Opening a Law Firm: Five Decisions That Shape Year One

Gökçen Beyazoğlu LL.B.

Chief Product Officer · Attornaid

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What shapes a new law firm's first year is not legal knowledge but the routines put in place at the start. Five decisions should be made before the first file is opened: how files are numbered and retained, how deadlines are tracked from a single source, what a client intake form collects, how billing and collection are followed up, and which work is outsourced. Each of the five takes a few hours to set up while the firm is small; each takes weeks to retrofit once it has grown.

When a firm is being set up, the energy usually goes into premises, the sign on the door and the first client. By the end of the first year, none of those is what wears the firm down. What does is the document that has to be dug out of a stack of accumulated files, the receivables where nobody is sure who pays when, and the time spent trying to remember which stage each matter has reached. The five decisions below are what prevent that.

1. File organisation: numbering and retention

Give every file a number and use that number identically on the physical folder, in the digital folder and in the accounting record. Keep the numbering scheme simple, and never change it.

• A year-based running number is the most durable scheme: 2026-001, 2026-002. Do not try to encode the type of matter; the type changes over time, the number cannot.
• Keep the folder structure fixed. Every file gets the same sub-folders: pleadings, service and notices, evidence, correspondence, financial.
• Write down the file naming rule. Putting the date first makes documents sort themselves: 2026-03-14-statement-of-defence.pdf
• Decide retention at the start. How long closed files are kept, in what form, and who may destroy them. Your bar or professional conduct rules and data protection law (GDPR or its local equivalent) set the minimum; write the firm's own rule down so it is not decided file by file.

Why at the start: Once five hundred files have accumulated, changing the numbering scheme is practically impossible. The old files are never migrated, two schemes live side by side, and every search has to be run in two places.

2. Deadline tracking: the single-source rule

Make one decision about where deadlines are kept, and allow no exceptions. When a paper diary, a phone calendar, a note on the file cover and memory are all in use at once, a missed deadline becomes inevitable.

• Every deadline goes into a single calendar; there is no second place.
• At least one reminder for every deadline, two for critical ones.
• Decide who enters deadlines. In a calendar everyone can write to, nobody does.
• Notices from the court e-filing system are transferred into the calendar on the day they arrive, not when the file is next picked up.
• Court recess and public holidays are reflected in the calendar.

This applies to a solo practice as well. In a single-lawyer firm the belief that you are already keeping track is common. Once the number of open files passes about thirty, memory stops being a reliable system, and the transition happens without anyone noticing.

3. Client intake: what to collect from day one

Information missed at intake is collected later, through repeated phone calls. A standard intake form removes that loss. It also fixes, from the first client onwards, what personal data the firm collects and why, which is what data protection law (GDPR or its local equivalent) expects of it.

Conflict check: Before a new client is accepted, check whether the opposing party is one of your existing clients. The check gets harder as the firm grows; the habit should be set on the first day.

4. Billing and collection

The most common mistake of a new firm is to think about collection when the file closes. The fee agreement should be in writing from the start, and the payment schedule should be set when the file is opened.

• A written fee agreement on every file, without exception.
• Track expenses and advances separately from fees. When client disbursements and firm income are mixed, both sides end up misled.
• Attach the payment schedule to the file, not to a separate ledger.
• Invoice on a fixed rhythm. Issue invoices on the dates agreed in the fee agreement, not when cash runs short. A client who receives invoices on a predictable schedule pays on one.
• Review unpaid receivables monthly. A receivable not looked at monthly has become uncollectable by the time it is looked at annually.

5. What to outsource

In a new firm, doing everything yourself looks economical. Measured against what a lawyer's hour is worth, it usually is not. Three items need a decision at the outset.

On choosing software, one criterion matters more than the others. The software chosen while the firm is small is the hardest decision to reverse once it has grown. Whether the data can be exported looks unimportant on day one and becomes decisive in year three. Run a test export before deciding, and open the file that comes out.

A first-month checklist

• Choose the file numbering scheme and write it down.
• Create the standard folder structure and apply it to the first file.
• Pick one calendar for all deadlines and set the reminder rule.
• Prepare the client intake form.
• Decide how the conflict check is run and who runs it.
• Draft the written fee agreement template, with expenses and advances tracked separately from fees.
• Arrange bookkeeping and tax filing support.
• Test a data export from the chosen software.

Frequently asked questions

What should a new law firm decide first?

The file numbering and retention scheme. The number given to a file must be used identically on the physical folder, in the digital folder and in the accounting record. A simple year-based running sequence (2026-001, 2026-002) is the most durable; do not encode the type of matter in the number, because the type can change over time and the number cannot.

How should deadline tracking be set up in a new firm?

With a single-source rule. Every deadline goes into one calendar, and there is no second place. When a paper diary, a phone calendar and a note on the file cover are used side by side, a missed deadline becomes inevitable. Set at least one reminder for every deadline and two for critical ones, and decide who is responsible for entering them.

Does a solo practice need these systems too?

Yes. In single-lawyer practices the belief that you can keep track of everything yourself is common, but once the number of open files passes about thirty, memory stops being a reliable system, and the transition happens without anyone noticing. Building these routines later, once the firm has grown, also costs far more than building them at the start.

What information should a client intake form collect?

Identity and contact details, a summary of the dispute and its key dates, details of the opposing party, whether another lawyer was previously instructed, a list of the documents the client holds, and a written agreement on fees and expenses. A conflict check, confirming that the opposing party is not an existing client, should also be a habit from the first day.

Which work should a new law firm outsource?

Bookkeeping and tax filings should be outsourced: the cost of error is high and the learning curve is long. For practice management software, choose a ready-made solution; building your own system takes months and cannot be moved. A website and other visibility work depends on the firm's situation, but compliance with your bar or professional conduct rules should be checked first.

What should a new firm look for when choosing practice management software?

Whether the data can be exported. The software chosen while the firm is small is the hardest decision to reverse once it has grown. An export option that looks unimportant on day one becomes decisive in year three. Before deciding, run a test export and open the resulting file to check it.