Why Would A Small Law Firm Need a Bookkeeper?
“With a staffing footprint of only a few attorneys why do I need a bookkeeper?” It’s a question I’ve heard a lot over the course of my career. Many lawyers who work in small firms don’t see the benefit of relying on external expertise to keep their books organized. Unfortunately, many of those same lawyers eventually come around to a different way of thinking only after something bad, or even catastrophic, happens with their accounts.
Stay In Your Lane
Between your undergraduate degree, your law degree, and your articles you’ve spent the better part of a decade training to become an attorney. Did you really spend all that time, money, and effort in order to slave over your books? Most lawyers we know want to spend their time practicing law, not practicing on accounts. There’s a reason that we don’t expect doctors to prepare our taxes, or accountants to deliver our babies. It’s not what they’re good at. As a lawyer, you’re good at arguing cases and making deals. Keep life simple and stick to that.
Efficiency
Similar to the argument that you should stick to what you’re good at is the argument that you should stick to what you’re paid to do. Billable hours are the lifeblood of any thriving practice and, while hours spent bookkeeping may be conducive to a good night’s sleep, they are certainly not billable. It’s important to keep in mind that every hour you spend dealing with the administrative work of your firm involves significant opportunity costs in the form of foregone billings.
High Stakes
When it comes to a lawyer’s practice, nowhere are the stakes higher than when dealing with your trust accounts. One slip and you could spend months tied up with your state bar or law society. Even worse, if those same regulatory agencies find that you didn’t take all reasonable steps to protect your clients trust money, your license to practice law could be in jeopardy. It may be difficult to explain to an auditor that, while the security of your clients’ funds was foremost in your mind, you didn’t bother to take the simple step of hiring a bookkeeper to keep an eye on your accounts.
Peace of Mind
A lawyer’s life is stressful. Difficult clients, judges, counsel, and partners can all take a toll on one’s mental health and wellbeing. There is no reason to add to that by taking risks with your books and causing the added uncertainty to hang over your head as you’re trying to get to sleep at night. In addition to being an invaluable professional resource, a good bookkeeper can provide peace of mind. By keeping a professionally-trained eye on your books, you can be assured that, not only are you looking after your firm, you’ve got skilled backup in your corner.
At the End of the Day
At the end of the day, it pays to make the right choice. Don’t waste time. Don’t waste money. Don’t take unnecessary risks. Finally, don’t lose sleep. Hire a talented bookkeeper and focus on what you do best.