Set Your Firm Up for Success: An EOFY Guide for Lawyers

The End of Financial Year (EOFY) is a great opportunity for law firms to reset, refresh, and plan for a stronger, more profitable year ahead. For many lawyers, EOFY can feel overwhelming, with trust account reconciliations, billing deadlines, and compliance requirements stacking up. But firms that approach this season strategically can gain a clear financial picture of where they stand today — and set themselves up for even greater success tomorrow.

Here’s what you need to be thinking about as you close out the financial year and prepare for the next.

Reflect on Your Financial Performance

Before diving into the paperwork, take a moment to look back at the year that was. How profitable was your practice? Which matters were most successful — not just in revenue, but in efficiency and client satisfaction?

Review your billing habits and collections: Were invoices sent promptly? Were payments chased effectively? Many law firms leave revenue on the table simply by delaying invoicing or failing to capture all billable time. Taking stock now helps you identify patterns that can be improved in the new year.

EOFY is also the perfect time to finalise outstanding invoices and reconcile trust accounts, ensuring all reporting requirements are up-to-date ahead of compliance audits.

Lay the Groundwork for a Stronger Financial Year

It’s easy to slip into bad habits as EOFY pressure mounts. One of the most common pitfalls is rushing the billing process — which can lead to errors, write-offs, or client dissatisfaction. Another risk is incomplete time recording, where billable work is forgotten or under-reported because it’s not accurately captured at the time it’s done.

Trust accounting is another area where careful attention matters. Any discrepancies between your trust ledger and client balances can create serious compliance issues — issues that regulators won’t overlook.

By tackling these risks early and methodically, you can reduce stress and protect your firm’s financial health.

 

Refresh Your Pricing and Billing Strategies

EOFY isn’t just about closing the books — it’s about opening the next chapter. As you review your financials, ask yourself: Does your pricing model still serve your business goals? Are you capturing the true value of the work you deliver?

Many firms use this time to adjust hourly rates, introduce fixed-fee packages, or rethink how they present billing to clients. Clients increasingly value predictability and transparency — and your pricing strategy should reflect that.

Updating your rates or adopting a more client-centric billing approach can have a powerful impact on profitability in the year ahead.

Invest in Technology to Work Smarter

Manual processes, disconnected spreadsheets, and paper-based billing might have gotten you this far — but they can hold your firm back as you grow. EOFY is an ideal moment to review your tech stack and invest in tools that save time, reduce errors, and boost compliance.

Cloud-based legal practice management software like Clio can streamline everything from time recording and billing to trust accounting and financial reporting. Automating key processes not only helps you close the current financial year more efficiently, but also lays a stronger foundation for scalable growth.

With Clio you can set up billing reminders to ensure payments get made, saving you the time and effort to follow up. With Clio’s time recording features you can set up your preferences for billing and ensure you are billing correctly for your time! Clio’s built-in online payments solution gets you paid faster—improving your collection rates and firm efficiency.

Trust accounting has also never been easier than it is with Clio. Clio gives you the peace of mind that every trust transaction is recorded and managed in a compliant manner across ledgers according to industry regulations. Clio’s trust accounting software has been certified by the Law Society of New South Wales as being compliant with the Legal Profession Uniform General Rules 2015.

We published this blog post in April 2025. Last updated: May 6, 2025.

Posted in: Business, Clio