Outsourced Accounting for Law Firms: When and Why to Make the Switch
As an attorney, your time is valuable. You are constantly pulled in multiple directions, and accounting often gets pushed to the back burner.
Many law firm owners think, “I’ll get to that later,” but there is always something more urgent. After a while, it becomes a bigger project than you have time for, so it gets ignored until tax time or when a banker requests financial statements.
Some firms hire in-house bookkeepers, which can be a great option—if you fully understand the accounting function. Without a clear understanding of financial reports and bookkeeping accuracy, you could be paying for a process that isn’t done correctly. This is a common issue in law firms that assume their books are in order without verifying the details.
No matter your approach, having up-to-date and accurate financials is essential to measuring progress and making informed decisions. Without them, you lack the data needed to set and track meaningful goals.
Why Law Firm Owners Shouldn’t Handle Their Own Accounting
As a law firm owner, your time is best spent leading your team, building client relationships, and growing the business. Accounting is necessary, but it isn’t the best use of your time. If you are spending hours trying to manage financials, you are taking time away from revenue-generating activities.
Many firms try to manage accounting themselves to save money, but this often leads to mistakes, overlooked opportunities, and increased stress during tax season. Outsourcing provides a way to maintain financial clarity while focusing on what you do best.
When Should a Law Firm Outsource Accounting to a CPA Firm?
Outsourcing your accounting is the right move if:
- You want peace of mind knowing your financials are accurate.
- You don’t have qualified staff to manage accounting in-house.
- You can’t justify the cost of a full-time employee.
- You need to understand what your financial reports actually mean.
- You are always caught off guard at tax time.
If you find yourself agreeing with these statements, outsourcing can provide a high-quality solution at a lower cost than managing it in-house. Time is money, and the time spent on bookkeeping and financial management could be better used elsewhere.
What Your Law Firm Gains by Outsourcing Accounting
When you partner with a CPA firm like Aligned CPA, you benefit from:
- Accurate financials with real-time access through a secure, web-based system.
- Peace of mind knowing a professional is handling your books.
- IOLTA trust accounting compliance with clear, accurate reports.
- Reduced overhead by eliminating the need for an in-house team.
- Improved processes that streamline financial management and reporting.
Outsourcing accounting is a valuable solution for solo practitioners, small firms, and growing law offices looking for a cost-effective way to manage their financials.
Next Steps for Your Law Firm
Evaluating your financials is the first step in making informed decisions about outsourcing. If you’re not sure where your firm stands, check out our blog on Evaluating Your Law Firm’s Financials.
Aligned CPA specializes in outsourced accounting solutions for law firms. Schedule a complimentary consultation to see how we can improve your financial processes, save you money, and provide clarity in your numbers.
ABOUT JOY
I help solo and small law firms GROW by providing accounting and growth planning services that will take their business to the next level.
I promise you, working with a CPA can be much more exciting than crunching numbers and reviewing last year’s taxes. I look at the day-to-day of your business and help you find ways to perform better, grow bigger and generate revenue with greater ease.