Is bookkeeping really a 'pain-area' for small businesses, law firms and attorneys? If yes, why?
Answers
Law firms have a lot to manage: litigation, clients, advertising, networking, administration, accounting, etc. However, big law firms can afford to hire an in-house team for each task, but things are quite tricky for small law firms and solo practitioners as they always face budget constraints. Besides, all the functions, bookkeeping is something that is entirely different from legal, yet essential to manage.
That’s the reason bookkeeping is the most painful part as they are not accountants by profession. In many cases, many law firms do not take bookkeeping seriously because they simply think it is not important for developing their business. But the real challenge begins during tax season, wherein all your transactions should be accurately recorded. Overlooking this part of the firm, lawyers face last moment hustle, which eventually leads to penalties.
Below are some of the reasons why bookkeeping is painful for lawyers:
• They cannot differentiate income from revenue
• Tracking money flow is important, but time-consuming and labor intensive
• Workload Balance: A challenge to distinguish bookkeeping chores and responsibilities
• Employing: Finding experienced bookkeepers, providing them the required resources like training, technologies, etc.
For all these problems taking assistance from virtual legal assistants is a suitable solution. Outsourcing bookkeeping tasks to experienced accountants help law firms to efficiently streamline the entire bookkeeping process, saving time, money and efforts.