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Bookkeeping & Tax Planning Tips For Family Law Practice Owners

As a family law practice owner, it is understandable if you are more familiar with family laws than accounting principles. Still, you may find yourself doing the job of a family law practice CPA, especially during tax seasons. At the same time, you are still responsible for billing, family law practice tax planning, and other accounting tasks. These issues can leave you with less time to manage your operations, eventually affecting the quality of your services. Fortunately, there are a couple of ways you can fix this problem.

Staying Ahead Of Your Competitors With The Help Of Law Firm Accountants

As a growing family law practice, you can face different problems from various sources. With the advent of the internet, your competition can now come from anywhere around the world. It is no longer enough to be a traditional lawyer. At the same time, you have to provide clients a reason why they should choose you. One common example of these reasons is having a more competitive rate.

Being familiar with family law accounting principles can help you formulate prices that both maximize your profits without scaring away clients. Our family law practice accountants can help you with this task. Our knowledgeable team of family law practice CPAs have years of experience in cost accounting, profit & loss analysis, and pricing analysis that we can utilize to help us determine the ideal pricing structure for your firm.

Exploring other pricing methods can also give you an edge with potential clients. Besides hourly billing, you can try offering fixed priced, or hybrid billing arrangements. These two methods require less time to organize and account for your family law practice bookkeeping. A law firm practice financial adviser can help you find the best billing method for your company. They can consider factors such as the size of your organization, the type of clients you have and the number of services you offer when determining the method that best suits you.

Technological Advances In The Finance Industry

Most clients use electronic platforms when dealing with alimony payments, child support payments, or payments to your firm. So it is essential that you can learn and adapt these systems to offer convenience to your clients.

Traditional accounting methods, like Excel sheets or Word files, are things of the past. These platforms are no longer viable for financial activities like:

  • Profit splits for partners

  • Complex cash flow system stream

  • Billable staff

  • Client payments

Trying to do all of this using traditional tools is like trying to scoop the water out of the ocean with a five-gallon bucket. All you do is tucker yourself out and get frustrated.

Using the Right Tools for Your Law Firm’s Bookkeeping & Tax Planning

QuickBooks Online is a powerful tool that our team of experienced family law practice bookkeepers use to help our family law practice clients keep track of their bookkeeping. We do this because we understand the importance of you being able to record your billable times accurately. Some of the things Quickbooks let you do include:

  • Capture time and expenses from electronic time sheets

  • Organize expenses from vendors and create invoices

  • Track hours worked that you have not been paid for or that you have not billed

  • Monitor the financial health of your family law practice in real-time

We also utilize this software to help streamline the creation and execution of the family law practice tax planning strategies they create with clients. Our team of family law practice financial advisers has provided our clients more time to focus on actually practicing law and getting new clients as opposed to trying to balance their books. You can learn more about our services by clicking the button below to schedule a complimentary discovery call today!

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This blog article is not intended to be the rendering of legal, accounting, tax advice or other professional services. Articles are based on current or proposed tax rules at the time they are written and older posts are not updated for tax rule changes. We expressly disclaim all liability in regard to actions taken or not taken based on the contents of this blog as well as the use or interpretation of this information. Information provided on this website is not all-inclusive and such information should not be relied upon as being all-inclusive.