Case Study: Law firm saves $150K+ each year by outsourcing accounting and dumping Clio and then Cosmolex

CASE STUDY FOR LEGAL BILLING SOFTWARE:
Law firm saves $150K+ each year by outsourcing accounting and dumping Clio and then Cosmolex

The Challenge

A large firm with four offices was having payment realization issues. The three person back office accounting team was using Clio accounting software: their trust accounts were not in compliance with bar association rules. 

The firm decided to outsource the accounting and switch to Cosmolex. And yet, they were still not able to  extract data for KPIs, request evergreen retainers or get real time reports on their data. The firm thought they wanted a practice management solution instead of creating a best in breed legal tech stack. It was costing them…

The LeanLaw Accounting Pro program ensures legal accounting professionals identify and execute the most effective ways to find and maintain clientele to develop a profitable business. We created a space for experts to deliver the most value for their law firm clients, work with equally-passionate people and grow business at their own pace.

LeanLaw Accounting Pros get the latest best practices to walk clients through our platform onboarding process. Whether you help through the whole process or only partially — your clients are never alone.

From Karyn: I’m lucky with this firm because they’re willing to take a look at the recommendations that I make. They wanted to see more reports. The biggest thing that drives them more than anything is having that data accessible.A lot of my other clients are just so used to what they do. They’re not willing to make a change.

The Solution

Karyn Andersen at Total Sum Accounting was hired because she is a law firm accounting expert — almost all of her clients are law firms. Karyn re-introduced them to LeanLaw and showed them how easy IOLTA trust compliance can be if you use the right tools. With LeanLaw’s evergreen trust requests, realization went from 50% to almost 90%. 

By outsourcing to Karyn’s team, the law firm doesn’t have to deal with bandwidth issues when someone is out sick or on vacation, and they don’t have to pay the additional overhead employer taxes, health insurance, 401k, or provide office space for the employees.

From Karyn: When you’re outsourcing your accounting team, you don’t have to deal with somebody who’s out sick, or somebody on vacation and having their desk covered. When someone can just step in and take over somebody’s desk on trust accounting. Third is also actually going to be costs: my clients find it’s actually cheaper for them to outsource their accounting to us versus having a full accounting team. They don’t have to pay the additional overhead employer taxes, health insurance, 401k, and having to provide office space for the employees. 

The majority of the time what they pay us to be a full accounting team is, salary wise, probably going to be much less than if they had their own full in house accounting team.

When the lawyers start really looking at the numbers and realizing, wow, I can have these experts as my back office for less than I’m paying my staff, it’s an easy decision to outsource the accounting. LeanLaw really is the best out there for trust accounting.”

KARYN ANDERSON, TOTAL SUM ACCOUNTING

Benefits of LeanLaw

  • 50% Increase in Payment Realization Through Evergreen Trust
  • LeanLaw Accounting Pros understand ABA Compliance with IOLTA
  • Easy Data Extraction for KPIs
  • 100% Decrease in Overhead, Employment Tax, Health Insurance, 401K
  • 100% Coverage for Absence

Read More

Case Study: Tech Stack Automation Saved Law Firm more than $60K by eliminating administrative staff

Learn More: LeanLaw Accounting Pros or Find an Accounting Pro

Due Diligence: Must Haves vs. Nice To Haves

Categories to think about:

Timekeeping

Accounts Payable

Client / Matter

General Ledger

Reporting

Band Reconciliation

Billing

Conflict Checks

Receivables

IT

Trust and Retainer

Law Firm Accounting Professionals Weigh In

Caren Schwartz
35-45 Consulting-Global

Changing software is not something your law firm does lightly, nor do you want to do it often. It’s important to do your homework and understand your firm’s needs, analyze your choices, and put together a plan, including project management. That’s the best way to get to a new solution that helps your firm move forward.

Lynda Artesani & Sarah Prevost
The Proper Trust

In our experience after numerous law firm software migrations, the key to success in purchasing new financial software is to understand what critical features are MOST important to your business. Understand how it fits with your current (and future) staff and how your current best practices will work within these new tools. Picking a tool and a partner to help you migrate is essential to the success of this journey.