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Law Firm Finance Roles and Responsibilities

Terrell A. Turner, CPA

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Terrell A. Turner, CPA

CEO, TLTurner Group

Legal Administrator Coaching
Bookkeeping & CFO support
Financial Optimization Support
Law Firm Finance Chair – ABA
www.TLTurnerGroup.com

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The TLTurner Group

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Learning Objectives

Identify and differentiate the key finance-related roles within a law firm

Evaluate when and how to hire or outsource financial roles

Apply best practices to manage financial responsibilities effectively

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Legal Administrator Responsibilities

CORPORATE

FINANCE

HUMAN

RESOURCES

IT

OPERATIONS

BUSINESS

PARTNERS

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Legal Administrator Responsibilities

CORPORATE

FINANCE

HUMAN

RESOURCES

IT

OPERATIONS

BUSINESS

PARTNERS

Generated with ChatGPT-Dalle

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Roles & Responsibilities

Billing and processing
Collections and payments
Bookkeeping
Taxation & Compliance
Financial Planning & Strategy
Treasury & Financing

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Billing

Reviewing time entries and case activity
Organizing billable vs. non-billable hours
Generating and sending invoices
Coordinating approvals from attorneys
Tracking retainer and trust balances

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Billing Best Practices

Review legal activity weekly or Bi-weekly
Set deadlines for the bills to be process
Align billing with the timing of payroll
ABA Model Rul 1.5

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Billing Example

Option 1

Monthly billing
Monthly Review process
3-hour review process
48 hour turnaround on follow-ups
3 – 4 hour to finalize billings

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Billing Example 2

Option 1

Monthly billing
Monthly Review process
3-hour review process
48 hour turnaround on follow-ups
3 – 4 hour to finalize billings

Option 2

Monthly billing
Weekly Review process
45 min review process
8 hour turnaround on follow-ups
30 minutes to finalize billings

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Collections

Tracking overdue balances (Accounts Receivable or AR)
Sending reminders or follow-ups to clients
Working with attorneys on next steps for aged balances

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Collection Best Practices

Weekly review your Accounts receivable aging
Discuss outstanding balances with the responsible attorney
Compare unpaid AR to Work in Progress
Establish a Stop Work Limit

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Collections – Aging Schedule

Responsible Attorney	0 – 30 Days	31 – 60 Days	61 – 90 Days	90+ Days	Total
James Law	$15,000	$0	$5,000	$0	$20,000
Sarah Law	$0	$30,000	$41,000	$92,000	$163,000
Willie Judge	$1,500	$10,000	$145,000	$5,000	$161,500
Debra Smith	$12,000	$10,000	$0	$0	$22,000

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Bookkeeping

Recording income and expenses
Reconciling bank and credit card accounts
Managing IOLTA/trust account compliance (3-way reconciliation)
Paying vendors
Generating financial reports

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Internal vs Outsourced Bookkeeping

Factor	Internal Bookkeeper	Outsourced Bookkeeping
Monthly Cost	$4,500 + benefits	$1,500+ flat rate
General Ledger	Firm Specific	Common Systems
System Expertise	Firm Specific	Variety
Frequency	Daily/Weekly	Bi-weekly or Monthly
Payroll Processing	Fully Independent	Collaborative
Trust Accounting	Fully Independent	Collaborative
Cash Mgmt	Hands On	Reporting & Controls

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Payables – Due Date Schedule

Responsible Attorney	0 – 15 Days	16 – 30 Days	31 – 45 Days	45+ Days	Total
Johnson Agency	$15,000	$0	$0	$0	$15,000
Sam Immigration	$0	$30,000	0	$5,000	$35,000
Jacks Professional Services	$1,500	$10,000		$35,000	$46,500
Susan’s Cleaning	$1,000	$1,500	$0	$0	$2,500
Total	$17,500	$41,5000	$0	$40,000	$99,000

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Taxation

Entity/Ownership Structure
Federal Income Tax Preparation
State & local Income Tax
Federal Payroll Tax filing
State Payroll Tax filings

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Compliance

Bar association trust/IOLTA reports
Business license filings
State & federal reports (e.g., W2s, 1099s)
Employee benefit reporting
State-specific taxes, such as Business & Occupation (B&O) taxes in Washington

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Questions

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Let's Connect!

Terrell A Turner, CPA

Law Firm + Finance

www.TLTurnerGroup.com

Terrell@TLTurnerGroup.com