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Law Firms Are Hiring More Accounting Professionals To Help Take Care Of Business [by Kim Paton] In the past decade, law firm finances have taken on new meanings and scales. Globalization has contributed to the growth of international law firms, mergers have increased the number of very large law firms, and computer technology has changed the way even the smallest law offices can do business. Of course, law firms have long had in-house accounting staffs, but as a result of these recent changes in the legal environment, the accounting departments in major law firms have undergone major, necessary evolutions.
Glenn Graner, chief financial officer at Kirk-
servicing clients.
employees to be responsible for its financial information and directly accountable to the
patrick & Lockhart, LLP, has witnessed this evolution. When he began at the law firm as
Fifteen years ago, there were no CPAs on
controller about two decades ago, he worked
staff at Womble Carlyle. Nine years ago, after
with a staff of four accounting clerks. Now
a CPA with a strong technology background
As a result, many large law firms now have
he oversees a controller, a budget direc-
was hired as the executive director for the
a financial staff of 30 to 50 people, divided
tor, a treasury manager, a payroll manager,
entire administrative side of the firm, Mr.
among various departments. With such a
and a network of accounting managers and
Foster was the second CPA to be brought in.
sizable staff, it is imperative that some of the
clerks in ten offices. In all, an accounting
Now he is one of four CPAs there.
staff members have supervisory abilities.
manages matters such as the firm’s financial
As a result of law firms’ increased hiring of
Indeed at some firms, administrative profes-
statements and budget. Payroll and person-
finance professionals, law firms find them-
sionals find that their responsibilities vary
nel staff members administer functions such
selves in competition with more traditional
greatly and require a range of managerial
as timesheets, benefits, and the integration
businesses. Law firms must offer competi-
skills, depending on the needs of the firm at
of payroll with benefits.
tive salaries to attract someone with a C.P.A.,
any given moment. For example, at certain
M.B.A., or “Big 4” accounting firm experience
times of the fiscal year, upper level adminis-
partners.
department of more than 50 staff members
Mr. Graner noted that in the last 10 to 12
to be a controller or financial analyst. In
trators will need to focus on more hands-on
years, the accounting department has be-
many cases, large law firms offer a higher-
accounting tasks. At other times of the year,
come “more professional,” with several CPAs
than-market salary just to induce an experi-
financial staff must use a degree of pub-
and MBAs on staff. This trend reflects the
enced prospect to come in-house.
lic-speaking skills as they handle in-house
fact that a large law firm must now operate “more like a business.”
presentations to the firm partners or practice Although smaller law firms may not hire
groups.
finance professionals to perform their acHails Foster, director of finance at Womble,
counting functions, even small offices have
Carlyle, Sandridge & Rice, PLLC, commented
a bookkeeping employee handling various
ly like my work. It offers a wide variety from
that the large law firm trend toward hiring
accounting, personnel, and billing tasks.
day-to-day and month-to-month and allows
more professionals in their financial depart-
Still, more and more small firms are finding
me to still keep up my accounting skills.”
ments parallels the hiring of profession-
that the job does not remain “small” enough
als in other firm departments: marketing,
for just one person. As firms grow or merge,
technology, and human resources. Law firms
it becomes necessary to hire more finance-
have found that once they reach the size of
related employees and divide up the various
a couple hundred attorneys--often spread
responsibilities. Yet, because law firms have
throughout several offices--they cannot
an ethical duties to maintain client confi-
operate without professional staff to handle
dences, it may be particularly difficult for
the day-to-day administration of the firm. Of
firms to outsource much of their accounting
course, attorneys still oversee the business
work. Although law firms can hire outside
side of the firm, but surrounding themselves
companies to perform such sensitive work
with a professional staff leaves the attorneys
within the walls of the law firm, more times
more time to focus on practicing law and
than not, the law firm simply wants its own
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For those reasons, Mr. Foster stated, “I real-