The legal profession requires an accounting law firm to take care of their specialized accounting needs. It doesn’t make a difference if the law firm is a one lawyer, two-partner or a large firm with hundreds of lawyers.
An accounting law firm service has the knowledge, skills and experience needed to quickly recognize the challenges and issues that have the potential to affect a law firm. As well, a CPA specializing in legal issues needs to have the expertise to put solutions in place with little upheaval. Accordingly, they need to know which practices work and which ones don’t. Lawyers are experts in the courtroom not in an office surrounded by financial reports and balance sheets. An accounting law firm saves time, worry and headaches. They help lawyers create an accounting system that keeps the firm’s finances in order by keeping the accounts payable and receivable, up to date.
Additionally, accounting law firms and accountants offer services that are essential to help law firms succeed during challenging and complex times. A lot of firms need help to manage their cash flow, trust accounts, tax planning, bookkeeping, payroll and capitalizing their investments. Even if a law firm doesn’t have growth plans, an accounting law firm can help improve both the bookkeeping and accounting departments. A consultation with a CPA can give a law firm a new perspective on current accounting functions and possible improvements.
Due to the profession and special circumstances related to law firms, they require specialized accounting law firm services. Some of which are listed below:
• Merger and Acquisition analysis
• Operational Reviews
• Strategic Planning
• Trust Accounting
• Partner Compensation Systems
• Partnership Withdrawal
• Retirement Issues
• Profitability Improvement Studies
• Tax Planning
• Operational Reviews
Hiring an Accounting Law Firm for Trust Accounting
A growing number of lawyers face claims connected to inappropriate trust accounting. Sometimes lawyers allow clients to use trust accounts as bank accounts, or they act as escrow agents. Which leads to people wondering if the lawyer even performed a legal service connected to monies that came in and out of the firm’s trust account. This leaves a door open to possible denial of insurance coverage, leaving the attorney exposed to the paying the entire cost of any claims that are made.
The professionalism of a lawyer is held in high esteem, so their legal services are automatically viewed with confidence and respectability. Activities performed on behalf of clients is protected by solicitor/client privilege. Hiring an accounting law firm ensures that a lawyer is not unwittingly duped into inappropriately using their trust funds.
Operational Reviews and Accounting Law Firms
The current business environment places overpowering demands on professional services and this includes law firms. Making it very important for lawyers to have qualified accounting advice on the following aspects related to their firm:
• Tax returns
• Financial statements
• Banking reports
• Aging and productivity reports
• Accounts receivable reports
• Profile of practice and partners
• Compensation structures
An accounting law firm provides lawyers with valuable accounting services that are unique to the profession.
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