Lynda ArtesaniLegal Accountant and Data Migration Specialist at The Proper Trust

The Hidden Financial Red Flag in Your Law Firm!

14 Oct 2024 · 1 min

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In this brief conversational segment, the speakers highlight a critical but often overlooked financial red flag for law firms: the tendency to hide problems from the accounting team. Speaker A urges lawyers and business owners to be transparent about issues that may be lurking behind “door number 2,” emphasizing that accountants will not judge but will help resolve the problems before they become unmanageable. Speaker B acknowledges that this concealment is a major warning sign, reinforcing the message that open communication between legal professionals and accountants is essential for early detection and remediation of financial issues.

One of the biggest red flags in the law firm is if you just don't see what you don't see.
Yeah. If you don't tell me.
Until the problem gets so big. It's okay to admit to us, the accounting side, what's behind door number 2 that you don't want everybody else to know about. At least tell us because we're not going to judge. We're going to help you fix it.
Well, but that should be a huge red flag.
What's that?
We're business owners. We get it.
We're right there with you without—
so it's— we're in no position to judge. We're just in a position of service and support. Bottom line. So sometimes they're embarrassed by it, but yeah, but it's okay because like you said, we don't know. Neither do they. So it's the same thing.