For legal professionals, time is a precious resource. Spending hours each month doing work inefficiently costs money and distracts from the core focus on clients and profitability. That, in a nutshell, is why so many attorneys and law firms choose to outsource their accounting functions, but there are different considerations for different firms.
Where do you need support?
Sometimes all an attorney or small firm needs is assistance with bookkeeping or other basic accounting functions, such as paying bills, issuing invoices, and recording receipts. Outsourcing some or all of these back-office responsibilities frees staff from mundane tasks. It also provides added flexibility when the firm grows, since adding more back-office staff requires a lot of time and resources whereas outsourcing firms can scale easily.
Other attorneys and law firms have the bookkeeping and accounting solutions they want, but they need an experienced CFO to provide financial management, including reporting, cash management, negotiations, capital allocation, investment analysis, and strategic guidance.
Many in the legal profession find that it’s best to outsource all of their accounting functions, from bookkeeping to CFO, which reduces the hassles of employment and provides agility during business swings.
Benefits of outsourced CFOs
As mentioned, hiring an in-house CFO is an expensive proposition, so many small law firms and attorneys to outsourced, or fractional, CFOs. In addition to providing a valuable outside perspective, bringing in an outsourced CFO enables employees at the firm to stop focusing on financial details and instead devote their valuable time to high-level decision-making and management.
An additional benefit of outsourcing CFO responsibilities instead of hiring is that an experienced, fully vetted CFO can be brought in quickly, without having to go through a time-consuming and expensive recruitment process—especially in a tight job market. Flexibility is another significant benefit, as fractional CFOs can provide the precise level of support attorneys and firms need, whether part-time or on a contract basis, using the latest technology.
Get expert support
Insero & Co. is a public accounting firm with decades of experience working with law firms and other businesses of all sizes. We provide a full range of outsourced assistance, including bookkeeping and accounting, controllers and accounting managers, and CFOs. Contact us to discuss building a custom package of services to meet your needs.