Fractional Accounting Services
For Law Firms
The A Team's Law Firm Practice Group
Fractional accounting services offer a strategic solution for law firms facing the complexities of financial management in a demanding legal environment. These services provide access to highly skilled CFOs, Controllers, Bookkeepers, and Accounting Software Solutions Professionals on an outsourced or project basis, allowing firms to access financial expertise without the commitment or cost of a full-time hire. This flexible arrangement is ideal for addressing the intricacies and management of trust accounts, pass-through expenses, and third-party billing so that law firms can maintain rigorous financial oversight and compliance while optimizing their bottom line.
Law Firm Fractional
CFO Services
How We Can Help You
Grow and Prosper
Grow and Prosper
Our experienced Fractional CFOs provide strategic financial planning, including budget management, financial forecasting, and risk analysis, tailored specifically to the needs of the legal sector. Additionally, they support improved decision-making through data-driven insights and performance metrics. This helps firms optimize cash flow, manage complex client engagements, and plan for long-term growth. With their deep understanding of the financial operations and strategic planning needs of law firms, Fractional CFOs help navigate financial challenges and seize opportunities for growth and future success.
Compensation Modeling
Lateral Partner Acquisition Modeling
Budgeting: Overhead & Production + Originations
Accounts Receivable Collection Best Practices
ERP Software Conversions
Analytics
Timekeeping Best Practices
Billing Best Practices
Managing Partner & Executive Committee Advisory
Minimization of Phantom Income
Recommended Accounting Software for Law Firms
Accounting plays a crucial role in all businesses, and law firms are no exception. There are many types of accounting software on the market, some with functions specific to law firms. It is often a confusing choice if you are not a tech professional.
Our experienced Team of Accounting Software Solutions Professionals assist Law Firms in choosing software that will streamline their processes and help their businesses run more efficiently. We also provide guidance on optimizing the law firm’s current systems, boosting both productivity and overall functionality.
Below are some of The A Team’s recommendations for software that will enhance Law Firm operations and enable a more strategic approach to the practice.
ERP
- LMS (SurePoint)
- Aderant
- Bill for Time
- Prolaw
- QuickBooks Desktop
- QuickBooks Online
- Practice Panther
- Iridium (dashboards and reporting)
- Clio
Expense & Bill Pay
- Expensify
- Fyle
- Ramp
- Concur
- Bill.com
Timekeeping
- Bill for Time
- Harvest
- QuickBooks Time
Records Management
- Worldox
- IManage
- Filesite
Common Financial Challenges
Faced By Law Firms
Managing Trust Accounts
One of the most critical financial responsibilities of a law firm is the management of client trust accounts. These accounts are essential for holding client funds separately from the firm’s assets and must be handled with strict compliance to legal and ethical standards.
Challenges In Trust Account Management
- Accuracy: Mistakes in trust accounting can lead to client mistrust, legal penalties, and disbarment. It is critical to maintain precise records and propely account for each transaction.
- Maintaining Compliance: Regulatory requirements for trust accounts vary by state and change frequently. This necessitates careful monitoring and adaptation.
- Preventing Commingling: Firms must strictly segregate client funds from firm funds. This requires establishing internal controls to monitor and prevent commingling and misuse of funds.
Role of Fractional Accounting Services in Trust Account Management
- Regular Audits and Reconciliations: Auditing and reconciling trust accounts to check for errors or inconsistencies reduces the risk of errors and fraud.
- Implementing and Maintaining Accounting Systems: Establishing or improving existing trust management accounting systems, and including automated safeguards, significantly reduces the risk of errors and mismanagement.
Pass-Through Expenses
It is essential to carefully manage pass-through expenses so that they are accurately recorded and timely billed.
Challenges in Managing Pass-Through Expenses
- Accurate Tracking and Client Billing: Implement systems to track these expenses accurately, making sure they are documented correctly in client bills. Without tracking systems, pass-through expenses can get overlooked or not properly recorded, leading to billing errors and cash flow issues. Our accounting professionals will implement systems to accurately track pass-through expenses so that they can be properly documented in client billing.
- Financial Reporting: Accurate financial reporting requires that all pass-through expenses provide clear and detailed explanations and are correctly categorized and recorded for tax and compliance purposes.
Role of Fractional Accounting Services in Pass-Through Expenses
- Systems Implementation: Implement robust expense tracking and reporting systems tailored to the unique needs of each law firm.
- Enhanced Reporting: Provide detailed reporting on all expenses so that they are clearly and accurately reflected in financial statements and client invoices.
- Client Relations: By providing the data for transparent and accurate billing, Fractional Accountants help maintain and enhance client trust and satisfaction.
Overseeing Third-Party Billing
The task of invoicing entities other than clients, such as insurance companies or other corporate entities, can be complex and time-consuming.
Challenges in Third-Party Billing
- Diverse Requirements: Each third-party likely has unique billing requirements, including formats, details, and timelines for invoices.
- Dispute Resolution: Billing disputes with third parties can be complex, potentially involving negotiations or adjustments to meet specific terms or conditions.
- Cash Flow Management: Delays in third-party payments significantly impact a firm’s cash flow. These payments require careful monitoring and management.
Role of Fractional Accounting Services in Third-Party Billing
- Customization and Adaptation: Adapt billing processes to meet the specific needs of various third parties thereby reducing errors and delays.
- Managing Disputes: Assist in managing and resolving billing disputes.
- Financial Oversight: Oversee the billing process and timely follow-up on payments to establish a healthy cash flow.
Contact us to learn more about how
The A Team can help your law firm
The A Team's
Outsourced
Accounting Services
Outsourced Controllers
The A Team offers Outsourced Controllers who specialize in addressing the financial challenges faced by law firms and provide tailored oversight and management of the firm’s accounting functions. Our team focuses on optimizing your firm’s financial health through detailed financial reporting, effective internal controls, and efficient cash flow management. For law firms, where precise financial tracking and compliance are crucial, our Outsourced Controllers provide financial support that follows industry standards and regulatory requirements. They also play a key role in budgeting and financial planning, helping firms to identify cost-saving opportunities and improve profitability. By managing financial operations effectively, our Outsourced Controllers enable law firm partners to focus on client service and business development rather than complex financial details.
Outsourced Bookkeepers
Our Outsourced Bookkeepers meticulously organize and maintain up-to-date financial records. By providing clear, accurate financial statements, they offer a transparent view of your firm’s financial activities. This detailed reporting provides management with the tools they need to monitor financial performance, identify trends, and make informed decisions about resource allocation and strategic planning.
Outsourced Accounting Software Solutions Professionals
A Team’s Accounting Software Solutions Professionals work with law firms to streamline operations and enhance compliance. They offer software solutions that facilitate precise time tracking and billing, manage client funds through trust accounting, and automate routine administrative tasks such as invoicing and financial updates. This software also enhances expense management by integrating client data. This allows firms to maintain comprehensive records and provides robust financial reporting tools that help firms understand their financial health.
Executive Recruiting Services
At The A Team, we understand law firms. We appreciate that your firm needs financial employees who not only excel in accounting, but also possess the discretion and integrity essential in the legal environment. Should you wish to hire accounting professionals to augment your existing team, or to build a new in-house team, our targeted recruitment strategy will support you in building a strong, effective team that can navigate complex accounting challenges. By leveraging our extensive networks and our deep understanding of both accounting and legal industry requirements, our recruiting professionals match law firms with candidates who excel in accounting, understand the nuances of legal finances, and align with the firm’s culture and values. We provide candidates who will have the appropriate skills and will fit your culture.
It is so important for small, growing businesses to have access to high level financial expertise at all stages of growth. The Outsourced CFO model offered the value and flexibility we needed while allowing us, at our own pace, to grow to the next level of hiring a full-time CFO.
Alan Tarter, Managing Partner
Tarter, Krinsky & Drogin
Meet The A Team:
LAW FIRM PRACTICE GROUP
Meet The A Team:
LAW FIRM PRACTICE GROUP
Tedd Drattell
Chair
Tedd’s take-charge attitude combined with his extensive background in operations and finance – both in the private and public sectors – serve him well as he leads The A Team’s growth and success. Tedd’s boundless energy and enthusiasm is not confined to his work. He also enjoys exercising daily, whether it be running, lifting, or spinning. He and his wife have shared the same personal trainer for several years and have the muscles to prove it! Travel and wine are also passions that Tedd and his wife share. They recently enjoyed a visit to the Tuscany region of Italy and hope to travel and “sip” all over the world.
Racheal Smith
Senior Controller
Racheal loves to make others laugh and always tries to find the positive in every situation. You will often find Racheal participating in fundraisers for non-profits, including 5k walks for any type of cancer or anything to do with children’s hospitals. Racheal also enjoys volunteering for her son’s sports and school activities. Racheal is resilient and ambitious, and has a talent for overcoming obstacles. A good mentor, Racheal enjoys helping colleagues and clients learn new skills and efficient techniques for getting the job done.
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