When it comes to practicing law, we tend to think of grueling cases and extensive research. However, law firms are businesses, and, as such, it’s crucial to dedicate time and resources into the financial side of things. Having a qualified CPA on the team is necessary to ensure the firm is able to successfully operate, and there are more ways they can help the law practice than often meets the eye. We’ve highlighted some of the ways we add value and financial discipline for law firms in California:
Your CPA can make life easier because they have all the current forms available to track accurate financial positions of businesses and, in matrimonial cases, spouses. This gives your legal team a true and realistic look at finances to better assist clients. Among the value estimates they can make include those on:
- Real estate
- Bank accounts
- Income tax returns
- Total assets
Making Sense of Misleading Information
In order to best protect your clients, it’s up to your firm to interpret settlement jargon as it’s often worded in a way to put a positive spin on terms that aren’t in their best interest. While the misleading wording may not always be intentional, it can be easy to fall into when you don’t have a qualified CPA available to accurately translate the true nature of the terms before agreements are made.
Analyzing Cash Flow
Adequate cash flow is crucial when it comes to the opponent’s ability to pay your client the maximum amount, and it’s important to have a good understanding of what they’re working with financially. Your CPA is able to analyze their cash flow to increase the odds of a full recovery. Not to mention, they can also keep tabs on the daily cash transactions of your firm.
Crucial Tax Assistance
Tax laws can get confusing and time consuming, and you and your employees have clients to serve. That’s why you should leave the complications of taxes up to your CPA. They can ensure you stay within legal compliance.
Life in a law office can become hectic, and your CPA can help manage that. Among the areas in which they can help include:
- Tracking of employee compensation
- Tracking of expenses
- Management of disputes arising between partners
- Management of retention issues
- Maximizing collections and billable hours
- Management of trust accounts
Finding Skilled Professionals You Can Count On
Whether your firm is in need of a qualified CPA or changes are being made with your current staffing, the steps you take will be crucial to the future health of your practice. It takes careful consideration to ensure you get the right team for the job as you understand the vast array of responsibilities they’ll be taking on. By visiting our CPA for Law Firm’s page, you can take advantage of a free consultation to guide you in the right direction to improve your practice’s financial performance and overall profits.
- 16 Oct, 2015
- Pogosian CPA
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