Most businesses do not find the need to hire professional accountants. They try to manage their accounts themselves or hire a part-time bookkeeper to record every transaction. But this can not be followed by small law firms. Lawyers can not afford to hire inexperienced accountants to manage their legal accounts. They need to consider twice before hiring one. Otherwise, they may face harsh consequences.
Like all businesses, lawyers need to consult accounting experts to manage trust accounts. Any mistake in accounting procedure can lead to severe legal penalties for the law firm. Therefore, hiring an expert accountant or replacing your part-time controller with a professional accounting firm is recommended.
Now, how can you shift from an existing accountant to a new accounting firm?
Selecting a new accountant can be troublesome if you have no idea what to look for. Here are some effective tips to consider before hiring a new accountant for your law firm.
- Check for Necessary Certifications
- Must be Tech-Friendly
- Should have Self Confidence & Patience
- Up to Date with On-Going Trends
Check for Necessary Certifications:
Lawyers must look for professional expertise and certifications before hiring a new accountant or an accounting firm. Most accounting firms have a team of experienced accountants who are responsible for managing all client’s accounts professionally. They use updated software to meet professional accounting standards.
Accounting firms hire those accountants who have a deep understanding of the new accounting procedures, laws and have multiple years of experience with proper certifications. Hence, hiring an accounting firm for a new accountant will be a better option as they will be experts in providing law firm accounting services.
Must be Tech-Friendly:
Lawyers should recruit an accountant who is smart enough to adapt to new technologies. Technologies are changing the way businesses operate. New accounting programs are launched quickly to facilitate better accounting procedures. Hence, hiring an experienced accountant who is not smart in running new accounting programs will not be a wise decision. Lawyers should look for someone more inclined towards cloud-accounting.
Most accounting firms provide online bookkeeping and accounting services for lawyers. This is a good thing for all legal practitioners as they can monitor everything online. They can consult online accountants anytime. This again makes hiring an online accounting firm a better choice than recruiting an in-house accountant. It will also save your time, money and resources.
Should have Self Confidence & Patience:
Accounting professionals should exhibit an extreme level of self-confidence and patience to tackle complex situations professionally. This trait is not only demanded by good business people but professional accountants as well. Firms providing professional accounting services for lawyers have those accountants who can handle pressure well. They are good at communication, have good social bonding and business relations to utilize efficiently.
Moreover, an accountant is not just your money manager he is your company’s representative as well. In some scenarios your accountant will be representing your company, explaining your clients and handling official audits. For that reason, lawyers must opt for professional accountants rather than part-time controllers. In some countries like Canada, businesses might get a CRA audit if they have not hired a professional accountant. This costs a lot if the business is incapable of handling official audits. Thus, shifting to an accounting firm for your business accounting needs will assist you in a lot of ways.
Up to Date with On-Going Trends:
Bookkeeping and accounting trends are evolving with time. New laws, regulations and press releases are made on business accounting procedures. Therefore, having an accountant who is well familiar with the news and trends should benefit the company. Like accounting programs, accounting laws and tax laws are updating with the latest situations. If you do not have the time to study and evaluate each rule for better business practices, you should always opt for a professional accountant.
Some small businesses hire part-time controllers or bookkeepers to keep track of their daily transactions. This helps them in deciding the company’s financial position at the end of each month. However, the figures might change if the bookkeeper has not implemented the new tax changes. Thus, hiring a well-versed accounting and tax expert will help you in your business growth as well.