Case Study: Specialized Law Firm Services to Help Manes & Weinberg

How is success defined in a small law firm? 

On one hand, it’s advocating for those who need it. It’s winning cases, achieving justice. 

On the other hand, in a small firm, you’re also running a business. And without proper controls and operational efficiency, your success may only be temporary. 

Manes & Weinberg, a thriving law firm focusing on special education advocacy, family law, and more, found operational complexity multiplying as the practice grew. Partners Jessica Weinberg and Beth Manes were spending valuable time managing finances instead of focusing on their clients and cases. 

This case study explores how Accounting Girl stepped in as their virtual CFO and legal accounting superhero, transforming their financial management and allowing them to concentrate on what they do best – practicing law.

The Challenge

As Manes & Weinberg expanded, administrative and financial inefficiencies began to emerge. Some of the prominent concerns were: 

1. Time management: Balancing client work with financial tasks was becoming increasingly difficult.

2. IOLTA account management: Ensuring proper handling of client trust accounts was critical but time-consuming.

3. Cash flow issues: Inconsistent billing practices led to unpredictable income.

4. Lack of financial insight: Without proper reporting, making informed business decisions was challenging.

5. Compliance concerns: Keeping up with regulatory requirements was overwhelming.

Jessica shared, "When we got started (with Accounting Girl), the goal was simply to clean up the mess and give us greater visibility. But when we got going, we realized there were things we didn’t even know we needed (like payroll and collections), which she helped us with.”

Enter Accounting Girl

After researching various options, Manes & Weinberg discovered Accounting Girl's specialized services for law firms. Intrigued by the promise of a virtual CFO who understood the unique needs of legal practices, they scheduled a consultation.

Beth recalled, “We are lawyers, and want to focus on serving our clients. Having peace of mind that our accounting was right, allows us to do that, and having Jill’s expertise around law firms made a huge difference.”

The Accounting Girl Solution

Accounting Girl implemented a comprehensive strategy to address Manes & Weinberg's financial challenges:

1. IOLTA Management and Reconciliation

While the Manes & Weinberg firm doesn’t use their trust account much due to the way their billing is structured, it is still in use, and needs to be meticulously managed. 

With Accounting Girl, they get a full report and every dollar and transaction is accounted for, including:

• Performing daily reconciliations

• Handling three-way reconciliations

• Managing transfers

2. Streamlined Accounts Receivable and Payable

In a law firm, one of the biggest challenges is that the partners in the firm don’t have time for administrative tasks. Their full attention is on their clients, and serving them well. 

For Manes & Weinberg, it’s no different, but prior to working with Accounting Girl, that led to serious gaps in their invoicing, AR tracking and collections. 

Part of the Accounting Girl cleanup and system optimization included:

• Invoicing clients promptly

• Tracking payments

• Managing vendor bills

“We had some serious collections issues that we discovered after working with Jill on our cleanup,” Beth said. “Jess and I are just trying to work with our clients, and practice law, and then we came to realize how much was being missed in collections.”

3. Daily Financial Oversight

Prior to working with Accounting Girl, even simply determining pay structure for partners was complicated and unclear. 

Once their bookkeeping became streamlined, their cash positions became much more clear allowing predictability around distributions. 

Accounting Girl provided:

• Daily bank and credit card reconciliations

• Cash flow management

• Expense tracking and analysis

• Payroll processing with direct deposit

• W-2 and 1099 processing

“We were always making guesses with how to pay ourselves, because we didn’t know exactly where we stood week to week, " Beth said. “Now it’s just a simple report and is much more controlled.”

Comprehensive Financial Reporting

Manes & Weinberg went from looking backward, and not knowing week-to-week where the financials stood for the firm, to consistent reporting with detailed analysis 

“We just get reports delivered to us now,” Jessica said. 

Accounting Girl regularly provides:

• Regular management and financial reports

• Budgeting and cash flow projections

• Profitability analysis by practice area

• Payroll reporting

Now, the firm is able to operate strategically, looking forward rather than always backward. 

Intentionality with Business Growth

With Accounting Girl, Manes & Weinberg now has increased clarity on the direction the firm is headed. 

As a virtual CFO, Accounting Girl assists with:

• Break-even analysis

• Productivity analysis

• Cash scenarios for major decisions (e.g., hiring, office expansion)

“It’s been really helpful being able to see where the firm stands and where we are going.” Beth said. “She will run reports comparing this year to last year, and we can see where we are growing and be more intentional about how we’re running the business.”

The Results

After partnering with Accounting Girl, Manes & Weinberg experienced significant improvements:

1. Time Savings: Jessica and Beth reclaimed hours each week previously spent on financial tasks.

2. Improved Cash Flow: Consistent invoicing and follow-up led to a significant increase in on-time payments.

3. Better Financial Insights: Regular reporting allowed for data-driven decision-making.

4. Stress Reduction: Peace of mind knowing IOLTA accounts were managed correctly.

5. Compliance Assurance: All reports and requirement were ready for any audit

6. Scalability: With financial systems in place, the firm was poised for growth.

Jessica reflected, "Working with Accounting Girl has made it easier to sleep at night. We’ve only been audited once, and would rather not do that again. But if it happened, we’d approach it with confidence knowing we have everything organized. 

The Accounting Girl Difference

What set Accounting Girl apart for Manes & Weinberg was:

1. Legal Industry Expertise: Deep understanding of law firm accounting needs, especially IOLTA management.

2. Customized Approach: Tailored solutions to address the firm's specific challenges.

3. Proactive Communication: Regular updates and alerts about financial matters requiring attention.

4. Technology Integration: Leveraging tools like QuickBooks Online for maximum efficiency.

5. Strategic Partnership: Acting as a true virtual CFO, providing insights beyond basic bookkeeping.

Jessica said she strongly recommends law firms work with Accounting Girl, who have become like part of the team: “They’re attentive, accessible, very quick to respond. Accounting Girl has been fantastic to work with.”

Ongoing Support and Future Growth

As Manes & Weinberg continues to grow, Accounting Girl remains an integral part of their team, providing:

• Ongoing financial management and reporting

• Guidance on expansion opportunities

• Support for new practice areas or additional partners

• Continuous improvement of financial systems and processes

Partner with a Trustworthy Law Firm Accountant

The partnership between Manes & Weinberg and Accounting Girl demonstrates the transformative power of specialized financial support for law firms. By leveraging Accounting Girl's expertise as a virtual CFO and legal accounting superhero, Jessica and Beth were able to streamline their operations, and position their firm for sustainable growth.

Is your law firm held back by unorganized financial data? Get in touch with us today and see how we can help!