Transforming a law firm's operations through outsourcing with RSM Catamaran

Consolidating services with a single vendor—particularly across critical functions such as information technology, finance or accounting—can be nerve-wracking for some organizations.

“The minute you give one vendor the power of controlling your IT stack and back-office processes, you go down a certain path,” says the chief operating officer of a leading law firm. “They've got to be really good, and if they're not, they can really screw up your system.”

As a family-owned firm that had grown rapidly and had plans for additional expansion, this client initially hired RSM US LLP to assess cybersecurity and IT issues. But what began as an initial project focused on IT concerns soon evolved into a comprehensive review of the firm’s back-office and embedded family office functions.

The big picture

The firm’s payroll and finance functions were inefficient, which affected the firm’s ability to scale. In addition, the firm had missed out on substantial tax credits they could have claimed, representing missed opportunities for revenue optimization.

RSM approached the engagement as a cross-functional team, showcasing the firm’s ability to address all back-office and IT needs comprehensively. To overcome the firm’s initial concerns about relying on a single vendor, RSM built trust with the law firm's leadership and strove to integrate functions into flexible, smoothly running processes. This cohesive approach led to RSM assuming responsibility for all back-office functions, including IT, payroll, tax and finance.

To help the law firm develop a robust IT infrastructure, RSM modernized their tech stack, implementing structured communication cadences and instituting project management oversight. These improvements laid the groundwork for the further integration of finance and tax functions.

RSM’s solutions yielded significant benefits for the firm. By streamlining and optimizing back-office operations, RSM freed up the law firm’s leadership to focus on their core business. In less than four years, the law firm increased their caseload by approximately a factor of 10 and nearly doubled their revenue. Furthermore, RSM’s experience in budgeting and tax strategy allowed the firm to benefit from tax credits they had previously missed, creating additional opportunities for growth.

RSM’s holistic service model fostered speed and efficiency. It also simplified processes that might otherwise have required multiple vendors.

The COO says that RSM professionals have established effective communication with executive team members, and the two firms hold regular meetings. These touch points address issues across all their back-office functions, a process that would require substantially more time and effort if multiple vendors had to get involved for every question. With a more structured IT system, a more robust accounting infrastructure and a strategic tax plan in place, the firm is well positioned to grow. 

The takeaway

With RSM managing the client’s back-office functions, the law firm can focus on strategic priorities like growth and scale. RSM’s engagement proved transformative for this family office.

“I see us continuing to grow,” the COO says. “We now have a robust IT system and a strong accounting and tax practice as well. RSM has made a difference.”