator, a 9-month business development program created BY women lawyers for women lawyers. Ignite is a carefully designed business development program containing content, coaching, and a community of like-minded women who are committed to becoming rainmakers AND supporting the retention and advancement of other women in the profession.
If you are interested in either participating in the program or sponsoring a woman in your firm to enroll, learn more about Ignite and sign up for our registration alerts by visiting www.thelawyersedge.com/ignite.
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