Accounting is a very technical field, as you may imagine, and accounting for law firms is even more technical. Law firms have their own set of unique circumstances and situations that require more knowledge and experience than a general business or corporation would require. Accounting for law firms is really its own specialty and because of that, it’s important that you don’t hire just any accountant to handle the affairs of your practice.
Business Needs
Some of the accounting services a law firm may require are:
• Partner Compensation Systems
• Profitability Improvement Studies
• Mergers & Acquisitions Analysis
• Firm Restructuring & Dissolution Analysis
• Partner Withdrawal & Retirement Issues
• Firm-wide Strategic Planning
• Forecasts & Budgets
• Internal Control Reviews
• Capitalization Structure & Financing Analysis
• Tax Planning
• Review & Compilation of Financial Statements
• Operational Reviews
Accountants and lawyers are both problem solvers by nature – they both think quickly on their feet but are also capable of sitting down and really analyzing a situation and its possible outcomes. While this is a wonderful quality that any accountant worth their salt will possess, accounting for law firms doesn’t require someone who plans to sit down and reinvent the whole system. The nature of these businesses means they need an accounting firm that knows exactly what they are doing. Already knowing the best practices and methods for getting the job done is what law firms are looking for – they simply don’t have time to go through a trial and error phase.
The New World
Accounting for law firms can easily be applied to any size firm. Whether you are a solo-act, a partnership or a massive corporate law firm with hundreds of associates and a dozen partners, the right accountants will be able to give you exactly what you need, hassle free.
Technology is part of how accounting firms are adapting their services too. As cloud-based computing and mobile technologies become more commonplace and universal in everyday life, the same becomes true of the business world – and that’s a good thing. New technologies are making accounting for law firms easier than ever because information sharing is now a breeze. Important financial records and documentation can be transferred offsite or in-house with the click of a button – no more couriers.
Staying Current
Choosing an accounting practice that is in-step with technology is also important to law firms. Although the law is as old as time (almost), legal practices are up-to-date and tech savvy. Mobile technology is a massive part of a lawyers life – from emailing on the go to digital file access – you can rest assured that these practices are taking full-advantage of everything modern tech has to offer – you best believe they’ll want accountants who can keep up. If you can’t provide a modern approach to accounting for law firms, then you might very well be out of the rat-race altogether.
Law firms want accountants who know their stuff and need little direction. They want someone they can rely on, who has the knowledge and expertise to provide the firm with any vital documentation, forecasts or planning they may need, at the touch of a button. When it comes to accounting for law firms, you have to be in the know to get the gig.