Before DLC

• Loss of internal accounting leadership.
• Lack of internal expertise to manage day-to-day accounting functions. 
• Inaccurate and unreconciled financial statements. 
• Time-consuming data entry tasks delaying progress and insights. 

After DLC

• Reconciled balance sheet accounts, creating a clean foundation. 
• Identified and documented gaps in financial processes with recommendations for improvement. 
• Delivered a pro-forma set of financials and supporting journal entries. 
• Increased financial visibility and operational accountability across leadership. 

Project Overview

A law firm specializing in construction, real estate, labor, and insurance law across California experienced a critical accounting issue that disrupted operations, requiring a heightened need to restore financial integrity. 

With no internal accounting expertise in place and limited external support, the client sought immediate support in managing their day-to-day accounting activities and understanding the true state of their financials.  

DLC was brought in to assess the situation, implement solutions, and provide clarity and structure to the firm’s financial operations. 

Business Challenge

The client faced a significant disruption in their accounting function after the dismissal of their accounting manager. With limited financial oversight and no clear ownership of accounting responsibilities, the firm was left with incomplete records, unreconciled accounts, and no visibility into their financial position. 

The law firm operated on Coyote, an industry-specific accounting system that was difficult to navigate due to poor customer support. Compounding these challenges, a large number of transactions had yet to be entered into the system – an effort previously taken on by the office manager, which proved more time-consuming than originally anticipated. 

Without the ability to reconcile accounts or provide accurate reporting, the firm lacked the financial transparency required to make informed decisions or maintain effective oversight. 

Approach

The engagement began with a discovery period in which DLC reviewed the firm’s financials and quickly identified the absence of reconciliations for most balance sheet accounts. All balance sheet accounts were reviewed and reconciled on an inception-to-date basis, including zeroing out legacy balances with no recent activity. 

Next, DLC reconciled the balance sheet through month-end and prepared corresponding adjusting journal entries. A pro-forma set of financial statements was developed and tied back to revised statements in Coyote, ensuring alignment and accuracy. 

To ensure sustainability, DLC delivered a comprehensive report of findings and recommendations to the firm’s board. This report detailed gaps in process, necessary improvements, and guidance for maintaining sound financial practices going forward. 

Results

By the end of the engagement, the client had accurate, reconciled financial statements – something they had not had for several months. The insights provided in DLC’s report offered a clear roadmap for improving financial operations, from internal controls and documentation to process ownership and oversight. 

While quantifying exact cost savings was not possible, the firm significantly reduced risk exposure and future inefficiencies by restoring trust in its financial data and accelerating the hiring of qualified accounting leadership. Perhaps most importantly, the engagement brought a new level of awareness among firm partners regarding the importance of finance accountability and maintaining an effective, well-supervised accounting organization.