Financial Services for Law Firms

When it comes to legal matters, lawyers are your go to person. However, with respect to running law firms, they require the help of other professionals to keep the firms afloat. They may therefore require the services of marketing professionals, accounting and financial professionals as well as support staff. But what are the basic functions performed by professionals offering accounting for lawyers?

Extra information about accounting for lawyers

Preparing financial statements and keeping records 

As with all other businesses, law firms are required to maintain correct and accurate financial statements in accordance with different financial reporting and accounting standards. This is a function performed by accountants. This should be done on a regular basis to make it easier to make decisions relating to the financial aspect of the business.

Tax planning and filing

While lawyers understand and can accurately interpret the laws and regulations governing taxation in their state of operation. However, they still require accounting services in order to put it into practice. Accountants also file taxes on time and ensure tax payments are carried out as required for law firms avoiding fines, penalties and interest that can negatively impact the financial resources of the firm.

Day to day operational management

With respect to day to day operations in a law firm, accountants assist in the management of expenses. This requires attention to detail to ensure all incomes and all expenses are recorded correctly in the accounting books. They also cater for payroll processing and management and ensure that all matters concerning the financial well being of employees is catered for accordingly.

Financial advice and planning

Financial decision making is a sensitive issue for law firms that requires expert services. A seemingly simple financial decision such as paying employees poorly may result in devastating effects in the long term. During strategic decision making, accountants can help the management come up with projections for different scenarios as well as analyse the effect of these on the success of the firm.

Identifying the best accounting tools

There are numerous tools used to track and record financial expenditure, come up with projections, process payroll and other financial transactions. Choosing among these tools can be confusing for non accounting personnel. Accountants will identify the actual advantages and disadvantages of each tool and assist in identifying the most viable option.

Managing client financials

Sometimes, the law firm may be required to manage the finances or estates of their clients. This will require accounting skills and knowledge. This is in addition to coming up with compensation figures, settlement amounts and any other figure required to give their clients the correct legal advice.