Accounting is not an exception to a law firm. Like every organization, law firms also need accounting services. Professional accountants help in recording and analyzing business transactions. Accounting is an important aspect of every organization and each business organization relies on an experienced accountant to manage its finances professionally. Professional accounts can become the company’s representative and financial advisor. They can be useful in finalizing deals and managing all third-party accounting issues.
Most law firms find it easy to hire a part-time controller or a permanent accountant. But small law firms or lawyers can not handle all accounting tasks on their own. Lawyers do not have the time or expertise to update business accounts. Moreover, accounting is not about maintaining daily books or accounts, it involves payroll management, bank reconciliations, auditing and tax services as well. Therefore, even if you hire a permanent accountant, he alone might not be able to provide all these services efficiently. It is better to hire an accounting firm that provides professional law firm accounting services.
The accounting firm will not only be responsible for managing your business accounts but will also provide the following services for your law firm.
- Data Management
- Payroll Management
- Tax Filing
- Official Audits
Law firms have a lot of data to manage. Each piece of data needs critical evaluation by the experts. Some firms do not have the skills to interpret accounting data, they then need accountants. Hiring an accounting firm to manage the client’s data or the company’s own accounts will reduce the accounting stress from the law firm.
Moreover, law firms make payments daily. To keep track of all payments, it is better to record it in the books. Accredited accounting firms have a cloud-based accounting system to track and update daily books. It makes it easy for the firm as well to check its books anytime.
Like all firms, law firms need to manage their payrolls as well. Lawyers need to be paid on time along with the other staff members. If your law firm does not have an experienced accountant to manage payrolls on time, your employees might become unsatisfied. To satisfy your employees, it is better to hire an experienced payroll manager.
Accounting firms have experienced accountants to manage the law firm’s payroll process smoothly. This ensures timely payments to your staff and reduces your accounts payables.
Whether it’s a lawyer or a law firm, a professional accountant separately maintains personal and corporate accounts. An accountant is familiar with the personal income tax laws and corporate income taxes also. So that you will not have to worry about any of it.
Tax filing is exhausting. Tax laws keep changing with time. Most accounting firms provide tax services as well. It helps in facilitating their clients with all accounting and tax needs. In this way, it becomes easy for the lawyers to pay their taxes on time. The tax experts will also update on the current tax situation, available tax benefits and future tax plans. So, it is important to get the best professional accounting services for lawyers.
If your law firm is based in Canada you might be familiar with the CRA audit. A CRA audit usually comes when you do not have professional accountants to manage your business accounts. If you do not have an experienced accountant to manage it, you might face penalties. Hiring an experienced accountant is equally important as tax filing. An experienced accountant is trained to handle official audits professionally. They have the skills and the experience to present and handle the auditing process professionally. That is why hiring a professional accounting firm is important in Canada.
Furthermore, hiring an accounting firm to manage your business accounts will provide you with more time for your duties. Your accounting firm will not only manage your accounts and daily bookkeeping tasks but will also provide you with financial advice. Your accountant will do your monthly bank reconciliations and will act as your company’s representative to other parties.
If your company is interested in a bank loan or is planning for investment, your accountant will analyze your financial position, prepare a report and present you with the best solution. Hiring an accounting firm might seem an expensive choice. But many firms are providing professional accounting services at affordable rates. With updated technology, it has become easier to virtually handle your business accounts online. This reduces the overall accounting costs, time and provides you with ease of access. It is a better option than hiring a permanent in-house accountant.