Business Organisations and Accountancy Services

With so much to do and many transactions to be handled professionally, it is vital that a solicitor has a legal accountant. Below are reasons why accountants for solicitors are a necessity.

More information on accountants for solicitors

Just like any other business, law firms need accountants too. Even though we there are lawyers with accounting expertise, they too must have an accounting department in their law firms. This is regardless of the size of the firm, big or small, all law firms must have an accounting department. 

So, why is legal accounting important? There is so much involved when settling a client's case. This includes different of expenses, holding money in trust, and so much more. To ensure that the finances are well managed and nothing is wasted or squandered, a firm whether big or small needs to have a trained professional legal accountant.

- Compliance

Compliance on all levels should be the main priority for a solicitor and is a component for his or her success. You run the risk of incurring harsh penalties or even be disbarred if you are not compliant as a solicitor, making legal accountants and absolute necessity.

- Revenue

A law firm could end up losing money its clients or other parties it does business with due to money being wasted if its accounting is not managed properly. Therefore, for a firm to correctly manage and maintain its revenue, it is crucial that it employs the right legal accountant or legal accounting team.

- Continued success

A firm can only be able to build a solid reputation for running a practice that is compliant and ethical only if it has a good, solid legal accountants managing their revenue and ensuring that they are compliant. Apart from that, the operations of the firm will be done more intelligently because they will know what is working for them and what is not, therefore, allocating the resources to the right areas ensuring the firm's success.

Services Offered by Legal Accountants

There are a number of services legal accountants offer to solicitors. They include:

- Client Trust Fund Accounting

Solicitors often ask for a retainer before they begin working on a case. Even though they will hold this money, it does not belong to them unless a number of things that we will not dive in to happen. A legal accountant will ensure that the money is not wasted or lost.

- Accounting of Case Costs

Legal accountants manage the money spent on a case, ensuring that the law firm does not overspend or run into losses because of a case.