FM 2: Law Firm Accounting (September 9 - October 14, 2025)

Session 2: Financial Management — Interpreting Financial Data & Decision-Making

Do the complexities of financial information and analysis keep you up at night? This interactive online program focuses on budgeting, financial reporting, cash flow analysis, model building, and variance analysis within a law firm.

You will apply the skills gained in the course by interpreting financial statements, calculating and analyzing financial ratios, conducting profit analyses, and comparing financial performance across fiscal years. Instructional methods include case studies, lectures, videos, readings, and assessments.

This session covers essential topics such as automated financial management systems, alternative fee arrangements, financial controls, client matter budgeting, and electronic billing.

In this second session of Financial Management: Law Firm Accounting, you will begin to decode the "Financial Story" and how to use the numbers to guide leadership decisions.

The following is an outline of the topics.

Week 1: The Financial Story

As a Law Firm leader, you must develop two essential skills: reading and effectively communicating financial data effectively. 

By the end of this class, you will be able to:

• Identify financial statements and the stories they tell.
• Communicate financial information to non-financial team members.
• Differentiate between the financial information partners need to know vs. what other staff members require.

Week 2: Managing the Firm Through KPIs

Key Performance Indicators (KPIs) provide measurable insights into a firm’s financial health and operational success.

By the end of this class, you will be able to:

• Explain what KPIs are.
• Create a framework for developing the right KPIs.

Week 3: Forecasting and Planning

Gaining insight into financial data allows firms to look ahead and make informed decisions.

By the end of this class, you will be able to:

• Use the numbers to look forward.
• Model the behavior that impacts results.
• Create a baseline budget.

Week 4: Staffing, Compensation, and Capacity Planning

Compensation, productivity, and capacity planning are essential for a law firm’s long-term growth.

By the end of this class, you will be able to:

• Describe staff and partner compensation plans, including bonus plans and options.
• Measure staff productivity and performance.
• Compute employee ROI calculations.
• Implement capacity planning strategies.

Week 5: Trade-offs and Tough Choices

Sometimes you have to make hard decisions. You can use financial data to provide objective insights when making difficult business decisions.

By the end of this class, you will be able to:

• Identify financial factors in key business decisions
• Gather and analyze relevant financial data
• Apply data and your financial knowledge from this course to identify ways to identify and address financial concerns

Week 6: Tracking and Reporting

Accurate financial tracking and reporting ensure data integrity and informed decision-making.

By the end of this class, you will be able to:

• Identify the roles and responsibilities for financial data integrity.
• Explain best practices for data review.
• Utilize practice management software for tracking financial performance.
• Identify tools for financial reporting and analysis.

Additional Information:

The live lessons will be held on Tuesdays from 1:30-2:30 p.m. Central Time. These lessons will also be recorded for on-demand access.

This course is offered at a cost of $549 for ALA members and $679 for nonmembers, and is available at a discounted rate as a part of a package.

Audience Level

Intermediate

Course Textbook

A textbook is NOT required for this course. All reading materials will be provided.

Cancellation Policy

All cancellations must be made in writing and submitted via email to elearning@alanet.org. The following cancellation fee scales will apply:

• After registration but prior to 50% penalty date: $125 fee
• Four weeks before start of the course: 50% of fee paid
• Two weeks before the start of the course and thereafter: No refund 

Completing both FM 1 and FM 2 courses gives you access to the Legal Management Finance Specialist Certificate Program. 

CLM Credits

Meet minimum course requirements and earn 6 hours of CLM credit. This can take the following forms.

• CLM Application Credit: Organizational Development
• CLM Functional Specialist Credit: Financial Management
• CLM Recertification: Financial Management

Course Requirements

Each course has a start and end date. To receive the course completion certificate and CLM credits, all weekly assignments must be completed and quizzes passed with a score of 70% or higher by the last day of the course.