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4 Stages Law Firms Go Through Before Realizing They Need Accounting Help

28 Feb 4 Stages Law Firms Go Through Before Realizing They Need Accounting Help

Posted at 08:30h in

Outsourcing, Virtual Accounting

by KYB Blog  •  0 Comments

accounting help for law firms

Are you juggling your law firm’s bookkeeping in addition to your core job responsibilities? Many lawyers are in this position, and it can quickly become a struggle to keep operations running smoothly while staying focused on serving your clients. Maybe you’re already there, thinking something needs to change — and fast. Or maybe you’ve got it under control… but it does seem like a breaking point is on the horizon. Either way, you’re not alone.

Every firm’s story is different, but there are a few common stages law firms go through before they seek accounting and bookkeeping assistance. Learn more about each stage below and consider which description sounds most like where your firm is right now.

Stage 1: Confidence

When your law firm is just starting out, you’re running on big dreams, bright ideas, and a lot of confidence. This leads many lawyers — in an effort to keep startup costs low — to tackle their own accounting and bookkeeping. How hard can it be? You’re probably already taking on many of the other responsibilities in your business, like office management. So, what’s one more task? While this confidence is admirable and can get you far in your profession, it can also get you in a bind when you’re managing the accounts for your firm on your own.

Stage 2: Pressure

Now your firm is growing. You have an expanding list of clients and your caseload is increasing by the day. With this increase in business comes a few growing pains, including the need to hire, an increase in paperwork, and greater complexity in your accounts. While growth is always the goal, it’s becoming more and more difficult to manage everything on your own.

Although you still might be able to manage your accounting and bookkeeping responsibilities yourself, there is mounting pressure.

Stage 3: Stress

You’ve hit your breaking point, and it’s clear that you can no longer keep up with your firm’s accounting needs. As the pace of business speeds up, you’re probably shuffling around some of your actual job responsibilities to handle your books. Less time with your clients. More time in an area outside of your expertise. Soon, due to a lack of dedicated resources, problems will start cropping up, like bill and collection discrepancies or compliance issues.

Something has to change for your business, and soon. The work your firm is doing will continue to suffer until you figure out a solution.

Stage 4: Optimism

In an effort to find a solution, you’ve found something else, too: optimism. You’re looking into remote solutions from providers who get law firms and understand trust accounting, and you realize there are answers that can make operations more efficient and profitable. You can take a deep breath and realize that, while you’re not out of the woods yet, you don’t have to continue working in a pressure-filled environment. And, with the benefit of a remote team, you don’t need to add overhead costs or additional management to your plate.

What Happens Next?

Once you’ve partnered up with a remote accounting expert for your law firm, you can hand off your books and get back on track. Most importantly, you can get back to doing what you love — practicing law.

Do you identify with confident lawyers who are just starting out and think they can manage their bookkeeping needs on their own? Or have you hit your breaking point and need a solution now?

Don’t wait until you’re at your wit’s end, if you’re not there already. Take steps today to ensure you’re equipped to successfully scale your business, and you’re not held back by managing your bookkeeping and accounting on your own.

Consultation with Keeping Your Balance

 

Topics: Outsourcing, Virtual Accounting