Be prepared for the worst case scenario, no matter how remote the possibility of it happening.

Starting and running a law practice is a tough thing to do. There are many hats you need to wear as you are not only the person running your practice, you are likely the person delivering your legal services.

As such, you need to surround yourself with the right team of outside professionals to ensure your long term success.

Starting your own law firm can be exciting. It can also be a bit overwhelming.

In this article I will review a few of the things you need to keep in mind, or actually do, when you start your law firm.

More small businesses and law firms are discovering that they can save a great deal of time and money by outsourcing key functions to outside firms, such as accounting firms. Does this mean that outsourcing is always the best option? Not necessarily, says CPA Ann Irons. Before you decide whether to outsource certain tasks, learn as much as possible about what is available and what to look for.

The end of the year is fast approaching, and you’re most likely in one of two camps: Either you’ve been diligent in your collections, or you are just now realizing that you have hundreds, even thousands of dollars in fees billed but not collected. Ouch. Ann Irons, a CPA in Holliston, MA who offers accounts receivable services for businesses and law firms, explains that waiting until the last minute can have serious implications for your finances.

As an accounting professional servicing real estate law practices based in Holliston, MA, CPA Ann Irons has learned a great deal about what works and what doesn’t in her clients’ day-to-day financial functions. She has also worked with clients who learned the hard way the challenges of managing changes in accounting requirements and performing reconciliations of trust accounts. Outsourcing payroll, accounts receivable, and accounting functions to a professional accountant is one of the most effective ways to make daily operations more manageable. Otherwise, consider these pointers.

In an earlier post, I introduced the sole proprietorship as an option for establishing a law practice.

If you’ve decided to structure your practice in such a way that you are the sole owner, your next decision is whether to use cash-basis or double-entry accounting to keep track of your revenue and expenses.

Now that you’ve earned your law degree, it’s time to make one of the most important decisions of your career: Should you go solo and build a new practice from the ground up, partner with a fellow attorney, or secure a position as one of several attorneys at a larger practice?

Financial matters are a major source of contention among clients of real estate lawyers, whether it’s a dispute over property values, damages, or purchase prices.

To better serve your clients, you must be able to argue convincingly on their behalf. One way you can do this is by working with an accounting expert to strengthen your case.

Look for the Right Qualifications

Good: A generalist accountant with several years of professional experience can help explain key accounting and financial concepts in a way that is easily understood by non-accounting professionals, including clients, jurors, witnesses, and other experts involved in the case.

Better: A certified public accountant (CPA) with comparable experience. Why choose a CPA? For one thing, CPA candidates must pass the Uniform Certified Public Accountant Exam, a rigorous examination covering a broad range of accounting and financial topics. A CPA must complete extensive continuing education credits to remain in good standing and must also fulfill strict guidelines set in place by the state in which they practice.

Best: Your best bet is to enlist the services of a CPA who has specialized experience and expertise in an applicable field—in this case, real estate law practices.

Attorneys, including those who specialize in real estate laws, should have a basic understanding of generally accepted accounting principles, or GAAP, to ensure that their clients meet all contractual provisions.

However, it takes more in-depth knowledge and experience to protect lawyers and their practice from problems arising from irresponsible or inaccurate accounting practices in daily operations.

With only a few months remaining in the year, it’s time to take a closer look at how much you’ve earned thus far. Of that, how much have you actually received?

At the office of CPA Ann Irons, a legal accountant in Holliston, MA, we see attorneys scrambling to collect unpaid fees before the end of their yearly accounting period. Unfortunately, this approach can be time-consuming and devastating to the financial health of your firm.