Professional Services Accounting ARTICLE -
A Business Manager May be Just What You’re Missing
Target Audience: Law Firm Leaders, Law Firm Industry Interest, Hiring Law Firms, Business Managers, Financial Managers, Administration, Chief Operating Officers, Mangers with MBA or CPA Credentials
Many law firm leaders are asking themselves: Should we hire a full-time business manager to run our operations? In many cases the answer is a resounding “yes.”
A business manager experienced in financial management and administration can manage billing, collections, purchasing, accounting, cash management, insurance management and payroll. Business managers can also oversee other departments, such as human resources and information technology.
Firms are increasingly hiring firm administrators to serve in more of a chief operating officer (COO) capacity. A COO-type business manager can oversee the firm’s strategic and operational management functions, such as the development and management of capital and operating expense budgets and the implementation of the firm’s business plan and administrative policies.
Some business managers’ roles even cross over into legal territory to oversee the outside counsel process, from fee negotiation to development of critical counsel relationships to implementation of cost-saving strategies.
Although the demand for business managers with MBA or CPA credentials or similar qualifications has led to higher salaries, the potential return on investment can be several times more than the compensation, depending on how much responsibility you relinquish to the professional.
Still, there are differing views about whether law firms should hire nonlawyers to manage their business operations. Carefully weigh the pros and cons of hiring a business manager for your firm. If possible, get a consensus from firm leadership — otherwise, the new hire could spend a great deal of time trying to build support for new initiatives or changes.
Develop a comprehensive job description, and determine the qualities, skills and education level you desire in a candidate. Outlining your expectations of the position can help you find the best match for your firm.
Find out how our expertise in professional services accounting can add value to your business. Email us or call us at 1 (888) 875-9770.
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