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Why Law Firms Should Outsource Their Accounting

Friday 1st May 2020

Why Law Firms Should Outsource Their Accounting
Law firms face many financial issues that stop their growth and ability to provide a better service. Some of the most common problems include financial statements, trust accounting, invoicing, difficulties with payroll and salaries, and partner profitability.

The truth is that dealing with all of these problems takes time and work. The good news is that there is an easier way to solve these issues, and it is called outsourcing.
What is Outsourced Accounting?
Outsourced accounting is a service which provides an accounting department experience for small business. The accounting service will handle:

● Day-to-day transactions
● Accounts payable
● Accounts receivable
● Payroll
● Financial reporting

Outsource accounting businesses offer a team of accounting professionals at a low cost to handle your law firm's bookkeeping.

One of the main features of outsourcing accounting is that they are just like an internal accounting department as they can handle all types of functions. They will keep a constant eye on your accounting, giving you the tranquility to help you achieve your law firm goals.
Benefits Of Outsourcing For Law Firms
Reduced Costs
Requiring less staff time for internal accounting functions will help you save in employment costs such as salaries and payroll taxes. You could use this money to hire employees that will focus on your main business rather than auxiliary services.
Minimize Risk
Having accounting professionals taking care of your law firm finances will minimize the risks of costly errors. As you might already know, the penalties and interest charges for payroll and income tax mistakes are overwhelming. When you have trained professionals, you will limit the risk of losses to your legal firm.

Improving Productivity
With a team of experts by your side, you will be able to make better business decisions faster. When you work with accounting professionals, you will not need to spend time and money trying to keep up with new laws, policies, procedures, and technologies. You will have time to make wise business decisions for your legal firm in less time.

Besides, suspicious activities will all be reported to you, reducing the likelihood of fraud or government penalties.
Better Workload Management
When you receive support for accounting functions, you will have more valuable time for better workload management. You will get a lot of help in topics such as:

● Working capital optimization
● Cash flow preparation
● Credit facility analysis
● Debt compliance monitoring

This means you can delegate responsibilities and redirect your focus to the future of your law office.
7 Tips For Hiring Outsourced Accounting Services
Before hiring an accounting team, you need to compare services providers in the accounting and bookkeeping industry. Look for the following things:

● Licensing and Certifications. Look for people who have an accounting degree. This way, you can be sure of the training and education that went into the accountant's development.
● Reputation. Remember, you are entrusting your law firm financial information to the accounting team, so you must trust the company. Make sure to bring in a team that holds the highest levels of accountability to protect your information.
● Services. Look for a company that can provide the services your law office need. It is imperative to have clarity about the financial services that you are looking for to support your goals and to make sure you are hiring a team that provides the skills that are needed.
● Experience. It could be an excellent idea to outsourced an accounting team that specializes in law firms.
● Accounting tools. Avoid accounting companies that want to implement a manual system, as we live in a modern world, with amazing online tools to support automation.
● Pricing. Make sure to look at the price and consider the value and services provided for that cost. Always keep in mind that outsourced accounting services are an investment for your legal firm.
● Great customer support. It is essential to choose an accounting service that can be there for you if you have questions about your law firm finances. Don't forget to ask about ongoing support throughout the year.

Finally, it is never too early or too late to invest in accounting services. Having an accounting team can be invaluable to help you improve your law firm's profitability.