Law Firm Budget Template

Once the categories look right, enter your projected revenue and expenses for the current month. If you're not sure where to start, pull last month's bank statements and billing reports and use those as your baseline — you don't need perfect numbers on day one. Fill in the revenue targets by matter type (hourly, flat fee, retainer, contingency), then work through the expense side starting with compensation, which is typically the largest cost. The Annual Summary and Dashboard update automatically as you fill in monthly data.

On the expense side, law firm costs break into three distinct buckets that behave very differently. Attorney compensation — including partner draws, associate salaries, and performance bonuses — is typically 40–60% of revenue and drives most budget conversations. Staff costs (paralegals, legal assistants, administrators) are more fixed and easier to plan. Overhead — malpractice insurance, Westlaw and LexisNexis subscriptions, bar dues, CLE, office rent, and technology — tends to be stable but often grows quietly year over year as subscriptions and insurance premiums tick up. A good law firm budget makes all three visible and sets clear targets for each.