Budgeting is not about bean counting. It's about conversation.
Many lawyers are uncomfortable with numbers. Some went to law school because they didn't think they would be able to handle the quantitative material that business school requires. I, for one, didn't understand calculus until I took it for the third time, at age 40.
No, I'm not a mathemathical masochist. I just kept tackling it because I don't like barriers that I believe I should be able to overcome. I ultimately learned that math is as much about understanding that there are different approaches to solving a problem, as it is about finding the "right answer."
Legal budgeting is like this too.
There is no one right answer, although there are several workable approaches. Each is based on asking the right questions, making proper assumptions, and applying these elements to a model.
Seasoned lawyers have the skills to work with budgeting models. It's similar to crafting the theory of a case, presenting facts to a jury, or establishing a negotiating strategy for a transaction. You need to think about client and law firm goals, how the work will be done, and how a matter will be staffed.
The need for transparency and disclosure are the same, regardless of whether you are the provider or recipient of legal services. You will need some basic tools - what I call "algebra for lawyers" that show how to construct a budget model; knowledge of how to link spreadsheets in a workbook; and the willingness to learn some management accounting vocabulary, like "cost driver." That starts with having the right conversations, before taking out the calculator...or the beans.
