Start with the operating books, not just the bank balance.
Identify the accounts used to collect fees and pay practice expenses, the billing reports available and the periods that need attention. Match collections and expenses to supporting records so unresolved items are visible before reporting or return preparation. Unbilled time, outstanding invoices and collected cash answer different questions; a bank feed alone does not explain all three.
Agree which source reports the firm provides, who explains unfamiliar transactions and how adjustments are approved. A recurring engagement needs a repeatable handoff from the practice, not an assumption that every transaction carries enough context.
References: IRS recordkeeping
Keep client money and trust responsibilities separate.
Client funds, earned fees and firm operating cash need careful distinctions. Pennsylvania lawyers should consult Rule 1.15 and IOLTA Board guidance for their particular responsibilities. CTAS does not represent this ordinary accounting service as a legal trust-account compliance review, an IOLTA certification or an opinion on when fees may be withdrawn.
Before accepting records involving trust funds, agree who maintains client ledgers, who performs required reconciliations and which legal specialist addresses unresolved compliance questions. Identify transfers between trust and operating accounts without assuming that the transfer itself establishes earned revenue.
References: Pennsylvania IOLTA Board guidance
Connect partner payments with the entity and records.
Draws, distributions, guaranteed payments and employee wages are not interchangeable labels. The entity and tax treatment determine which questions need review. A firm considering S status needs a separate eligibility and compensation discussion; partner payment rules should not be borrowed from an S-corporation example.
Tell us how owners work in the practice, how payments are currently recorded and whether ownership or compensation is changing. Accounting, prospective planning and return preparation can be coordinated only where each is agreed.
Use matter-level questions to define reporting.
If the firm wants matter-level profitability, identify whether billing, time and direct-cost records can support it. Decide how shared costs would be allocated and what the report is intended to show. A management schedule is different from tax reporting, and incomplete time or cost records limit the conclusions.
Cash-flow discussions should distinguish expected collections, payroll and overhead commitments, owner withdrawals and tax payments. Bring the question you need answered; CTAS will confirm the reports or analysis it can accept before promising a deliverable.
Questions before the next step.
Can you review our IOLTA compliance?
This page offers ordinary accounting and tax engagement discussions. Legal-specific trust-account compliance services are not represented as included. Identify those needs separately and involve appropriate counsel or a qualified specialist.
Can a small practice arrange ongoing support?
Discuss recurring bookkeeping, reconciliations and agreed reporting, including any historical work needed first. The accounts, periods, reporting frequency and responsibilities are established before work begins.