At B2 Management & Consulting, we know how hectic the end of the year can be. We have put together some items that should help you maximize your profitability in 2021 and start planning for 2022!
For Law Firm Clients:
- Review realization rates and compare to prior years.
- Review client profitability to assist with determining billing rate adjustments noted in #3.
- Review attorney and legal assistant billing rates. Will the firm adjust rates in 2022? If so, establish a communication protocol with your clients.
- Set timekeeper budgets including billable hours, collections and originations.
For All Clients:
- Review your general ledger and correct coding adjustments as necessary.
- Look at your Profit & Loss report. Where do you stand? If you have a larger than expected profit, are there any major purchases you should make now that can be depreciated? Make sure you have the cash. Talk to your CPA tax advisor.
- Verify loan accounts and cleanup them up if necessary.
- Work on reducing your receivables (follow-up with clients to get paid!)
- Write off bad debt if necessary but work on getting paid first.
- Make SEP IRA or 401K contributions and donations to charity to reduce taxable income. (Talk to your CPA tax advisor)
- Verify your 1099 information is setup properly in your accounting system. Ensure you have W9’s and Tax ID numbers for issuing correct tax forms.
- Begin to think about year-end bonuses or special gifts. Will you give these this year or in January?
- Look for fringe benefits you should report on W-2’s. Some of these could include health & life insurance, transportation subsidies, moving expense reimbursements, educational reimbursement programs, and employee loans you’ve forgiven.
- Take a physical inventory of your products and FFE and make adjustments in your accounting system as necessary.
- Write a list of all the company’s major accomplishments for the year. Be prepared to share this with your staff, they will appreciate it.
- Write out your goals and plans for the next year.
- Create budgets for the next year if you work on a calendar year fiscal basis.
- Check all the links on your website to make sure they are active.
- Check with your CPA on COVID related tax breaks.
- Scrub your Balance Sheet – verify all your account balances.
B2 Management & Consulting would like to thank you again for allowing us to handle your accounting and bookkeeping functions. If you would like to discuss any of the items listed above in more detail, please don’t hesitate to contact us at 512-381-1500. This list is not intended to be inclusive of all items needed for your year-end planning. Please consult with your CPA tax advisor also.