All evidence points to continuing change for law firms. Increasing revenue and reducing costs are top concerns. Budget-conscious clients are negotiating reduced billing rates. Generalist practices are giving way to specialization — driving up costs for talent and technical capabilities. Forward thinking firms are making moves now to protect their bottom-line and strengthen their competitive position. CohnReznick’s Law Firm Practice is the partner who will bring valuable objectivity and industry intelligence to the table, whether you are retooling operating procedures, acquiring another firm, or expanding your footprint.
With long-established experience serving the accounting, tax, and business advisory needs of law firms, we understand where the industry is now, and where it’s going in the not-too-distant future.
BROAD INDUSTRY EXPERTISE
If you’ve focused your practice in a particular industry, there’s a good chance we have direct experience in it. Our firm serves dozens of diverse global industries. In addition, we bring our integrated team of audit, tax, and consulting professionals to the table whenever you need specialized assurance and tax needs.
AN EXPANSE OF CLIENT TYPES
CohnReznick works with attorneys, law firm administrators, and CFOs to help them boost their practice profitability. Building on experience with more than 100 law firms of varying sizes and scope, we tailor our recommendations and guidance to the specifics of your situation.
We are regularly called upon to share our accounting and business insights through national and regional associations, events and industry groups, and by hosting managing partner roundtables.
- New Jersey Association of Legal Administrators
- New York City Association of Legal Administrators
- Connecticut Association of Legal Administrators – Nutmeg Chapter
Your firm and its business goals are the basis for our holistic approach. We integrate audit, accounting, tax, and advisory services to address financial operations review, fee structures, compensation programs, and plans for growth and/or mergers. Our services specific to law firms include:
PRACTICE AND PARTNERSHIP PROFITABILITY ANALYSIS
Law firm profitability is generally measured through billable hours. Using competitive benchmarking and other analytical tools, we assess your overall practice and individual lawyers to identify opportunities to boost billable hours and profitability. Since partner compensation also impacts your firm's profits, we evaluate current compensation plans for sustainability and alignment with firm goals, recommending and implementing areas of improvement.
SPECIALIZED TAX PRACTICE
Adhering to sound tax strategies is especially critical for law firms. From comprehensive tax planning and compliance to advising on state nexus issues, we work to reduce firm tax obligations, ensure accurate state revenue reporting, and vigorously defend our clients’ tax positions — while remaining in full compliance with all laws.
LAW FIRM MERGERS AND ACQUISITIONS SUPPORT
For firms seeking growth through mergers or the acquisition of similar firms, we can identify merger and lateral candidates, conduct valuations, assist in due diligence, and negotiate contracts. We also offer related services including lateral combinations, comparative operating policies, and deal economic and pre/post-merger management consulting.
Settlement trusts are facing the call for increased transparency by federal and state policymakers, lawyers, judges, and litigants concerned about the compensation of claimants, as well as the performance of the settlement trust’s claims processing system. We advise on GAAP and special-purpose financial reporting; audit IT controls; address complicated trust taxation matters, evaluate processes for internal controls, claims reporting, and trust distribution; allocate costs from shared service processing centers; and assist in data-mining and recalculating awards derived from claims processing systems.
A ONE STOP SHOP FOR BUSINESS ASSETS – AND PERSONAL WEALTH
Managing personal wealth is often inextricably tied to managing your firm. We provide a wide range of private client services for owners, partners, and their families as they manage the assets and personal wealth they’ve amassed in their legal career or transition their firms at retirement.