Here are the 3 key reasons why it’s essential for law firms to work with professional legal accountants:
1. Stay Compliant
Every small or solo law firm needs to follow the tax rules and requirements set in their state. Making a mistake, such as misplacing money from a trust account, can lead to devastating penalties. If you want your law firm to have a strong reputation for being ethical and trustworthy, you need to stay compliant by hiring a professional accountant.
2. Revenue and Expense Tracking
Although small and solo law firms may appear to be easier to financially manage than larger law firms, they can still lose track of hours charged, employee benefits, or operating expenses. When working with experienced bookkeepers and legal accountants, you know exactly where your money is, how it’s being spent, and how much is coming in.
3. Plan for Growth
If you’re hoping to see your law firm grow over the next five to ten years, you need to have strong financial planning. Working closely with a skilled accountant can help you plan for growth with fewer risks and more rewards. A legal accountant can help you understand where you stand now and how to create a path for where you want to go.