Why Accounting Is So Important for Law Firms

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Why Accounting Is So Important for Law Firms
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• For busy law firms, staying on top of their
  accounts is essential for the smooth running of
  their business, and can help them not only
  continue to satisfy their clients, but to grow
  their business, too. Whether your law firm has an
  inhouse bookkeeper and legal accountant, or you
  choose to save money by outsourcing your
  requirements, youll only ever be able to make
  informed financial decisions for the benefit of
  your business, if you have an effective legal
  accounting system in place.

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• What type of accountant should law firms be
  using, and what will they do?
• Whether theyre inhouse or remote, a legal
  accountant will work closely with a bookkeeper to
  use the data theyve recorded as a foundation to
  build upon, and help your law firm grow. A legal
  accountant will analyze, interpret and summarize
  financial data, and prepare financial statements,
  financial forecasting and capture expenses.

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• Why is legal accounting so important for law
  firms?
• To get a full and complete picture of your law
  firms finances, and meet all of your clients,
  firms and state bars obligations, you need to
  make sure that your financial statements are
  accurate, complete and up-to-date, and heres
  why
• Compliance is key
• Being compliant with the ethics regulations
  specific to your jurisdiction, is paramount for
  every law firm, and while the rules differ from
  state to state, there are some accounting basics
  that all lawyers need to follow

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• The ABAs Model Rules of Professional Conduct
  outlines key responsibilities for lawyers with
  respect to the holding of funds in trust,
  recordkeeping, and notifying clients of the
  receipt of funds or property.
• There can be serious repercussions for any law
  firm found to be in violation of compliance
  regulations, such as mishandling client funds,
  whether intentional or accidental.
• While the responsibilities youre accountable for
  can vary according to the state youre practicing
  in, the repercussions can be serious and not only
  affect your reputation as a law firm, but lose
  you clients. In some cases, violating legal
  accounting rules can lead to severe penalties,
  suspended licenses or even disbarment.

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• Your business needs to grow
• You might be a practicing law firm, but in
  essence, youre running a business, and by hiring
  a legal accountant you can better collect and
  analyze information to make decisions for the
  future of your business that are driven by data,
  not guesswork. When you know exactly what is
  coming in and whats going out, you can more
  responsibly allocate resources to stimulate
  future growth.
• Your reputation could be at risk
• Any accounting mistakes you make within your law
  firm, are only ever going to reflect badly on you
  and your firm as a whole, and anyone involved in
  the industry knows that a lack of apparent
  professionalism can quickly lead to a loss of
  clients, referrals and opportunities for growth.

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• To ensure that your law firm is compliant at all
  times, and to give it the best chance of avoiding
  penalties while meeting all of your clients
  needs, hire a qualified legal accountant. To make
  the process even more convenient and affordable,
  consider outsourcing this service.

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• At Heyer Associates, we proactively assist our
  individual and small business clients in meeting
  their goals. Our key area of focus is ensuring
  that our clients remain compliant with federal
  and state tax laws by providing them with high
  quality accounting and tax services Miami. If you
  are looking for individual accountant in Miami,
  Heyer Associates would be a right option.