Track Department Profitability, and Restructure the Business for Long-Term Growth
Running a high-volume law firm may generate substantial revenue—but with that comes
complexity, high tax exposure, and the risk of growing operational inefficiencies beneath the
surface. That was the case for one of our clients, the sole owner of a large, multi-department
law firm who was bringing in significant income but lacked clarity on the financial performance
of the firm’s internal divisions.
He came to Solutions Group Accounting Firm (SGAF) looking for help with payroll,
bookkeeping, and compliance—but what he got was a full-service finance partner who helped
him reduce taxes, optimize investments, and restructure operations based on real data.
The Challenge: High Income, High Tax Burden, and No Financial Visibility by Department
This law firm owner was generating substantial profit—but with seven-figure income came a
major tax liability and no integrated view of where the money was truly coming from. The
firm had multiple departments (e.g., personal injury, family law, litigation, and mass tort), but
each was being lumped together in the books.
Key challenges included:
- Disorganized payroll and lack of reporting by department or partner
- No way to track profitability of each service line
- A very high personal tax burden with no proactive planning
- No use of asset-based investing strategies to create depreciation or long-term wealth
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A lack of financial integration between the firm and the owner’s personal wealthstrategy
Our Solution: Full-Service Financial Department + Advanced Tax Planning
SGAF stepped in to become the firm’s outsourced accounting, payroll, and tax advisory team.
Our approach focused on creating structure, clarity, and strategic insight—both inside the law
firm and at the personal level for the owner.
Department-Level Accounting and Profitability Analysis
Department-Level Accounting and Profitability Analysis
We completely restructured the firm’s books to track revenue, labor, expenses, and profitability
by department. This included setting up class-based reporting in QuickBooks Online,
implementing time tracking by department, and aligning payroll to those structures.
The result? We uncovered that one entire department was losing money every quarter,
despite producing revenue. With that data, the owner made the bold decision to shut down the
unprofitable division, redeploy staff, and focus resources on more profitable practice areas.
Payroll Management and Compliance
Own a Law Firm? We Help High-Income Attorneys Protect and Grow Their Wealth
Payroll Management and Compliance
We assumed responsibility for payroll processing, including attorney compensation, bonuses,
support staff tracking, and 1099 oversight. SGAF brought in controls, streamlined reporting, and
automated processes—freeing up the owner from day-to-day admin.
Strategic Tax Advisory to Reduce Owner’s Tax Burden
Strategic Tax Advisory to Reduce Owner’s Tax Burden
The law firm owner had no prior tax strategy. SGAF executed a multi-pronged advisory plan that included:
- Income shifting strategies across S-Corps and multiple entities
- Creating a retirement plan structure to generate pre-tax savings
- Advising and structuring real estate investments to create depreciable assets
- Vetting and analyzing oil and gas investments for passive loss opportunities
- Timing distributions and deductions for optimal impact on AGI and AMT exposure
We also coordinated with the client’s estate attorney to align the investment strategy with long-
term wealth planning goals.
The Result: Lower Taxes, Smarter Operations, and Better Business Decisions
With SGAF’s help, the law firm and its owner achieved:
The Result: Lower Taxes, Smarter Operations, and Better Business Decisions
With SGAF’s help, the law firm and its owner achieved:
- Clean, timely books with full visibility into department-level profitability
- A strategic decision to exit an unprofitable line of business
- Streamlined payroll and bonus tracking tied to productivity metrics
- Significant reduction in taxable income through real estate and energy investments
- Greater personal wealth creation through asset-backed investing
- Quarterly financial and tax planning meetings to stay ahead of the curve
This was more than a cleanup—it was a transformation. Today, the firm operates leaner, the
owner pays less in taxes, and strategic financial decisions are made with confidence—not
guesswork.
Own a Law Firm? We Help High-Income Attorneys Protect and Grow Their Wealth
At Solutions Group Accounting Firm, we specialize in supporting successful law firm owners who
want more than just tax prep. Our clients receive:
- Department-level accounting and profitability tracking
- Payroll and compensation structuring
- Proactive tax planning and investment advisory
- Real estate and depreciation-based tax strategies
- Quarterly strategy calls and personal financial alignment
Don’t let high income turn into high stress. Let us help you structure your firm—and your
wealth—the right way.
Schedule a Confidential Tax and Financial Review Today.
