Accounting Expertise Legal Firms Can Count On

2020 is predicted to be an awesome year with healthy revenue growth steadily expected to rise at a 6% rate which will come close to matching the growth in 2019. Billing rates have risen over the past several years and this trend is expected to continue for this year and next. Collections are a law firms’ greatest challenge as more and more clients are not paying their bills timely. This has created a cash flow problem for many of the larger law firms and will continue to be a problem unless more aggressive collection efforts are taken. Most of the well-established firms are seeing a shortage in up and coming equity partners as this category has declined steadily over the past ten years as founding members are retiring at record numbers.

There is a trend towards in-sourcing of legal work by larger clients. The current cost of in-house council including benefits averages $280,000 per year, compared to companies hiring an outside law firm which may cost up to $840,000.00 per year. The key here is for law firms to control costs in order to keep rates competitive in their local marketplace. Every firm should be comparing rates with their local competition annually. In addition, Firms need to invest in technology and process improvement. These investments will pay huge dividends as they lower costs to clients and provide an exceptional recruiting advantage. With huge competition for the top associates a firm’s number one attracting force is technology that is cutting edge.

No matter whether your law firm is big or small, we have a highly experienced, professional team to assist in achieving your goals. We support law firms in identifying key performance indicators, analyzing performance data, setting and monitoring benchmarks and taking appropriate action to achieve goals.

Over the past thirty five years, we have provided much more than tax and accounting services to our legal firm clients, although accounting is one area where many firms need greater support to improve efficiency and safeguard assets. Possibly the most important need is in the area of legal services, cash management and financial reporting. We consistently review accounts and procedures to help manage legal practices, by strengthening cash receipts and simultaneously controlling cash outflows.

Services to the legal industry

  • Accounting support
    • Accounting and monthly financial statements
    • Time and billing system support
    • Outsourced CFO/Controller/Bookkeeping
  • Audits of financial statements and qualified retirement plans
  • Internal control assessments
  • Alignment of firm strategic objectives and vision/values
  • Annual budgeting/financial forecasting
  • Associate/staff compensation evaluations
  • Benchmarking and key operational analyses
  • Partner compensation plan design
  • Partner conflict resolution
  • Profitability improvement
  • Software selection consulting:
    • Omega
    • Juris
    • TABS
    • Abacus Law
    • Clio
    • Amicus Attorney
    • ProLaw
    • Bill4Time
    • PCLaw
    • QuickBooks
  • Strategic planning
  • Tax planning and return preparation (law firm & partners)
  • Partner compensation disputes
  • Employee retention issues
  • Expense control
  • Maintaining/monitoring trust accounts
  • Maximizing collections
  • Maximization of billable

In addition to the above, we also offer the following law firm-related services:

  • Business Valuations/lost wages computations
  • Litigation and forensic accounting
  • Expert witness services

Get in Touch with Us.