26
Sep

Why outsource legal costs accounting

 

Legal costs accounting can eat up a significant chunk of time and expense for a law firm. Many law firms are not in a position to hire extra staff to cover these roles, taking on the workload themselves which can be particularly draining on a small to medium-sized business.

 

An effective solution to this financial challenge is to outsource your legal costs accounting to an experienced provider. This strategy promotes your company’s growth by allowing your team to devote increased focus on core activities and goals.

 

Key Benefits of Outsourcing Your Legal Costs Accounting

Despite the increased availability of sophisticated accounting software, a legal firm can rapidly be overwhelmed by the time and resources required by the complexities of legal costs accounting. And with the cost of adding a costs accountant with expertise in this area, outsourcing your legal costs accounting is a sensible solution for many businesses. Below are 5 key benefits of outsourcing your legal costs accounting:

 

1) The positive effect on your bottom line can be impressive.

Firms typically save between €50,000 and €80,000 by not paying to hire an in-house legal costs accountants or legal costs executives. Saving this amount of money can make a big difference to a firm’s profitability.

 

2) Your legal costs accounting issues will be handled quickly and efficiently.

Timing is critical for firms that regularly face deadlines. By outsourcing your legal costs accounting needs, you will receive a guaranteed completion date for services provided. In fact, with a dedicated staff member, the first stage of drafting Bills of Costs will occur within 5 days.

 

3) You only pay for the services that you require.

Full-time in-house legal costs accountants are typically paid an annual salary. They are compensated for their time even if there are long periods of time when their services are not needed. By outsourcing your legal costs accounting, you only pay for services that are rendered. Fixed fee payment arrangements allow your company to enjoy a return on investment that is superior to that of hiring an in-house accountant.

4) Legal costs accounting issues are handled by industry experts.

By outsourcing your legal costs accounting needs, you will enjoy the increased peace of mind that comes from knowing that a trained specialist is handling your needs. In many cases legal costs accounting firms have a better understanding of billing and accounting software used to prepare a client’s bill of costs or any other documents required. The probability for errors is virtually eliminated and your needs will be addressed by seasoned cost accountants with a strong understanding of planning matters, personal injury, negligence, PRTB matters and other key areas. Additionally, outsourcing your legal costs accounting means that a trained industry specialist will ensure that your company does not violate any new compliance standards or government regulations.

 

5) Your legal firm will have more time and resources to devote to core responsibilities.

‘Time is money’ and like any business this is a resource that cannot afford to be wasted. Outsourcing your legal costs accounting frees up time and resources that can be devoted to building up your client relationships, or other duties such as new business development and marketing. Additionally, outsourcing firms may be able to save you additional time by providing a host of other related services such as arbitration, file handovers, client billing and Section 68 forecasting.

 

 

Seeking the Services of an Experienced Legal Costs Accounting Provider

By enlisting the support of an outsourced legal costs accounting provider, your legal firm will save time and resources. An industry expert will handle all of your legal costs accounting needs quickly and thoroughly, protecting you from the harsh penalties that may result from failure to keep current with newly introduced laws and industry regulations. An experienced provider such as Lowes Legal Costs Accountants can help your business thrive by handling your legal costs accounting needs. With over 40 years of experience, their team of experts is ready to serve as your trusted resource for legal costs accounting services.

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