If you’re working with—or considering—a CPA for lawyers, here are key things you should ask for:
1. Can You Provide a 2024 Tax Liability Estimate?
By the end of the year, your CPA should be able to give you a clear picture of what your tax liability will be. This helps you prepare financially and avoid surprises.
Follow-up question:
“What assumptions are you making in this estimate?”This ensures they’ve accounted for all relevant variables, like expected revenue or pending expenses.
2. What Strategies Can You Offer to Reduce My Tax Bill?
Your CPA should proactively present options for minimizing your taxes. For instance:
Are there expenses you can accelerate into the current year?
Should you defer income to the next year?
Are you fully utilizing available deductions and credits?
3. How Do You Handle Trust Accounting Compliance?
Trust accounting errors can be disastrous for law firms. Ask your CPA:
“What safeguards do you use to ensure compliance?”
“How do you audit trust accounts to avoid mistakes?”
4. What Metrics Do You Use to Measure My Firm’s Financial Health?
A good law firm accountant will track more than just revenue and expenses. Ask them to provide regular reports on:
Cost per billable hour.
Profitability by case type.
Cash flow trends.
5. How Will You Help Me Plan for 2025?
Proactive CPAs work with you to create a tax and growth plan for the coming year. Key questions include:
“What changes in tax law might impact my firm?”
“How can I structure partner compensation to reduce taxes?”
“Are there any opportunities for retirement savings or other tax-advantaged strategies?”
What Happens When Your CPA Isn’t a Specialist?
Working with a generalist CPA may save money upfront, but it can cost more in the long run. Common pitfalls include:
Missed Deductions: General CPAs may not know about deductions specific to attorneys.
Compliance Risks: Non-specialists may not fully understand trust accounting rules.
Poor Financial Advice: Without industry insights, they might not provide useful guidance on profitability or growth.
If you’ve ever felt like your CPA doesn’t “get” your business, it might be time to switch to a specialist.
Benefits of Partnering With a Specialist CPA for Law Firms
A specialized attorney CPA isn’t just an expense—they’re an investment in your firm’s success. Here’s what you gain:
1. Financial Peace of Mind
Knowing your trust accounts are compliant and your taxes are optimized allows you to focus on practicing law, not managing finances.
2. Maximized Tax Savings
Specialist CPAs find deductions and strategies that others might overlook, reducing your tax burden.
3. Strategic Growth Support
A CPA for law firms provides the financial insight you need to grow sustainably, from hiring decisions to expanding your practice areas.
4. Year-Round Partnership
Unlike some CPAs who only show up at tax time, a law firm CPA works with you year-round to manage your firm’s finances and plan for the future.
When to Reevaluate Your CPA Relationship
If your current accountant isn’t delivering what you need, it may be time to reevaluate. Ask yourself:
Are they providing proactive advice, or are they reactive?
Do they understand the unique challenges of my law firm?
Am I confident in their ability to handle trust accounting?
Switching to a specialist law firm CPA could save you money, reduce stress, and help your firm thrive.
Take the Next Step
At Counsel CPAs, we specialize in accounting for law firms, offering tailored services that go beyond tax returns. Our expertise includes:
Bookkeeping for law firms to keep your records accurate and organized.
Tax planning and preparation to minimize liabilities.
Financial strategy consulting to help your firm grow.
Ready to experience the difference a specialist CPA can make? Schedule a free consultation today.
A CPA for lawyers isn’t just a numbers person—they’re a trusted advisor who helps you navigate the complexities of legal practice finances.
By asking the right questions and working with a specialist, you can take control of your firm’s financial health and focus on what matters most: serving your clients.
Comments