Accounting for law firms can be intimidating, even for seasoned law practitioners. If you are like many, you’ve spent all your years sharpening your law skills, so accounting and bookkeeping are areas you are not skilled at. Still, you should employ legal accounting services to ensure your firm runs smoothly and you are on track with your growth goals.
Why Legal Accounting Services?
Ideally, all legal professionals should understand the basics of accounting. However, there’s a lot that a seasoned accounting professional can do, thanks to their skills and expertise. Law firms looking to stay ahead of their financials often hire an accountant who will take care of everything, from bookkeeping to taxes.
Aside from ensuring the smooth running of your law firm, a professional legal accountant will help uphold ethical values within your business. Other accounting duties that a certified accountant handles are expense tracking, accurate trust accounting, invoicing and separating revenue from income. These tasks ensure the firm’s finances are accounted for and managed well.
Working with a seasoned accountant also guarantees compliance. Failing to keep up with the laws often results in fines and hefty penalties, which are costly to your balance sheet and reputation. That said, you always want to choose a reliable accounting professional who will listen to your needs and deliver on your expectations.
How to Choose An Accounting Firm in the Legal Profession?
Understanding what goes into legal accounting services is critical to choosing the right accounting firm. More often, people would prefer an accountant based on what they promise and end up frustrated with poor services a few months or years later.
So, what should you prioritize when hiring an accountant for your law firm? We have rounded up some key considerations to keep in mind. These include:
Level of Service
Before choosing an accounting firm, you must understand the services you want and what they can offer. Some firms provide just the essential accounting services, while others will go the extra mile at a fee. The trick is to choose a firm that will certainly meet all your needs. For instance, hire a firm that employs bookkeepers if you need comprehensive bookkeeping services. Firms without bookkeepers will charge extra if a CPA handler has to do the bookkeeping tasks.
Availability and Personal Connection
Depending on the size of your firm and the legal accounting services you need to be performed, how often you’ll need to see your accountant may vary. Most accounting firms are flexible and will adjust to the client’s needs, while others have rules they strictly follow.
Ideally, you want to work with an accounting firm that’s readily available to answer your questions and guide your footsteps. The accountant should also have the best social skills to ensure you connect professionally and understand each other at a deeper level.
Experience and Certification
Finding an experienced and certified accountant is the first step to ensuring all your firm’s financial duties are handled professionally. The best accounting firm will add value to your business and help you navigate bookkeeping, cash flow management, tax planning, and tax preparation.
Your Budget
Accounting fees vary with different firms. Some firms will charge a fixed rate for tasks such as compiling business net worth, filing tax returns, and preparing profit and loss statements. Others will, however, have flexible rates depending on their clients’ tasks. This means that your fee will depend on your firm’s unique needs. Typically, you want to opt for a pocket-friendly firm that is best for your business.
Stay Ahead of Your Finances Today
Keeping up with everyday legal duties while also managing your books and accounting can be taxing. Working with a seasoned accountant will free up time for your other important tasks and help you avoid compliance issues. Get in touch with our expert accounting team at Gurian CPA to stay ahead of your legal accounting services.
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