Why Small Law Firms Need Startup Services, Bookkeeping, and Tax Planning

Running a small law firm is about delivering expert legal advice and serving clients, whether in family law, real estate, or business litigation. However, managing the business side—legal setup, financial tracking, and taxes—can pull you away from practicing law. With over 50 years of combined experience in project management and financial services, we offer tailored startup services, bookkeeping, and tax planning to help small law firm owners like you succeed. Our affordable starter plans—incorporation, basic bookkeeping, bank account, and payroll setup—along with our financial services, keeps your firm organized, compliant, and profitable.

Startup Services: Building a Strong Legal Practice

Small law firms face unique challenges, like managing client trust accounts, billable hours, and professional regulations. Our startup services are designed for your industry:

• Incorporation: We guide you through forming a PLLC or PC to protect personal assets and meet state bar requirements, crucial for attorneys handling client funds or high-stakes cases.
• Basic bookkeeping: Track billable hours, client retainers, and case expenses with cloud-based tools tailored for law firm workflows, ensuring accurate financial records.
• Bank Account Setup: Set up dedicated operating and trust accounts to comply with IOLTA (Interest on Lawyers’ Trust Accounts) regulations, simplifying financial management for client funds and firm expenses.
• Payroll Setup: Manage wages for paralegals, associates, or administrative staff with a compliant payroll system, ensuring accurate reporting and compliance with labor laws.

Bookkeeping: Keep Your Law Firm’s Finances in Order

Law firms deal with complex financials, from tracking billable hours to managing client trust accounts. Our bookkeeping services, including the basic bookkeeping in our starter plans, keep you organized:

• Track Revenue Streams: Monitor income from hourly billing, flat fees, or contingency cases, ensuring accurate records across multiple clients and cases.
• Manage Expenses: Categorize costs for legal research tools (e.g., Westlaw), office rent, or marketing, vital for profitability in competitive markets.
• Real-Time Insights: Access financial data to optimize billing rates, manage case budgets, or plan marketing strategies, boosting client acquisition and retention.

Tax Planning and Preparation: Maximize Law Firm Savings

Small law firms have unique tax opportunities, but navigating deductions and compliance can be complex. Our tax services help you save:

• Leverage Deductions: Claim write-offs for office expenses, professional memberships, or continuing legal education, like an attorney we helped save $8,000 by deducting case management software and bar dues.
• Self-Employment Tax Strategy: Plan for quarterly estimated taxes to avoid penalties, tailored to fluctuating income from legal fees.
• Stay Compliant: Our integration with basic bookkeeping ensures accurate records for IRS filings and IOLTA compliance, tailored to cash-basis accounting common in small law firms.

Why Small Law Firms Benefit

• Save Time: Focus on client cases and legal strategy, not paperwork.
• Stay Compliant: Meet IRS, state bar, and IOLTA regulations, crucial for law firms handling client funds and professional obligations.
• Grow Your Practice: Reinvest tax savings into hiring staff, upgrading technology, or marketing to attract high-value clients.

Get Started Today

Don’t let administrative tasks derail your law firm’s success. Our affordable starter plans (incorporation, basic bookkeeping, bank account, and payroll setup) and expert bookkeeping and tax services are designed to keep your small law firm thriving. Contact us for a free consultation or visit our pricing page and start building a practice as strong as your legal expertise.

Focus on law, not logistics—launch and grow with confidence.