Plan B Business
Professional Services

One-stop SMB advisor.
Not two firms wearing the same nameplate.

We work with combined legal + CPA firms doing $1M-$8M in annual revenue. You have attorneys AND CPAs under one roof - but they operate as parallel firms with minimal cross-referral. Our 12-month engagement integrates them into a true one-stop SMB advisory firm with 60%+ retainer revenue and 3x cross-service penetration.

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Industry Reality

9 patterns we see in >70% of combined legal + cpa firms

85%
frequency

Legal and CPA sides operate as parallel firms (no cross-referral, no shared client roster)

Root cause: Firm grew through merger or organic expansion. Lawyers and CPAs never integrated. Shared front desk but separate everything else.

What we do: Joint client review meetings (monthly). Shared CRM (Clio Grow + Karbon, or PracticePanther + Canopy). Cross-referral commission structure (10% internal). Cross-service penetration lifts from 8% to 35%+.

80%
frequency

Hourly billing dominates (under 25% fixed-fee or retainer revenue)

Root cause: Both sides default to billable hour. Realization rate (collected / billed) at 78-82%. Cash flow on 60-90 day cycle.

What we do: Productized service offerings: Business Formation Bundle ($2,500), Quarterly Tax + Compliance Retainer ($1,800/mo), Estate Planning Package ($5,500), Annual Business Advisory Retainer ($24,000). Move 60%+ of revenue to fixed-fee or retainer within 18 months.

75%
frequency

SMB clients use you for one service, hire competitors for the others

Root cause: Lawyers never mention CPA services. CPAs never mention legal services. Clients don't know you offer both.

What we do: Mandatory cross-service introduction at every new client onboarding. Joint annual business review for top 30 clients (lawyer + CPA in same meeting). Bundled annual retainer pricing makes the bundle cheaper than buying separately.

70%
frequency

Partner billable hour culture - everyone bills 1,800+ hours

Root cause: Compensation tied to personal billable hours. Partners can't take real vacation. No incentive to delegate.

What we do: Shift partner comp to: base + origination credit (revenue from clients you brought in) + firm profit share. Reduce personal billable hour target to 1,200. Free partners up to do business development and mentor associates.

75%
frequency

CPE (Continuing Professional Education) and CLE (Continuing Legal Education) requirements eating 60+ hours/year per professional

Root cause: No centralized tracking. Last-minute scrambling in December. Quality of CE choices poor (cheap/online vs strategic).

What we do: Centralized CPE/CLE tracking system. Annual learning plan per professional. Conference rotation strategy (1 major conference per year per professional). Quality CE that doubles as marketing (speaking engagements).

70%
frequency

Dual licensure complexity (state bar + state CPA board, plus AICPA, plus IRS Circular 230)

Root cause: Each professional carries 2-3 active licenses. Compliance failures (missed CPE deadline, MCLE shortfall, lapsed PTIN) create real liability.

What we do: Centralized compliance calendar. Quarterly check-ins on each professional's licensure status. Designated compliance lead (often Office Manager or COO). Compliance failures drop to zero.

70%
frequency

Average client revenue under $4,500/year

Root cause: Transactional mindset. Each engagement is a one-off. Client doesn't see you as 'their advisor' - just 'a vendor for one thing.'

What we do: Annual Business Advisory Retainer: $18K-$48K/year covers tax planning + entity maintenance + 2 advisory meetings + responsive Q&A. Built around the SMB owner's full year, not transactional moments. Average client revenue lifts to $12K-$25K.

65%
frequency

Associate attorney + staff accountant retention under 60% at 3 years

Root cause: Below-market base, no clear path to partnership, billable hour pressure, no equity story.

What we do: Restructure career paths: Partner-track (3-7 years), Career Senior (no partnership ambition, comp-protected), Of Counsel/Senior Manager (lateral expertise). Equity vesting schedule for Partner-track. Retention lifts to 80%+.

75%
frequency

Marketing is 100% referral-based with no proactive BD engine

Root cause: Both sides rely on word-of-mouth and CPA-attorney referrals from other professionals. No content, no SEO, no LinkedIn presence.

What we do: Joint thought leadership content (3 posts/week from 2-3 partners on LinkedIn). Quarterly SMB owner webinars (tax planning, entity structure, succession). Strategic referral partnerships with bankers, financial advisors, business brokers.

Benchmarks

The numbers we hit

KPIMarket avgPlan B targetAfter 12 mo
% revenue from retainer or fixed-fee engagements15-30%60%+45-65%
Cross-service penetration (clients using both legal AND CPA)5-12%40%+28-45%
Average annual revenue per client$3,500-$6,000$12,000-$25,000$9K-$20K
Partner billable hours (annual)1,800-2,000<1,3001,200-1,500
Realization rate (collected / billed)78-85%92%+88-94%
Associate / staff retention (3-year)45-60%80%+65-82%
Days sales outstanding (DSO)70-95<4038-55%
Engagement Model

What working with us looks like

  1. 01

    Month 1: Joint practice audit + financial deep-dive

    We pull every client's full revenue history across legal and CPA sides. We identify cross-service penetration baseline. We audit billable hour vs fixed-fee mix. We identify top 50 clients with cross-service upside.

  2. 02

    Months 2-3: Productized service offerings + joint client review

    Build 5-7 productized service offerings spanning legal + CPA. Launch monthly joint client review meetings. Cross-referral commission structure live. Top 30 clients invited to annual business review (lawyer + CPA in same meeting).

  3. 03

    Months 4-6: Retainer migration + BD engine

    Top 30 clients converted to Annual Business Advisory Retainer ($18K-$48K). Joint thought leadership content cadence launches. Quarterly SMB webinar series begins. Compliance calendar deployed across firm.

  4. 04

    Months 7-12: Partner comp + operations leverage

    Partner compensation restructured (base + origination + firm profit). Practice management software fully deployed (Clio + Karbon or equivalent). Partner billable hours drop to 1,200-1,400. We shift to quarterly cadence.

Common questions from combined legal + cpa firms owners

What size firm is this for?−
Sweet spot: $1M-$8M annual revenue with 3-15 professionals split between legal and CPA sides. Below $1M, you're typically a 1-3 person firm where integration is simpler. Above $8M, you need internal Managing Partner / COO role.
Are combined legal + CPA firms even allowed in my state?+
Mostly yes, with structural rules. Most US states allow lawyers and CPAs to operate under shared ownership through an MDP (multidisciplinary practice) structure or through parallel entities with shared services. Some states (notably DC) have explicit rules. Texas and California have specific structural requirements. We connect you with a professional responsibility attorney for state-specific structure - we don't provide legal/ethics advice on entity structure.
How does cross-referral commission work without violating ethics rules?+
Internal cross-referrals between professionals in the same firm are explicitly permitted in every US state under shared compensation rules. Cross-referral commissions to professionals OUTSIDE the firm are restricted (most states allow CPAs to receive but not pay referral fees; lawyer-to-lawyer referral fees have ABA Rule 1.5 disclosure requirements). We work within the rules - and connect you with ethics counsel as needed.
What practice areas work best in a combined firm?+
The natural overlap: business law + tax/CPA, estate planning + tax/CPA, employment law + payroll/HR, real estate law + real estate accounting, M&A law + transaction tax. We do not see strong synergy in litigation-heavy practices (personal injury, criminal defense) + CPA - those typically stay separate.
Should we hire dual-licensed professionals (JD/CPA)?+
Tactical yes for 1-2 key roles. A JD/CPA professional handles complex tax controversy, M&A, and estate planning matters that pure attorneys and pure CPAs can't fully cover. They command 25-40% premium comp. We help you decide if/when to hire one vs building cross-functional teams.
What about CPE (continuing professional education) and CLE (continuing legal education)?+
CPE requirements vary by state CPA board (typically 40 hours/year, with specific ethics + technical requirements). CLE requirements vary by state bar (typically 12-15 hours/year, with mandatory ethics, diversity, mental health/substance abuse components). We help build the centralized tracking system - we don't provide CPE/CLE content.
What entity structure works for a combined firm?+
Most combined firms operate as PLLCs (Professional LLCs) or LLPs (Limited Liability Partnerships) with specific state-by-state structural requirements. Some states require separate professional entities for legal vs CPA practice with a parent management company. Your professional responsibility counsel + state CPA board handle entity structure - we focus on operations and growth strategy.
What about AICPA peer review and state bar audits?+
AICPA peer review is required for CPA firms providing attest services (audit, review, compilation) every 3 years. State bar firm audits are random but increasing. Both require documented quality control systems. We help you build the operational quality control - actual peer review participation is on your AICPA-registered peer reviewer.
Who does the work?+
Ligal Frish and Eitan Eshtemaker - the two co-founders. Direct access, no associates. Fee structure: Diagnostic $1,500 one-time, Advisor $3,500/month (most firms), Partner $8,500+/month (multi-partner firms or pre-merger integration).

Stop running two firms. Become the SMB advisor your clients actually need.

30-minute strategy call. We'll diagnose your top 2 levers and tell you if we're a fit. No pitch. No pressure.

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