Financial Reporting Systems Development

We help create systems to report the financial information the equity group needs.

For many small firms, the financial reporting system consists of checking the daily bank balance or bank activity for an idea of expenses. These same firms also go through the painstaking process at tax time to pull together all their financial details for their CPA. For many, this is the extent of their financial reporting process.

Others may also review accounts receivable, work in progress, billable hours and some other timekeeper statistics, and maybe an income statement. Often, the financial reporting system relies on the capability of in-house staff or the preference of the managing partner.

A smaller number of firms have sophisticated financial reporting processes that typically inform on a monthly basis. Relatively few have any reliable real-time reporting systems or forecasting tools despite having financial software that could possibly provide these data.

Regardless of where you fall on this spectrum, we can help improve your financial reporting systems, create policies and procedures to ensure the reported data are accurate, and build an effective forecasting process.

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Benefits

What can you can gain from a better financial reporting system help and what can PerformLaw do for you?

The Process

How does a Financial Reporting Systems Development engagement work?

Resources

Where can I learn more about the topics I might want advice about?

Benefits

The confidence of knowing you will receive knowledgeable feedback and advice. Clients who engage us to improve their financial reporting systems get objective, experienced, and practical advice about the kind of financial data that are important. We learn about your operational cycle, assess the ability of your systems and staff to create the necessary information, and create an implementation plan.

The ability to streamline the process steps and leave more time for strategic considerations. Use of our tools, templates, proven processes, and management expertise are included in the engagement. We provide our clients with the analysis, tools, and advice to make good decisions quickly, which leaves more time to consider the strategic goals of the firm.

A solution for the long term. All our engagements are designed to raise the level of in-house competence and promote self-sufficiency. Wherever possible, we try to create repeatable processes and recommended policies.

The ability to continue to focus on your daily responsibilities while we focus on the analysis and process. Successful lawyers are busy and must focus on client priorities. We can help you and your management keep the process moving and orderly.

What PerformLaw can do for you:

  • We help clarify the goals and expectations of the financial reporting system.
  • We provide easy to understand analysis and processes tools
  • We provide supporting policies, guidelines and explanations to ensure the system’s long-term viability.
  • We help identify and address issues quickly.
  • We are available when clients need us; before, during and after an engagement.

THE PROCESS

CASH

Daily Cash Report

Monthly Cash Flow Statement

EQUITY

Changes in Monthly Capital

Owners Capital Account Reconciliation

Sources and Uses of Capital

BILLING ASSETS

Accounts Receivable Monthly Summaries

Work In Progress Monthly Summaries

Monthly Write Off Summary

DEBT

Long Term Notes Payable

Line of Credit Balance Summary

Accounts and Bills Due

INCOME AND EXPENSES (YTD, PRIOR PERIOD, DOLLARS AND PERCENTAGES)

Total Fee Income

Cash Fees, Billed Fees, Production

Payroll and Benefits

Facility Cost

Equipment and Practice Aids

Practice Development

General and Admin Expense

PROFITABILITY

Timekeeper Profitability

Overhead Analysis - Per Lawyer

By Firm/ Section

CLIENTS METRICS

Client Rankings (Collected, Billed, Worked)

Historical Trends

Monthly Summary Open/ Closed Files by Client

Historical Trends

Monthly Summary Open/ Closed Files by Lawyer

Historical Trends

FINANCIAL KEY PERFORMANCE INDICATORS (KPI's)

Revenue

Firm

Per Employee

Per Practice Area

Per Attorney/ Timekeeper

Per Client

Profit

Firm

Per Practice Area

Per Attorney/ Timekeeper

Per Client

Billing Realization Rate

Firm

Per Practice Area

Per Attorney/ Timekeeper

Per Client

Collection Realization Rate

Firm

Per Practice Area

Per Attorney/ Timekeeper

Per Client

Overhead

Firm

Per Employee

Per Practice Area

Per Attorney/ Timekeeper

FORECASTING MODELS AND TOOLS

Create forecasting model

Revenue forecasting

  • Hourly forecast
    • Worked, billing and collection assumptions
  • Case settlements and timing

Projected cost needs

  • Fixed
  • Variable

Projected cash and capital needs

  • Operating cash
  • Client advances
  • Infrastructure investments
  • Equity owner payments

FINANCIAL INFORMATION COMMUNICATION METHODS

Dashboards and real time monitoring

Periodic reporting

On demand reporting

POLICY AND PROCEDURE DEVELOPMENT

Time entry and billing rules

Settlement stage updating

Accounting detail posting

Payroll posting

Other not accounts payable cost data

Real time payments posting

Real time cash receipts posting

Real time cash movements

Resources

NOT SURE WHERE TO BEGIN?

Here are some of our most helpful resources to learn more about ..........

Knowledge Base

BLOG

Resources