Legal process outsourcing has become a substantial cost-saving measure for law firms. Today, instead of hiring internal resources to take on specific legal tasks, experienced outsourcing companies have begun taking on these services. As a result, outsourcing can not only help lawyers get ahead but save them money in the process.
Yet, even with all these benefits, many law firms are still hesitant to take this jump and start outsourcing their back office. This is often because they are not sure what services they are allowed to outsource or how this process can help them in the long run. That is why, in this post, we will talk about one of the more critical tasks that many law firms have recently started outsourcing — trust accounting. We hope with the below information, you will have a better understanding of what this task actually involves and how Back Office Legal can take on this service and start helping you build a more profitable practice.
Trust accounting is essentially the need to keep track of client funds and keep them away from the law firm’s operating funds.
Although, conceptually, the principle of trust accounting is relatively straightforward — keep money that is not yours in a separate account so that you do not spend it. In practice, however, it gets much more complicated, especially when attorneys deal with banks that are unclear on these rules or staff that are not as detail oriented as they should be when it comes to these essential accounts.
While outsourcing can be a cost-effective and efficient solution, allowing you to delegate tasks that take up too much time, such as bookkeeping and accounting projects. It is important to find a company that has the experience and knowledge to take on these tasks and specializes in working with law firms.
You should also look for a company that is known to provide their clients with top-notch services and can help these firms with various back office issues and duties such as:
In addition, because accuracy in trust accounting is so vital, this outsource company needs to be detail-oriented and capable of reviewing client ledgers, deposits, and anything else in a trust account, while still ensuring these accounts are appropriately managed.
As a law firm owner, it is up to you to ensure that all aspects of your firm are handled properly and that your accounts are up to date and accurate. Even a simple mistake with a trust account can lead to bar sanctions, bar complaints, and other consequences that can impact your livelihood and future.
Fortunately, when you work with an experienced outsourcing trust accounting company, you will no longer have to worry about these issues. For instance, when you outsource your trust accounting to Back Office Legal, you can rest assured that your records and finances will remain accurate and comprehensive.
In addition, when we take over your trust accounting needs, we can also:
If you are considering outsourcing your trust accounting or would like further information regarding these services, contact Back Office Legal today and let our team show you how we can help you and your firm.