Numbers are data. What any legal practice needs from his or her CPA is information. In many situations, the numbers are information. In business situations, most numbers are data – the value a legal practice CPA brings to the legal practice is applying his or her knowledge, experience and judgment to turn data into information that is the basis for decision-making.
Our Legal Practice Accounting and CPA services are divided in to two categories – nontraditional and traditional:
Nontraditional Legal Practice Accounting Services –CFO Services
CFO Services begins with the evaluation of the overall vision, mission, goals, and strategies of the legal practice. Particular emphasis are placed on financial metrics, cash flow management, charges, collections, adjustments, and other write offs. Is the practice growing or are the attorneys working harder to maintain the same income level?
Financial Percentages and Ratios: Ongoing review of the practice’s gross collection percentage, net collection percentage, and accounts receivable ratio or days in A/R. Assess whether all these statistics are reasonable for the practice’s particular legal specialty.
Overhead Review: Compare each overhead category to the same overhead category from the prior year. Identify and question significant changes. In addition, decide how the practice’s overall overhead can be reduced in the upcoming year.
Cost Accounting: Every practice needs to know what it costs to render a particular service. These calculations should be prepared at least annually.
Accounts Receivable: Conduct an in-depth analysis of a current aging of the accounts receivable, with emphasis on payer aging’s.
Client Trust Fund Accounting: We employ legal-specific accounting software to help our clients avoid issues associated with client’s trust fund accounting. We also help our clients prevent the following pitfalls:
Traditional Legal Practice Accounting Services
Compilation: A compilation of financial statements is defined as presenting in the form of financial statements information that is the representation of management (owners) without undertaking to express any assurance on the statements.
Independent Review of Internally Prepared Financials: For legal practices who prepare their own financial statements internally, it is often a good idea to have them independently reviewed by a CPA. This review can be conducted on a monthly, quarterly, semi-annual, or annual basis. You must make sure they are receiving accurate and reliable financial information.
Financial Forecasts and Projections: A legal practice should prepare a financial forecast for many reasons: [a] to budget income and expenses for the upcoming year, [b] for general business planning purposes, [c] to aid in the valuation of the entity, or [d] to fulfill a lender’s requirement for granting a loan. The difference between a forecast and a projection is that in a forecast, all the assumptions are expected to occur, whereas in a projection at least one assumption is not necessarily expected to occur and may be improbable. In other words, a forecast presents management’s expectations; a projection presents management’s expectations based on a ‘what if’ situation.
Personal Financial Statements: There may be a time when an attorney needs to have a prepared personal financial statement. Personal financial statements are sometimes needed when obtaining a bank loan, for tax or estate planning, or during the preparation of a personal financial plan.
As a CPA dedicated to legal practices, my goal is to minimize your tax burden and make sure there are no year-end tax surprises. My tax services include the following:
PAMC is a local accounting and financial advisory firm. Our business is problem solving; and our craft is business value building. Our teams and experts are the trusted advisors to small and medium size legal practices, government units, not-for-profit organizations and leading business institutions. We are passionate, driven, and focused to our mission.
Our Vision & Mission Statement
Our vision is to achieve national recognition and sustain a leading place as the premier accounting and financial consulting firm in the United States.
We are dedicated to the provision of exceptional accounting, tax, and financial solutions to meet our client’s constant business needs, help our clients attain business growth, make distinctive and value driven decision, and compete effectively and efficiently in the business arena.
Products and Services
Our core competencies are:
Our Value Proposition
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