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Law Firm Accounting: Outsourcing Lightens the Load

Posted by Ann Irons, CPA

Dec 18, 2014 10:12:00 AM

ai-outsourcingMore small businesses and law firms are discovering that they can save a great deal of time and money by outsourcing key functions to outside firms, such as accounting firms. Does this mean that outsourcing is always the best option? Not necessarily, says CPA Ann Irons. Before you decide whether to outsource certain tasks, learn as much as possible about what is available and what to look for.

Examples of Outsourced Business Functions

In the past, the type of function that could be outsourced was generally limited to bookkeeping and accounting. This is no longer the case, and business owners and lawyers now have a variety of options. Examples of these include information technology, risk management, web design, reception, and digital marketing. Accounting and bookkeeping services are still available, as are accounts receivable, accounts payable, and payroll. Some businesses even hire an outside company to perform such tasks as data entry and opening mail.

Are We a Good Fit for Outsourcing?

To determine whether you are ready for outsourcing rather than tackling it on your own, you’ll need to answer the following questions:

Do our employees have the knowledge and ability to perform this function well? Note the last word: well. Managing your payroll may be within the scope and ability of your staff, but are you confident in the quality of their work and the depth of their knowledge? Even a minor error or omission can derail a project, which is more likely when someone is completing a task with minimal knowledge and experience.

Are we sufficiently efficient to perform this task? You may be able to balance the books if given several days to complete the work, but this is not always feasible. When the work outpaces the worker, it is easy to fall behind in the task at hand, as well as any other tasks ordinarily performed by the employee.

Could this be accomplished in a more cost-effective way? Time is money. If you answered “NO” to the previous question, you must consider the cost implications. This is particularly relevant for companies and practices that pay hourly wages rather than salary. If you must pay for several hours’ work, it may be best to look outside of your business for help.

How does this impact our core business? Your business is the area in which you use your resources most effectively, as well as where you have the most opportunities to create long-term value. For example, a lawyer meets with clients and solicits new business. These are core business functions for which the lawyer’s direct involvement is essential. Opening mail and recording payments in the ledger? Not so much. Consider outsourcing.

About Your Holliston, MA Accountant

Is your real estate law firm considering outsourcing in Holliston, MA? To learn more about outsourced accounting, payroll, and administrative services, or to schedule a meeting with Ann Irons, CPA, LLC, contact us at (508) 966-0700. We serve individuals, businesses, and foreign investors based in Holliston, Worcester, Woonsocket, and the surrounding areas.

Topics: Accounting for Lawyers

About Ann M. Irons, CPA LLC

ann_irons_head_shotAnn spent over 25 years in the financial service industry, gaining knowledge and experience that allows her to provide an array of tax, bookkeeping, and accounting services for her clients. Relying on a stringent code of ethics and a dedication to maintaining the highest industry standards, Ann works hard to ensure her clients receive the quality service they’ve come to expect. A member of AICPA and MSCPA, Ann has also had an article featured in the renowned publication, Banker and Tradesman. 

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