Client: Commercial Litigation Firm
Service Provider: PL Accounting Services
Our client, a boutique litigation law firm with offices across multiple states, initially reached out for basic QuickBooks assistance. What began as a straightforward inquiry soon unveiled significant financial discrepancies, transforming this engagement into a comprehensive accounting project.
Challenge
Upon our preliminary review of the law firm’s QuickBooks data, we uncovered a substantial discrepancy in their trust fund accounts. As we delved deeper, more issues surfaced, including complications with expense report collections, tracking retainers, and observing negative balances on their financial statements. Each problem revealed led to the next, likened to opening a can of worms, indicating systemic issues in their accounting practices.
Our Approach
Recognizing the severity of the issues and their potential impact on the firm’s operations, we proposed a multi-faceted approach:
- Full Reconciliation of Trust Fund Accounts: We conducted a thorough audit and reconciliation of all trust fund accounts to ensure compliance and accuracy.
- Training for the Controller: We trained the firm’s controller on best practices for managing trust accounts, ensuring they could independently handle these crucial tasks going forward.
- Implementation of Third-Party Software: To address the delays in expense reporting and billing, we implemented a third-party software solution that streamlined the collection and processing of expense reports.
- Regular Accounting Support: We established an ongoing support system for the firm, providing monthly reconciliations and regular reviews of their QuickBooks data to prevent future discrepancies.
Outcome
As a result of our comprehensive approach, the law firm now enjoys a fully reconciled and compliant accounting system. The improvements in expense report management have led to timelier billing, enhancing their cash flow and financial stability. Our intervention has not only resolved their immediate accounting challenges but has also fostered a lasting partnership, with the firm relying on our expertise for ad-hoc accounting support and continuous financial oversight. This engagement highlights our commitment to transforming accounting challenges into opportunities for growth and stability.
