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The Simplest Way to Run a Profitable Law Firm

Posted by Ann Irons, CPA

Jul 17, 2014 5:05:00 PM

real-estate-expensesCut your expenses. It sounds obvious enough, so why do so many real estate law offices fall short of their profit potential? The self-defeating practice of ignoring expenses isn't limited to firms that are in deep financial distress. We also see it in firms that are profitable but complacent. Ann Irons, a CPA who provides accounting services for real estate lawyers in Bellingham, MA, explains how small and solo practices benefit from cutting fixed expenses wherever possible.

Consider Non-Traditional Office Spaces

A practice with several attorneys and employees usually requires a fixed location and significant square footage, but their smaller counterparts have increasingly embraced other options, such as shared office space. With this arrangement, also called a "part-time office," you share the space with others, occupying it during your appointed time. Suppose you have a solo practice and two full-time employees, and each of you has your own office within the space. How much are you spending in rent each month? Do you really need a reception area, a conference room, and a kitchen? Not likely. You could operate just as effectively in a space the size of a two-car garage, but good luck finding a space that small available to rent on a full-time basis.

Reduce the Number of Full-Time Employees

The expenses associated with full-time employees aren't limited to hourly wages or salaries. You'll also be responsible for covering the cost of health care coverage, payroll taxes, and worker's compensation. Vacation pay and sick days add up, too. Paying two part-time employees instead of one full-time employee is a smart strategy for small or recently established practices.

Outsourcing to Save Time and Money

Regardless of whether you opt for full-time or part-time staff, you can cut your costs by outsourcing various business functions. For example, our clients rely on us to handle their payroll, accounts payable, bookkeeping, and even to open their mail. We've also seen practices that have had success outsourcing their website maintenance, receptionists, and search engine marketing.

Questions about your law firm's financial health? To learn more about our services, or to schedule a meeting with Ann Irons, CPA, LLC, contact us at 508-966-0700. We work with individuals and businesses in and around Woonsocket, Bellingham, Milford, and Boston.

Topics: Small Business Accounting

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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