The business challenge
A large national law firm with multiple office locations needed assistance evaluating financial management reports and the revenue and expense allocation methods used for office and practice area reporting. Management partners had trouble understanding the purpose and comparability of various reports and, accordingly, were frustrated to the point of ignoring financial reports that could have been important in their strategic decision making process.
The Baker Tilly solution
Baker Tilly’s Professional Services team:
- Designed a financial reporting assessment process.
- Completed the assessment of financial reports and allocation methods.
- Provided recommendations to enhance the equitable allocation of direct and indirect expenses to office and practice area reports.
- Provided an analysis of financial data to enhance management’s understanding of how various reports should be evaluated for decision making, and just as importantly, what judgments would not be appropriate when reports were not designed for a particular purpose.
- Provided observations and recommendations related to areas where improvements in operating results could be obtained based on law firm industry comparisons and current trends.
As a result of Baker Tilly’s services:
- The law firm implemented recommendations to improve the equitable allocation of direct and indirect expenses for office and practice area reporting.
- The managing partner and office managing partners gained a heightened understanding of their financial reports which improved their ability to make strategic management decisions for improving operating results.
- The law firm gained enhanced visibility of key financial metrics that indicated where cost efficiencies were most likely to be obtained to improve profitability.
Baker Tilly specialists provide a full range of tax, accounting, assurance, and advisory services to professional services firms. We specialize in helping firms focus on key procedures and operating practices to improve your operations and financial results. Connect with Baker Tilly at 800 362 7301 or bakertilly.com.