Law firms face many financial-related obstacles, from partner profitability to financial statements, malpractice insurance, payroll and salaries difficulties, and invoicing. Yours is probably one of them. Has it ever occurred to you that the problems might be due to the underlying issues in the accounting and bookkeeping aspects of your firm?
As a lawyer, your main focus is defending your clients and nurturing your expertise, not overseeing the firm’s records and bank statements. Are you planning to outsource your law firm’s accounting and bookkeeping needs to guarantee financial stability? With an outsourced accounting firm, you can devote more time to what you do best — representing your clients.
Whether you’re a personal injury lawyer in Oakville or a criminal defense lawyer in London, accounting and bookkeeping play a crucial role in your firm’s financial assets.
One of the most effective ways to prevent improper accounting and bookkeeping management is by working with an outsourced accounting company. Find more reasons to outsource your firm’s financial needs in this article.
The Difference Between Accounting and Bookkeeping
Bookkeepers and accountants share common goals, but they support your firm in different stages of the financial process. Bookkeeping is an administrative role that oversees the daily tasks of recording financial transactions, including receipts, sales, and payments. One of the main components of bookkeeping is maintaining a general ledger.
Accounting, on the other hand, is more subjective. It provides law firms with financial insights based on the information gathered from the bookkeeping data. The critical part of the accounting process is analyzing financial reports that will be vital in business decisions.
Why Outsource Your Firm’s Accounting and Bookkeeping Needs
Working with people outside your firm might be a huge leap, but outsourcing your financial tasks is a worthwhile investment. Find out why below:
1. To access the expertise of accounting professionals that you deserve
Suppose you are considering hiring a company specializing in law firm accounting and legal bookkeeping in Calgary. Naturally, you need to know their level of expertise. After all, you must entrust your books and financial reports to professionals and experts.
Whether it’s general accounting, payroll, or taxes, reputable outsourced accountants and bookkeepers profoundly understand them. They can leverage this expertise to offer superior insight and provide more value to your firm. They’ll strive to help you meet all tax and reporting requirements for the local and state agencies and keep your financial records in order.
Professionals also have extensive knowledge of the tax structure. It may seem uncomfortable at first to entrust confidential work to a stranger, but experienced accountants offer priceless benefits.
2. To focus on your clients without having to keep up with the new accounting and bookkeeping technologies
It’s challenging enough for you to keep up with all the new legal technologies. When you decide to handle your finances independently, you may find it challenging to make sense of technological advancements. This is especially challenging when you only have the basic skills and knowledge of accounting software.
Why learn the latest accounting tech when outsourced accounting services have a pulse on the industry’s latest services and innovative technology? When you work with these professionals, you can rely on them to utilize technologies and tools to promote your firm’s highest standards.
3. To save money
When you decide to manage your accounting and bookkeeping needs on your own, you need to spend time on administrative tasks instead of taking care of client tasks. The downside is that you cannot save money because you’ll be wasting time on accounting tasks that are not billable.
Similarly, when hiring an in-house accountant or bookkeeper, you must pay multiple employee benefits, such as tax and leave credits. This will result in higher costs than hiring a reliable accountant, wherein your firm only pays for the services requested.
Professionals have the necessary techniques to make an impact on saving money. At the same time, outside accounting firms can offer business insight to create a competitive advantage for your firm. Partnering with them will allow you to do billable work and receive advice about setting up a favorable business structure to maximize your tax deductions.
4. To ensure firm growth
With a growing business, the skills necessary for adequate financial statement management also increase. As a result, you may need to handle a much broader range of matters, unlike in your startup years. This will make your firm susceptible to financial errors.
To ensure that your firm will steadily grow and minimize financial risks, work with an outsourced accounting firm. You can outsource companies depending on your needs, like those, for example, that are proficient in handling a Malta company tax rate. Professional companies like this will dedicate themselves to protecting your firm from financial harm.
What’s even more beneficial is that aside from handling your accounting and bookkeeping needs and giving you tax rate advice, your accountant can be your financial advisor. This will increase your firm’s efficiency and help you navigate the most efficient path forward.
Outsourcing your accounting and bookkeeping needs will benefit your legal practice in various ways. Professionals will dedicate their expertise to safeguarding your firm’s assets and ensuring everything is efficient and accurate. Outsourced accountants and bookkeepers can act as an extended arm for your business. They will help you with accounting software, taxation, and other financial matters and propose solutions that will work well with your firm. Work with a reputable outsourced accounting company to avoid struggles and errors in your firm’s accounting and bookkeeping.