“The accounting profession historically has been like taking a trip with an atlas that’s 10 years out of date. However, today, what we can do with modern accounting and advisory services is much like the Waze app or Google Maps; you're getting instantaneous data that will tell you ‘Up ahead there's a roadblock and here's a workaround.’ This real-time info keeps you on track with your financial forecast. You can't make any business decisions on historical information; you must have current information and be able to look forward so that you can make good decisions and stay on track to reach your goals.” –John Scott

The finer details of this episode:

• Importance of thought leadership in the accounting and legal professions
• John's experience with a law firms’ growth and scaling based on data and metrics
• Discussion and insights from John's book, “Judicial Dollars and Cents,” on understanding cash needs and working capital for businesses, including law firms
• Unique elements of serving law firms and the complexities of partner compensation plans
• The significance of data-driven decision-making in business management

Episode resources:

• Summit Virtual CFO by Anders website: https://www.summitcpa.net/
• If you have questions or would like to be a guest on the show, email us at [email protected]
• Check out the Virtual CFO Playbook Course: https://vcfoplaybook.summitcpa.net/
• Get the book: https://home.virtualcfo.cpa/johnscott

Timestamps: 

The Introduction (00:00:00)

Introduction to the podcast and its mission.

Discussing Thought Leadership and Writing a Book (00:00:22)

Adam and Tom discuss the value of thought leadership and the process of writing a book.

John's Background and Experience (00:01:45)

John Scott introduces himself and discusses his experience working with law firms and the collaboration between Anders and Summit.

Scaling a Law Firm (00:02:58)

John shares a story of an entrepreneurial attorney scaling his business and the focus on data and metrics.

Inspiration for Writing the Book (00:04:06)

John explains the inspiration behind his book, “Judicial Dollars and Cents,” and the need to provide guidance for attorneys in managing their finances.

Unique Elements of Serving Law Firms (00:07:32)

Discussion on the unique financial aspects of law firms, including trust accounts and fee structures.

Forecasting and Real-Time Data (00:05:55)

John uses an analogy to emphasize the importance of real-time data in financial forecasting and decision making.

Key Metrics and Client Experience (00:12:13)

John discusses the importance of key metrics, staff retention, and client experience in law firms.

Availability of the Book (00:13:58)

John confirms the availability of the book.

Challenges of Writing a Book (00:18:49)

John shares the challenges and the process of organizing the content of the book.

Advice for Aspiring Authors (00:19:58)

John offers advice for those aspiring to write a book.

These are the timestamps covered in the podcast episode transcription segment, along with the titles for each topic.

Dictation and Writing Process (00:20:03)

John discusses using dictation software and his process for capturing thoughts and organizing them for writing.

Involving Others in the Writing Process (00:20:59)

John explains how he involved others to critique, develop thoughts, and help with grammar in the writing process.

Book Content and Editing (00:23:15)

The discussion covers the challenges of maintaining authenticity while editing and refining the book's content.

Importance of Cash Management (00:23:58)

The importance of understanding cash needs and reconciling accounts for businesses, including law firms, is emphasized.

Meeting Cadence and Financial Review (00:28:23)

The frequency and focus of financial meetings with law firms are discussed, highlighting the importance of reviewing financial statements and forecasts.

Compensation Models in Law Firms (00:31:54)

John shares insights on partner compensation plans and the importance of aligning individual and organizational goals in law firms.

Suitability of Services for Law Firms (00:36:30)

The discussion focuses on the ideal size of law firms for external financial services and the benefits of specialized niche expertise.

Trusting Data and Decision Making (00:39:40)

Discussion on the importance of trusting data for making quick decisions and the need for proper implementation.

Thought Leadership and Book Promotion (00:40:26)

Exploration of the concept of thought leadership, book promotion, and the value of intentional forecasting for small businesses.

Excitement for Book Release (00:41:46)

John's excitement for the release of his book and the relevance of the content, with a humorous exchange about his age.

Accountants' Behavior at a Conference (00:42:12)

Anecdote about accountants' reluctance to accept a free football signed by Rudy, with humorous commentary on their behavior.

Promotion and Support for the Book (00:44:36)

Acknowledgment of the book's potential value and support for its promotion, expressing anticipation for its release.