Client: Law firm and its partners

Client's Goals: Improve financial reporting, case pricing structures, and fee metrics.

Our Team's Role: Evaluation of the law firm’s internal accounting and reporting processes and making recommendations for improved efficiency.

A law firm’s partners and chief financial officer were experiencing issues getting accurate, timely financial information due to inefficient accounting processes, outdated technology, and a lack of specialized resources. These challenges hindered the firm’s growth and led to missed and inaccurate billings and poor tax planning. The in-house accounting team was working with outdated technology and had no formal accounting workflow processes. Existing processes were done manually, which caused significant delays in regulatory reporting and decision making. Their books needed to be cleaned up significantly and processes needed to be developed in order for the firm to grow successfully.

Challenges

• Difficulty setting up accounting software and billing system integrations between front end, back-end, and accounting systems.
• Manual processes resulting in inaccurate and incomplete data, significant delays to end close times and regulatory reporting requirements, and a lack of insight into operational and other financial metrics.
• Cash flow deficits due to poor case pricing structures and a lack of visibility into client fee models and gross margins by case.

Citrin Cooperman's Approach

• Provided initial assessment of internal accounting and reporting processes and made recommendations and a roadmap for improving key process areas, including responsibilities and oversight controls.
• Established systems, policies, and delivery expectations.
• Onboarded the team and established ongoing operational, weekly end-close, and monthly end-close procedures.
• Developed reporting packages and key performance indicators (KPIs) tailored to the firm’s needs.

Results

• Fully integrated front-end and back-end systems that are compatible with the firm’s enterprise resource planning (ERP) system.
• Accurate and timely week-end and month-end close.
• Access to real-time operational and other financial metrics in addition to decision support tools to give management proper financial insight.
• Ability to generate profitability data, segment cash flow and pricing structures, and increase visibility into various client fee models and gross margins by case.