Why Hiring A CPA Is Critical For Law Firm Success
Whether you are a part of a large national firm or a small local boutique, you inherently understand the importance of a specialization. You’ve spent years in school and life perfecting your craft, which includes a thorough understanding and application of the law in your relevant practice area. Just as you may consult your clients to engage experts where appropriate, so too is it important for you and your firm to focus on the best and highest use of your time. Do you think your time and energy is best spent performing strategic planning to minimize tax implications? Or is it best spent focusing and addressing the needs of your clients? The answer may be obvious.
Here are 5 of the top reasons to hire a CPA to assist you and your law firm:
1. Client/Case and Firm Cash Flow – This is where your CPA can pull double duty. Producing regular cash flow analysis to understand and report on the firm’s financial wellbeing can ensure that your firm has longevity and addresses issues when they arise and when they can be fixed. This is especially critical for firms that take a large volume of cases on contingency. Law firms that have not analyzed the hard costs of a long-term case may find themselves cash strapped and unable to provide for basic operations. A CPA with experience related to law firms can provide the expertise to ensure that your firm is financially healthy month-to-month and year-to-year.
2. Control –A CPA firm with law firm expertise knows how to advise on treatment of partner and associate compensation, partnership setup, and can establish and maintain proper accounting for IOLTAs. They can support strategy around accounts receivables and settlement issues to ensure that the firm’s cash flow remains strong.
3. Compliance – Financial compliance in the legal world can be amorphous, complex, and ever-changing. Your job is often to get your clients out of hot water, and to make sure you aren’t turning around and putting yourself right back in the boiling pot. A licensed CPA can advise and guide you on the proper reporting and keep track of deadlines so you don’t miss a beat.
4. Time is Money – Ultimately, hiring a CPA can provide you with peace of mind, giving you accurate and timely information about the health of your firm and the guidance to know that your compliance requirements are met. Hiring a CPA allows you to focus on your craft and what’s most important to you.
Grobstein Teeple LLP is honored to work with some of the best and brightest legal minds in the country. It’s our job to make sure that the firm’s financials are accurate and timely. Make sure you’re consulting a CPA firm as you start to grow or sell your firm. We welcome an opportunity to work with you and discuss how hiring Grobstein Teeple LLP can be of immense benefit to you and your firm.