When the time comes to consider outsourcing the accounting services of your business, naturally you’ll have some concerns about what this can mean for you, both in the short and long term.
After all, change can bring risk, so you need to be confident that the strategy you implement will be worth it. Speaking to third party experts about outsourcing your account services should reassure you that the impact will be beneficial on your business moving forward.
Some law firms worry that outsourcing their accounting services to a third party could have a detrimental impact on the business. But in reality, the truth makes for a much more pleasant read.
Outsourcing doesn’t mean you’ll lose control of your cashiering services, in fact it’s the opposite. Firms are able to gain a greater understanding of what is going on with regards to their management accounts. This in turn brings even more insights as third party experts are able to help the firm identify:
- What area(s) of the business generate the most revenue
- What area(s) of the business bring in the most money quickly
- What area(s) of the business aren’t profitable
- Where money is being spent and the return on investment
- Area(s) of growth
These insights help your business to run efficiently and continue to grow, while some of your competitors lay still in the water.
Outsourcing doesn’t have to be costly and can often save you money and more importantly fee earner time. Companies offering outsourcing accounting services are experts and have streamlined processes to ensure maximum efficiency. Furthermore, they understand best practices which can be passed on as additional savings to you. So, as you can see, the impact of outsourcing a law firm’s accounting services to third party experts has a positive effect on the way the business can grow and thrive.
With the introduction of more stringent Data Protection Laws and the General Data Protection Regulation (GDPR), ensuring data security is paramount these days. Throw into the mix that thousands of criminals are attempting to hack into law firm IT infrastructure, then your concern regarding the impact outsourcing would have would seem justified.
However, third party experts have this area covered too. They have the policies, procedures and technology all in place to ensure that any data they handle is safe and secure, away from the prying eyes of those who wish to exploit it.
Won’t outsourcing make managing cashiers harder? You may think this is the case, but it couldn’t be further from the truth. The right outsourced legal accounts third party will remove that burden.
So, we originally wondered what the impact of outsourcing law firms accounting services to third party experts would have. Hopefully we have shown that it needn’t be doom and gloom. In fact it can have a positive impact on your business, helping it to grow and adapt in a changing legal sector, by enabling solicitors to run their businesses better and to earn fees. The experts will identify areas of focus and working together you can help expand your business whilst working efficiently and effectively.
Here at The Cashroom, our experienced team can be on hand to unburden busy law firms by-
- Helping firms to prepare and then monitor performance against annual budgets
- Producing cashflow projections
- Conducting fee and performance analysis
- Providing commentary and advice on monthly performance
- Preparing for year-end accounts
- And more…
If you are considering outsourcing your law firm accounting and would like some more information about how The Cashroom can help, please get in touch.
If you are regulated within the English and Welsh market then please contact:
Alex Holt E: firstname.lastname@example.org t: 07817 420 466
If you are regulated by the Law Society of Scotland, please contact:
Gregor Angus E: email@example.com t: 07875 598 593