Prepare to thrive during tough times
There is no point burying our heads in the sand and ignoring that times are tough – we can in-fact prepare and thrive in another recession. As well as previous recessions, the last few years have been pretty rough, but this means that law firms now have resilience and confidence they possibly did not have in the past.
Many of you may or may not know that Cashroom was born in the 2008 recession. Founder Catherine O’Day was asked to help law firms who wanted to ensure compliant legal accounting and that the only staff the employed were their fee earners. It was clear to many firms back then that having compliant accounting and good management information was something they needed but could outsource. Over 250 UK law firms now work alongside Cashroom accountants and legal cashiers to do this. During the turbulent times we now find our country in, law firms are thinking again about how to survive.
A lot can go badly wrong when it comes to accounting in law firms – especially if you put your accounting on the back burner even if you just plan to do it over a few months.
A lot of areas of the law are what could be called ‘recession-proof’ and some legal services will always be needed regardless of the economy. Some problems are multiplied, and work becomes even more plentiful for some during a recession, for example family and criminal lawyers are likely to be as busy as ever. Good financial data is just as important for these firms, to allow good planning for sustainable growth.
So, some areas of the law are not going to do as well but firms where there may be financial problems need good financial data more than ever – this is not the time to scrimp on good accounting. Firms must strategically allocate resources to be prepared e.g., marketing spend, staffing costs, overheads. A professional legal cashier and accountant can help you manage your firm’s revenue and ensure your firm’s financial transactions are handled ethically and accurately.
If you are the owner of a law firm, you should care about accounting for law firms and legal bookkeeping—a lot. Why?
To ensure your firm’s financial statements are accurate, complete, and up to date, you need an excellent legal cashier or cashiering team.
Your firms’ financials should be handled in your firms’ best interests. Keeping your firm’s accounts in order may not be glamorous. But having up-to-date and accurate records and professional accountants experienced in accounting for law firms is key to unlocking law firm growth and financial success for your practice.
Effective accounting for law firms is critical to your firm’s success. So be prepared, it’s likely going to be a bumpy journey ahead, but with the correct planning from good data your firm can ride out the rough road ahead.
To find out how we can provide accounting services for your law firm, please email Daniel.jones@thecashroom.co.uk or call 07949 177 952.
About Cashroom
Cashroom provides expert outsourced accounting services for Law Firms including Legal Cashiering, Management Accounts and Payroll services. Our mission is to free lawyers from the complexities of legal accounting by supporting the industry with accurate management information and allowing lawyers to do what they do best – practice law.
We’ve been with Cashroom for quite a few years now, and I would never go back. In any business, and particularly in times of uncertainty, it’s important to control your costs, and that’s exactly what you help me do.
