10/22/2026
A lot of law firm owners get this wrong: a big operating account balance can look like profit. đź’°
The mistake is treating cash in the bank as proof the firm is doing well. That balance may still need to cover payroll, taxes, case expenses, credit cards, upcoming vendor bills, or money that should not be treated as spendable yet.
The better move is to judge the firm by what the cash has to do, not just by how much is sitting there. đź§ľ
That shift makes owner draws more deliberate, reduces the chance of a surprise cash crunch, and gives a much clearer picture of whether the firm is actually producing money or just holding it temporarily.