Benefits of Outsourced Accounting Services
Between contracts, settlements, lawsuits, and everything else, your firm has enough to worry about on the legal side without worrying about cash. However, outsourced accounting services can help in diverse ways.
Reduce employee burnout.
Whether you underestimate the difficulty of accounting or just don't want to hand over the keys to the kingdom, keeping these operations in-house causes significant strain on your limited resources. Lighten the load with an expert partner instead. By doing so, your firm can:
Get client invoices out and paid faster.
Prevent human error.
Reduce overall workload.
Need a little convincing? Think about the all-important work-life balance. With pro resources to turn to, your team can get back to what's most important to them.
Improve profitability and support growth.
You aren't handling the finances yourself (yay!), but maybe you've thought about hiring a full-time in-house accountant. While it's not a horrible idea, this route could still be subpar.
The fact is that outsourced accounting services are well-suited to law firms. That's because they're cheaper than taking accounting in-house, you only pay for services you need, and they scale with you. As your firm grows, your finances get more complicated and accounting gets harder. Avoid navigating a complicated accounting system—and costly errors—and partner with a provider that can protect you as your firm expands.
Save time to focus on clients.
There's just not enough time in the day. That might sound cliché but a small-business owner spends an average of 10-plus hours a month on accounting—and law firms aren't immune. But outsourced accounting services are both cost-effective and efficient, helping you save money and streamline operations. With external partners, you get helping hands to:
Use the latest tech to generate financial insights.
Focus on client retention, service expansion, and marketing.
When someone's busy in the background doing the heavy lifting, you can prioritize client service.
Improve your firm's reputation.
"When someone shows you who they are, believe them the first time." —Maya Angelou
Your firm's first impression will stick with people, in the long run, so make it a positive one. The extra time you get back for your core business processes by collaborating with outsourced accounting services helps you strengthen your business, build trust, and ensure a positive reputation.
What to Look for When You Outsource Your Accounting
Once you've decided to find an accounting partner, don't just flip through the Yellow Pages. Instead, ask key questions as you screen outsourced accounting services:
What services do you provide?
What is your onboarding process?
How do you handle billing?
When should I expect to see results?
Of course, that first query may be the most important because law firms like yours have specific needs. So find out if potential partners offer core accounting services before you worry about anything else.
What accounting services benefit law firms?
Various virtual accounting services are uniquely suited to law firms because of robust requirements and complex financial needs. Look for accounting partners who can provide assistance in at least four areas:
GAAP accounting compliance, using standards for recording and reporting focused on three Cs: clarity, consistency, and comparability of financial information.
Bookkeeping, where a bookkeeper analyzes historical data and examines it to provide context.
Tax management, where tax accountants prepare your return and analyze your tax strategy each quarter.
Trust accounting, to keep tabs on client funds that are held in trust.
Choosing an outsourced accounting services partner can feel like a roll of the dice, but with proper due diligence to understand how prospective partners operate and what they offer, you could find your perfect match. Do your homework!
Enhance Your Law Firm with Accounting That Works
Whether you want to avoid burnout, refocus on your clients, support your firm's growth, or just need to put your best foot forward, expert accounting can help you elevate your law firm. Turn to Ignite Spot for outsourced accounting services you can trust. Explore our accounting and bookkeeping services to see if we're a fit!