Contingency-fee firms can be profitable on paper and short on usable cash. Case costs, irregular fee receipts, settlement timing, and trust-account activity need separate records that still connect at month end.
Questions the books should help answer
- How much cash has the firm advanced on open matters?
- Which costs have been reimbursed, written off, or remain outstanding?
- What operating cash is available after payroll, tax reserves, and current obligations?
- Did settlement-related entries move through the correct accounts?
- Which balances require attorney or case-manager follow-up?
Separate the records by purpose
Client trust funds are not operating revenue. Case-cost assets or expenses are not interchangeable with trust liabilities. A settlement statement is not a substitute for the general ledger, and the general ledger may not contain every matter-level detail. The workflow should identify which system owns each record and how the systems are checked against one another.
Start with fit
Discuss your firm's matter economics
Tell us what needs attention. We will review the basics and follow up about fit and next steps. This is not legal or tax advice.
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