When is it time to Outsource the Bookkeeping for your Small Law Firm?
Updated: Oct 29, 2019
Many small law firms start their business with a bank account, a spreadsheet, and a vague idea of what bookkeeping means. But the task of maintaining a law practice as well as keeping track of the business’s finances soon becomes overwhelming and frustrating, costing you time and money. Knowing when to transition from taking care of the books yourself to hiring a professional can be tough, but there is never a better time than now to hire a great bookkeeper to take care of your business. Remember, you’re a lawyer, not a bookkeeper! And that’s ok!
Making these serious business decisions can be difficult, especially in the early stages of any startup. But don’t get bogged down by what you don’t know! Educate yourself on the benefits of hiring a bookkeeper as well as the potential consequences of waiting too long to act.
Benefits of hiring a great bookkeeper:
Your finances are accurate and up-to-date. ○ While it may be hard for you to find even an hour of time to work on your business’s books each week, your bookkeeper’s primary focus is on making sure your financials are current and that your bills are paid on time.
Expertise to keep your practice compliant ○ Owning a law firm comes with its own challenges, including a number of rules and laws that must be followed. A primary example of this is Client Trust Accounts. Hire a bookkeeper that specializes in working with law firms so you can rest easy knowing that you are in compliance.
Save money ○ Having a professional bookkeeper doing things right the first time saves your business money in the long run.
Free up your time ○ As the business owner, it is your job to grow your business and ensure that you are providing the best possible service to your clients. Having a bookkeeper eliminates a time-consuming task that takes you away from running your business.
Detriments of waiting too long:
Potentially costly errors ○ As mentioned above, you are a lawyer, not a bookkeeper – and that’s ok! Play to your strengths and allow your bookkeeper to do the same. Their expertise in your field will ensure that things are done correctly.
Wasted time ○ Your valuable time should not be spent laboring over the books and paying bills instead of working with clients and providing value.
Internal Fraud ○ Having a bookkeeper outside of your firm eliminates much of the risk of fraud within the business.
Here at Thrive Bookkeeping, we care about you and your law firm. Let us take the burden of bookkeeping off your shoulders so you can spend your time doing what you love!