Turn Annual Legal Budget Planning into a Strategic Advantage

Annual legal budget planning is not only about forecasting revenue and expenses, but also about positioning the legal department as a strategic business partner. In a recent Brightflag interview, Marqeta’s Elizabeth Miller, a financial analyst turned legal ops leader, provided a data-driven approach to building credible, defensible budgets that align with enterprise goals.

Miller emphasized that strong annual budget planning begins months before the fiscal year with early collaboration among legal, finance, IT, human resources, and business units. Initiating budget conversations in late summer ensures that all year-to-date spending is captured accurately and forecasts reflect actual operational needs. 

“You should have a decent draft budget that has been reviewed and revised with your leaders by October,” said Miller. “That said, you really need to have ongoing conversations about annual planning throughout the year with all of your practice leaders and stakeholders to communicate and socialize any major changes.”

A modern e-billing platform, Miller noted, is indispensable for turning historical spend data into actionable insights. These tools enable departments to analyze spend trends, matter costs, staffing efficiency, and firm performance, all critical for aligning resources with strategy. By pairing spend transparency with evidence of return on investment (ROI), legal leaders can justify technology investments and reinforce their value to the business.

Miller also warned that even the best-laid budgets can face surprises, ranging from litigation spikes to company-wide cuts. The key is to build contingency plans and maintain open lines of communication that allow legal ops to pivot intelligently without jeopardizing the company’s objectives. “Keep in mind, nobody expects legal to adhere to the exact budget laid out during annual planning. Budgets are living documents,” said Miller.

Miller’s advice for new legal ops professionals about annual legal budget planning is simple yet vital: be transparent, data-driven, and proactive. Legal ops can’t live in a silo: it needs to stay agile, informed, and connected with the business.