Advisory Service
Financial Reports & vCFO. Know your numbers. Lead your firm.
What Ethnum delivers
All
US jurisdictions — legal-specific reporting across all states
What Is Financial Reports & vCFO?
The financial clarity law firm leaders need — without the cost of a full-time CFO.
Most law firms run without a clear financial picture. Monthly reports are either missing entirely, produced from a generic small business template that doesn’t reflect legal economics, or delivered so late they’re already outdated. The result is that attorneys make decisions about hiring, pricing, and growth based on what they think is happening — not what is actually happening.
Ethnum’s Financial Reports & vCFO service delivers monthly law-firm-specific financial statements — profit and loss, cash flow, accounts receivable aging, and practice area profitability — along with virtual CFO advisory that turns those numbers into actionable decisions. You don’t just get a report; you get a financial partner who knows your firm’s numbers as well as you do.
This is not generic small business reporting repackaged for attorneys. It is built from the ground up for law firms — with legal revenue recognition, trust-to-operating flow tracking, partner draw management, and the practice area breakdowns that drive the decisions that matter most.
Reporting Format
Law-firm-specific P&L, cash flow, and AR aging reports
vCFO Advisory
Strategic financial guidance — not just numbers, but what they mean
Delivery Schedule
Reports delivered by the 15th of every month, consistently
Practice Area Tracking
Profitability broken down by attorney, practice area, and matter type
Your Point of Contact
One dedicated accountant who reviews your financials every month
What's Included
Every financial report your firm needs
Every report below is produced by your dedicated Ethnum accountant, every month, using law-firm-specific chart of accounts and revenue recognition standards — not repurposed small business templates.
Monthly Profit & Loss Statement
A law-firm-specific P&L that shows you exactly what the firm earned, what it spent, and what it kept — broken down by attorney, practice area, and expense category using legal chart of accounts standards.
- Revenue tracked by matter type and attorney origination
- Overhead and direct expenses correctly classified
- Monthly & YTD trends
Cash Flow Report & Forecasting
A clear view of your firm's cash position — what came in, what went out, and what is projected to arrive based on outstanding receivables and upcoming obligations. No more cash flow surprises.
- Operating cash inflows and outflows summarized
- 30/60/90-day cash position forecast
- Upcoming payroll and expense obligations flagged
Accounts Receivable Aging
A full aging report showing every outstanding invoice by client — current, 30, 60, and 90+ days — so you always know who owes you money and how long it has been outstanding.
- Full AR aging by client and matter
- Flagged accounts over 60 and 90 days
- Collections trend analysis month over month
Practice Area Profitability Analysis
Which practice areas are truly profitable, and which are being subsidized without anyone realizing it? We break down revenue, cost, and margin by practice area so leadership can make informed decisions on where to invest or pull back.
- Revenue and direct cost per practice area
- Attorney-level productivity and origination tracking
- Margin comparison across practice groups
vCFO Strategic Advisory
Your dedicated Ethnum accountant acts as a virtual CFO — reviewing numbers monthly, spotting trends early, and advising on growth and stability decisions.
- Monthly financial review call with your accountant
- Proactive alerts on cash flow and billing trends
- Hiring, pricing, and growth guidance backed by data
CPA-Ready Year-End Package
At year end, your CPA receives organized, properly formatted records — making tax preparation faster, more accurate, and more cost-efficient.
- Full-year P&L and balance sheet for CPA review
- Supporting schedules and transaction detail included
- 1099 preparation support and vendor classification
HOW IT WORKS
From your first month to a fully informed firm leadership team.
Once you’re onboarded, your financial reports run on a fixed monthly schedule. You receive clear, actionable numbers — and a financial partner who helps you understand what they mean.
The Problem We Solve
What goes wrong when law firms operate without clear financial reporting.
Making hiring decisions without knowing true profitability
Firms hire based on revenue growth without knowing if that revenue is actually profitable after overhead allocation.
- Ethnum’s profitability analysis reveals true net margins before hiring decisions are made.
Cash flow surprises that create partner stress
Without forecasting, firms can face payroll and overhead pressure before client payments arrive.
- Monthly cash flow forecasting gives visibility into slow-paying months before payroll day.
Generic reports that don’t reflect law firm operations
Standard bookkeeping reports fail to reflect contingency matters, retainers, and referral structures accurately.
- Ethnum builds legal-specific reporting that reflects how law firms actually operate.
Partner disputes driven by financial opacity
Unclear financial data can lead to disputes around compensation, equity, and distributions.
- Ethnum’s partner-level reporting creates transparency and reduces friction.
Monthly Financial Reporting Checklist
Profit & Loss statement delivered — law-firm-specific P&L with attorney and practice area breakdowns
Cash flow report produced — current position and 30/60/90-day forward-looking forecast
AR aging reviewed and flagged — every account over 60 days identified and escalation recommended
Practice area margins calculated — revenue, cost, and net by practice group for leadership review
Anomalies and trends flagged — anything unusual in the numbers surfaced proactively before it becomes a problem
Trust-to-operating flow verified — earned fees transferred correctly from trust, no commingling in the reporting period
Before Ethnum: most new clients have never received a complete, accurate monthly P&L that reflects their actual firm economics
~70%
Average Cost Savings vs. In-House
Ethnum clients receive controller- and CFO-level financial insight at a fraction of the cost of a comparable full-time hire — typically 60–70% less.
Who This Is For
Financial Reports & vCFO for every stage of law firm growth.
Whether you are a solo practitioner trying to understand your own numbers or a managing partner overseeing a multi-attorney firm, clear financial reporting changes how you lead.
Multi-Partner Firms
Partnership financials require consistent, transparent reporting that every partner trusts. We produce partner-level P&L, draw tracking, and origination credit reporting that keeps leadership aligned and informed.
Firms Planning to Grow
Growth decisions — hiring, office expansion, new practice areas — require clear financial data. We give you the profitability analysis and cash flow forecasting to make those decisions confidently, not hopefully.
Solo Practitioners
You deserve to know exactly what your practice earns and costs — not just what hits your bank account. Ethnum gives solo attorneys the same financial clarity that large firm managing partners rely on.
Firms Replacing a Bookkeeper
If your previous bookkeeper wasn't producing useful financial reports — or was producing them incorrectly — we rebuild the reporting infrastructure on a solid foundation and deliver reports that actually tell you something.
Practice Area-Heavy Firms
Litigation, family law, real estate, estate planning, immigration — every practice area has different economics. We break down profitability so you know where to invest and what needs attention.
Firms Ahead of Tax Season
If your CPA spends the first month of every engagement cleaning up your records, you are paying for time that should go to strategy. Ethnum's year-end package gives your CPA organized, accurate records from day one.
Why This Matters
Most law firms are either more or less profitable than they realize. You need to know which one.
10th
Reports delivered monthly — never late
~70%
Cost savings vs. an in-house controller or CFO equivalent
All
Legal-specific reporting standards across all US states
48h
Typical onboarding time from agreement to first report
How financial reporting changes law firms:
- Hiring decisions — know whether you can afford a new associate before you make the offer, not six months after
- Pricing strategy — see which matter types and billing structures produce the highest margin so you can focus on them intentionally
- Cash flow planning — eliminate the month-end anxiety that comes from not knowing whether revenue will arrive before payroll goes out
- Partner compensation — distribute draws and bonuses based on data, not assumptions, and reduce the most common source of partner friction
- CPA efficiency — hand your tax preparer organized, accurate records that cut preparation time and reduce your accounting fees
- Firm valuation — if you ever sell, merge, or bring in a lateral partner, clean organized financials are the first thing a buyer or partner evaluates
Your Monthly Deliverables
What lands in your inbox by the 10th of every month.
No chasing, no reminders. Every report is prepared, reviewed, and delivered by your dedicated Ethnum accountant on a fixed monthly schedule — with commentary that tells you what the numbers actually mean.
- Delivered by the 10th
Full Financial Reporting Package
Your complete monthly financial picture — P&L, cash flow report, balance sheet, and AR aging — all produced on a law-firm-specific chart of accounts and delivered with plain-language commentary.
- Cash flow report with 30/60/90-day forward outlook
- Balance sheet confirming trust and operating separation
- AR aging by client with flagged overdue accounts
- Delivered by the 10th
Practice Area Profitability Summary
A breakdown of revenue, direct cost, and net margin by practice area and attorney — so leadership can see exactly where the firm makes money and where it does not.
- Revenue and cost per practice area for the month
- Attorney-level origination and billing activity
- Month-over-month profitability trend per group
- Annually
CPA-Ready Year-End Package
At year end, your CPA receives a complete, organized financial package with everything they need to prepare your firm's taxes accurately and efficiently — with no back-and-forth for missing records.
- Full-year P&L and balance sheet for CPA review
- Supporting transaction detail and schedules included
- 1099 vendor classification and preparation support
Works With Your Stack
We work inside the software you already have.
No migration, no disruption. We connect directly to your existing practice management and accounting platforms — typically configured within 48 hours of onboarding, with no data entry required on your end.
What Attorneys Say
From firm leaders who finally know their numbers.
Common Questions
Financial Reports & vCFO — answered plainly.
Ethnum produces monthly profit and loss statements, balance sheets, cash flow reports, accounts receivable aging, partner distribution summaries, and practice area profitability breakdowns — all built specifically for law firms using legal-specific chart of accounts and revenue recognition standards.
A virtual CFO provides board-level financial insight without the cost of a full-time hire. For law firms, this means reviewing your monthly financials, flagging trends before they become problems, advising on cash flow and working capital, guiding partner compensation decisions, and helping leadership make data-driven choices about hiring, pricing, and growth.
Law firm financials require strict trust-to-operating separation, revenue recognition tied to matter billing cycles rather than invoice dates, practice area and attorney-level profitability tracking, and partner draw and capital account management. A general bookkeeper using standard small business templates will not capture these correctly.
Yes. Ethnum delivers reports formatted specifically for CPA handoff — including a complete year-end package with all supporting detail your CPA needs to file accurately and efficiently. Many Ethnum clients report that their CPA preparation fees decreased after switching because the records arrived organized and complete.
Typically yes — accurate financial reports depend on accurate, current bookkeeping. Most clients engage Ethnum for both legal bookkeeping and financial reporting as a combined monthly package. If you already have a bookkeeper and only need reporting and vCFO advisory, contact us to discuss working from your existing records.
Pricing depends on your firm's size, the number of practice areas tracked, and whether vCFO advisory is included. Most solo and small firm engagements range from $600–$1,800/month for combined bookkeeping and reporting — typically 60–70% less than a comparable in-house controller. Schedule a call for a firm-specific quote.
Ready to know your numbers — and lead your firm with confidence?
Schedule a free 20-minute discovery call. We’ll review your current financial reporting setup, identify exactly what’s missing, and show you what Ethnum’s reporting will look like for your firm — with no obligation.