Why Are You So Interested in Our Firm's Accounting System?

September 20

Accounting System, Law Firm​I am often asked why I am so interested in a client's accounting system when I am not necessarily engaged to fix or evaluate it. My response is two fold: a client's accounting system is a reflection of their attitude toward running the firm; and secondly, much of the advice I give is dependent on accurate score keeping, which either confirms that a particular initiative is working or that a course change is needed. Poor accounting causes sub par decision making.

 

It is my experience, firms with strong accounting systems are the most likely to take a disciplined approach to solving firm problems and perform better. Just the same, firm's that struggle strategically are also those with poor to average accounting. In short, the accounting system is a measure of quality.

 

I have had enough statistics training to know that it would be easy to refute this unscientific approach to this conclusion, but I also know that I am much more comfortable with, and get better results for, firms that are on top of their books.