Tax Planning for Law Firms

    Keep more of what
    you actually earn.

    Most lawyers treat taxes as a surprise. We treat them as a fixed cost. By reserving for taxes in real-time as you bill, you will never face an April 15th cash flow crisis again.

    Sound Familiar?

    You didn't go to law school to fight with your CPA.

    Every managing partner we talk to has the same story. The CPA does the bare minimum, sends a bill that feels too high for what you got, and somehow makes it your fault when something is off.

    01

    "Everything is always wrong and it's always my fault."

    Your CPA tells you the books are a mess but can't fix them without you doing the legwork. They blame your staff, your software, your process. You are paying them to solve these problems, not point at them.

    02

    "They never saved me a dime."

    You hired a CPA expecting proactive tax strategy. What you got was data entry and a return. No one ever called to say "here's how to keep more of your revenue this quarter." You just got the bill.

    03

    "April shows up and so does the panic."

    No quarterly estimates. No real-time tax reserves. No heads-up on what is coming. Just an extension filing and a number that makes you wonder where all the money went.

    04

    "I don't even know what I'm paying for."

    You ended up with a CPA who only does the return because it was the one thing you understood. The full scope of what an accounting firm could do felt too vague to commit to. So you bought the minimum and hoped for the best.

    What Changes

    Hand it off. All of it.

    Your tax planning should feel like something that just happens. You focus on your clients and your practice. We handle the financial details so you never have to think about them.

    What you are dealing with now

    Quarterly estimates are a guessing game

    You pick a number, hope it is close, and find out at year end whether you overpaid or owe a penalty.

    Tax season is a scramble for documents

    Your CPA asks for the same information every year. Nothing is organized the way they need it. Weeks of back and forth.

    Partner draws have no tax modeling behind them

    You take distributions when cash is available. Nobody is tracking the tax impact of draws, guaranteed payments, or year-end allocations.

    Trust account activity is disconnected from tax planning

    Retainers, settlements, and IOLTA disbursements all affect revenue timing. Your CPA treats them as an afterthought because they do not know how your billing software works.

    What it looks like with us

    Quarterly estimates based on real data

    We calculate estimated tax payments from your actual monthly financials. No guessing. Accurate reserves set aside as you bill.

    Tax season is already done

    We maintain your books all year. When it is time to file, the return reflects reality. No scramble. No surprises. No fire drill.

    Partner comp is modeled year-round

    Lockstep, eat-what-you-kill, or hybrid. We forecast the tax impact of every draw and distribution before the money moves.

    Trust activity is integrated from day one

    We work inside your practice management system. Revenue recognition, trust disbursements, and earned vs. unearned fees are all accounted for in real time.

    The Details

    Real tax planning requires real depth.

    We handle the complexity so you do not have to carry it. Here is what that looks like inside a Lancaster CPA engagement.

    Trust Accounting

    IOLTA compliance built into every month-end

    Client fund segregation, three-way reconciliation, and transparent trust ledger reporting. We manage trust activity with zero tolerance for gray areas, ensuring full compliance with IOLTA, IOLA, IOTA, and COLTAF requirements in your state.

    Revenue Recognition

    Earned vs. unearned revenue, classified correctly

    Retainers are not income until they are earned. Flat fees need to be recognized as work is performed. Contingency fees hit at resolution. We match your revenue recognition to your actual engagements, not a cash-in-equals-revenue shortcut.

    Estimated Quarterlies

    Accurate tax reserves calculated from live data

    We calculate your quarterly estimated tax payments using your actual financial performance, not last year's numbers. As your billing fluctuates with case cycles and seasonal patterns, your reserves adjust in real time.

    Partner Tax Planning

    Compensation structures modeled for tax impact

    Draws, guaranteed payments, retirement contributions, and year-end allocations each carry distinct tax consequences. We model these throughout the year so partners are never surprised and the firm's cash position stays predictable.

    Entity & Election Strategy

    The right structure for where your firm is today

    Whether your firm operates as a PLLC, PC, or partnership, and whether an S-election makes sense at your revenue level, we evaluate entity structure alongside your compensation model to find the most tax-efficient path forward.

    Deduction Identification

    Finding the savings your last CPA missed

    Billable expenses that never got billed. Overlapping software subscriptions. Write-offs silently eroding profit. Because we work inside your practice management system, we spot deductions that a CPA reviewing only the general ledger would never see.

    Software Fluency

    We don't "figure out" your software. We leverage it.

    75% of law firms under $10M annual revenue run on one of five platforms. These are the systems we work inside every day. If your CPA cannot pull data directly from your practice management system, they are working off incomplete information and giving you generic advice.

    Understanding trust accounting is not enough. You must also understand the software your trust accounting lives within. We do.

    Clio
    Smokeball
    LeanLaw
    MyCase
    Filevine
    Transparent Pricing

    You will know what you are paying for.

    Tax planning and preparation is included in every engagement.

    Our engagements with law firms typically range between:

    $950 to $10,000 / month

    depending on the size of your firm, practice type, and whether we handle money movement functions. Following our first call, we build a quote specific to your firm.

    • Monthly bookkeeping
    • Tax return preparation
    • Year-round tax planning
    • Quarterly estimates
    • Trust account oversight
    • Payroll scheduling
    • Monthly financial review
    • Dedicated CPA team
    Get Started

    Stop dreading tax season. Start delegating it.

    You should be focused on your clients, not fighting with your accountant. We will talk about where your firm stands and what it looks like when this is just handled.