Financial Mastery for Service Firms
Whether you're a law firm, consulting practice, or creative agency, we provide the financial insights you need to maximize billable utilization and profitability.
Billable Rate
Service Firms
Specialized Expertise
Comprehensive accounting, payroll, and tax services tailored to each sub-sector of Professional Services.
📚Bookkeeping
- •Trust Accounting (IOLTA): Maintaining separate ledgers for client funds to ensure no co-mingling with firm operating funds
- •Matter Cost Tracking: Recording Hard Costs (filing fees, court reporters) and Soft Costs (copies, postage) billable to clients
- •Managing retainer advances and client deposits
- •Recording billable vs. non-billable time
🧮Accounting
- •Three-Way Reconciliation: Monthly matching of bank statement, book balance, and individual client trust ledgers (mandatory in most US states)
- •Realization Rate Analysis: Comparing time recorded vs. amount actually collected
- •Partner compensation calculations (origination, management, production credits)
- •Tracking WIP (Work in Progress) by matter and attorney
👥Payroll
- •Managing partner draws vs. associate salaries
- •Processing 1099s for expert witnesses and contract attorneys
- •Handling performance bonuses for paralegals and legal assistants
📄Tax Preparation
- •Managing Section 199A (QBI) deductions for pass-through law firms
- •Specialized treatment of advanced client costs (some deductible, some loans)
- •Multi-state income tax for attorneys licensed in multiple states
⚙️Software Stack
Getting Started
We follow a rigorous methodology to ensure your Professional Services transition is effortless and effective.
Practice Assessment
Review your service model, billing structure, client volume, and existing systems.
Trust/Fiduciary Setup
Establish proper trust account handling and reconciliation procedures (if applicable).
Time & Billing Integration
Connect time tracking and billing systems to accounting platform.
Utilization Framework
Set up reporting for billable hours, utilization rates, and realization metrics.
Ongoing Profitability Analysis
Regular project margin analysis and practice area profitability reporting.
The Professional Services
Advantage
Compliance Expertise
Deep understanding of industry-specific regulations including IOLTA trust accounting, insurance fiduciary duties, and staffing agency requirements.
Billable Hour Tracking
Expert management of time & billing systems, utilization reporting, and realization rate analysis to maximize profitability.
Multi-Entity & Partner Accounting
Handle complex partnership structures, partner compensation calculations, and multi-entity consolidation for growing firms.
Cash Flow Management
Optimize AR collections, manage factoring relationships, and ensure healthy cash flow for service-based businesses with payment lags.
Project-Based Profitability
Detailed project margin analysis helping you identify profitable clients, service lines, and practice areas.
Driving performance through
strategic financial leadership.
Frequently Asked Questions
Detailed answers to the most common questions regarding our Professional Services industrys.