If you’re a law firm, choosing the right accountant is essential to your success. An accountant can help you manage your finances and keep your business running smoothly, but with so many accounting firms, it can be difficult to select the right one for you. Here are seven tips for choosing the right accountant for your law firm:
1. Examine Their Experience
When choosing an accountant, it’s important to consider their experience. Make sure they have experience working with law firms and know the ins and outs of accounting for a business like yours. Ask them about their past clients and what type of work they’ve done for them. This will give you a good idea of whether or not they’re the right fit for your law firm.
If you’re looking for a more specialized accountant, like one who specializes in tax law or estate planning, make sure they have the appropriate experience and credentials. For your business to run smoothly, you need to understand that accounting for a company in the tech industry will be much different than accounting for a law firm. The experience will matter, especially as it pertains to audits.
2. Legal Structure
The structure of your company will affect how you do your accounting; for example, accounting for a partnership (which most law firms are) will be different from accounting for an LLC (Limited Liability Company). The main reason for the difference will be regulatory practices.
If you are a law firm with a CFO (Chief Financial Officer), the accountant you choose should be able to handle the financial data a CFO provides. Accounting for lawyers is different because of the various legal structures a law firm can take. The point is that the legal form of your business can affect how you do your accounting, and it is best to choose an accountant who understands your firm’s legal structure.
3. Company Needs
Every law firm is different, and no single law firm has the exact accounting needs as another law firm. Before you even start interviewing accountants, you need to sit down and figure out what your company needs are. Be specific when describing what you’re looking for. This will help potential accountants better understand your needs and determine if they’re a good fit.
Consider the type of accounting services your firm needs. You may need someone to assist you with tax accounting, or you may want someone to help you update your daily accounting practices to industry standards. It’s also important to consider the size of your company. If you’re a smaller law firm, you may want to consider an accountant who specializes in working with small businesses.
4. Control
One of the most important things to consider when choosing an accountant is how much control you want to retain over your finances. Some accountants take a more hands-on approach and want to be involved in every aspect of your business. Others will let you handle most of the day-to-day financial decisions.
With this in mind, you can narrow down your search to accountants who will fit best your company’s needs and preferences. The interview process is a great opportunity to ask the accountant about their control style and get a better idea of how they would work with you. Sometimes, the accountant will be more willing to compromise if they think it’s in the best interest of your business. It’s important to keep an open mind and be willing to negotiate.
5. Ask Around
Do some research and ask other business owners for recommendations. If they’ve had a good experience with an accountant, there’s a good chance they’ll recommend them to you. Word-of-mouth is often the best way to find a good accountant. Ask around your network of colleagues, friends, and family members and see if anyone has a good recommendation. You can also check online review sites like Yelp or Google Reviews to see what other people have had to say about an accountant.
6. Fees
When it comes to fees, you’ll want to be sure to ask the accountant about their rates and what services they include in their fee. Some accountants charge by the hour, while others have a flat fee for all of their services.
Be sure to get all of the details in writing so there are no surprises down the road. It’s also important to be aware of any hidden fees an accountant may charge. For example, some accountants may charge a fee for issuing tax returns or preparing financial statements. So be sure to ask about all of the potential fees an accountant might charge. The price will vary depending on numerous factors such as the nature of the job, the workforce necessary, resource use, and others.
You should compare fees between all possible accountant hires before committing to one. An accountant is supposed to help you manage your business finances, and the last thing you want is an accountant bill you cannot afford.
7. Timing
Large law firms handle enough business to require a full-time accountant on their staff or to outsource the work. Most small law firms don’t generate enough business to need a full-time accountant. When hiring an accountant for your law firm, consider if it is the right time to do so.
If you think that your firm could gain from having more regular financial reviews and updated accounting, feel free to hire an accountant whenever you want. However, most law firms only need to fix their books before audit season or twice a year for maintenance. Hiring an accountant at the right time will help you save a lot of money and avoid paying for one when you don’t need them.
When it comes to finding the right accountant for your law firm, it’s important to do your research and ask the right questions. By following these tips, you’ll be sure to find an accountant who can help you manage your finances and keep your business running smoothly.