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A solid grasp of financial and accounting fundamentals can enormously enhance the value of a young attorney's work product. I often saw evidence of this in my previous legal administrator role for a 50-attorney Denver law firm. In my current CPA practice, in which I serve more than 20 law firms on an ongoing basis, I see the same pattern in working closely with attorneys on tax planning and compliance, financial reporting, fraud investigations, forensic accounting, and business appraisals.
When I recently visited a law firm that retained me as an expert witness regarding a complex accounting matter, an associate attorney gave me an overview of several boxes of accounting records. These records included several thousand pages of tax returns, audited financial statements, general ledger detail schedules, and related documents. I would have to review these documents so that I could render an affidavit that the records produced by the underlying business client were satisfactory and sufficiently complete to allow a determination of a key issue in the litigated matter. The fact that this young attorney had a better than average grasp of the nuances of accounting and finance made my work much easier and resulted in a better result for the law firm's client.
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