Legal & Professional
Focus on business matters.
Every attorney in private practice is under pressure to be a good businessperson, whether they want to or not. Partner-level attorneys are responsible for finding and enrolling clients, managing client matters at each step of the way, providing accurate billing – and collecting on those bills.
Managing partners have an even more robust role in running the business, including managing overhead of all descriptions, ensuring compliance with ethical, financial and tax standards and regulations, evaluating and rewarding performance of other members of the firm and planning for sustainable growth. Even the greenest associate has some responsibility to contribute to the overall business health of the practice. There’s just one big problem: law school doesn’t really prepare anyone to run a business. For that, you need an accounting team that understands intimately how the business of law works.
Key Considerations
Compensation.
Law firms typically use complicated compensation structures, starting with “waterfall” profit sharing and moving on to origination fees and other nuances. Accurate information input, flawless calculations and detailed reporting are essential.
Cash flow.
The expenses of running a firm are relatively predictable, but income can be harder to anticipate. Complex billing structures with multiple hourly rates, the need to recoup expenses from clients and the length of time clients generally take to pay can all put a real strain on a firm’s cash flow. This can be further complicated if the practice takes matters on contingency.
Systems.
Law firms typically have detailed document flow, matter management and client relationship systems, but their formal financial systems may be limited to those devoted to billing. Solid financial and accounting systems produce data that facilitate tax
compliance, enable expense management and support decision-making.
At Singer & Falk, we understand that financial and accounting matters are essential for building and growing successful law firms and legal careers.
We also understand that your billable time is too precious to spend poring over numbers and trying to figure out what they mean. When we work with legal clients, our approach is concise, proactive and personalized. We help legal clients meticulously document and organize their compensation, manage fluctuations in cash flow, make critical business decisions such as those around office space, insurance and employee benefits, and ensure compliance with applicable tax laws. We regularly answer “what if” questions from clients who want to explore alternatives in detail, while presenting well-grounded options for those who simply want to make and execute decisions.
Contact us for more evidence of how a more robust accounting relationship can help you build the practice of your dreams.
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