In part two of our series, “Are You Ready to Start a Law Firm” we continue to ask the important questions to assess the readiness of aspiring attorneys/entrepreneurs. Here are some additional considerations from Firm Numbers, a bookkeeping service that has boots on the ground, helping the owners of small law firms be the boss, not the bookkeeper.

Are you an attorney wrestling with the thought of going solo? Starting a business is not just about tolerating risk and “taking the leap”. In Part One of our series: Am I Ready to Start a Law Firm”, we offer more specific questions to assess your readiness to be an entrepreneur.

Business consultants and coaches commonly advise small business owners to use a “trailing 12-month” statement of profit and loss (P&L) to get more value from their financial data which requires some extra effort, usually on the part of a bookkeeper or accountant, to design and populate. The question these business owners commonly ask: is the extra effort worth it?

Unsurprisingly, the COVID-19 pandemic has forced most business owners to forgo the use of in-house or in-person local bookkeepers. While this transition may not have been comfortable for everyone, it is also great news for small business owners who want professional financial guidance for a lower overall cost.

It is important for anyone with this habit to remember that avoidance of negative financial outcomes will be strongly reduced by the simple act of paying attention. If you can track your finances, you can plan ahead, act earlier, and avoid a slippery slope that would cause greater financial hardship. This is especially true during uncertain economic times when change occurs more rapidly than normal.

Our recent shift to working entirely from home has been a comedy of errors for many Americans, often accompanied by homeschool lessons, toilet paper anxiety, and the unfortunate question posed in every Zoom meeting: “Are you wearing pants?”. Now over 6 weeks and what feels like 435 years later, we are slowly entering the “acceptance” phase where Zoom meetings are a part of our work routine. And like any other part of our work routine, we are slowly making videoconferencing more professional and less concerned with one another’s pants status.

A licensed Certified Public Accountant (CPA) can project your future tax liabilities, update you on changes in the tax code, and protect you from making costly errors in strategic decision making. However, there are a spectrum of tax preparation solutions to choose from and not all CPAs are well-matched to work with a small, growing business.