Five Reasons to Pair Your Accounting With Sound Legal Advice
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At Hallows & Company we understand today’s complex business environment and having a solid financial strategy is essential for the success of any company. Accounting is an important part of this strategy, as it allows businesses to track their income and expenses, and make informed decisions about how to allocate resources. Hallows & Company has always excelled at this. However, pairing your accounting with good legal advice can take your financial strategy to the next level. In this article, we will discuss 5 reasons why you should pair your accounting with good legal advice, and how Hallows & Company has made it easier than ever to combine your legal and accounting.
Compliance with regulations
One of the primary reasons to pair your accounting with good legal advice is to ensure compliance with regulations. In many industries, there are strict rules and regulations that govern financial reporting, tax compliance, and other financial matters. Failure to comply with these regulations can result in fines, legal action, and damage to your business’s reputation.
A good legal advisor can help you navigate the complex regulatory landscape and ensure that your business is in compliance with all relevant laws and regulations. They can also provide advice on best practices for financial reporting and tax compliance, which can help you avoid costly mistakes and penalties. At Hallows & Company, we have an in-house business attorney that can come into our client/team meetings to be that advisor for our clients and make sure all of our businesses are in compliance.
Protection of assets
Another important reason to pair your accounting with good legal advice is to protect your assets. Your business’s assets, including intellectual property, real estate, and financial investments, are among its most valuable resources. Protecting these assets from theft, damage, or legal disputes is essential for the long-term success of your business.
A legal advisor can help you develop strategies to protect your assets, such as creating contracts and agreements that establish ownership and usage rights, and implementing security measures to prevent theft and damage. They can also help you navigate legal disputes related to your assets, such as breach of contract, infringement of intellectual property rights, or property damage claims.
One aspect of protecting assets is making sure your company is structured correctly legally and you are operating your business within that structure. Between our legal and accounting services at Hallows & Company, that is the first thing we look at and make sure all of our clients are on point.
Minimization of legal risk
Legal risk is a significant concern for businesses of all sizes. Legal disputes, lawsuits, and other legal issues can be expensive, time-consuming, and damaging to your business’s reputation. By pairing your accounting with good legal advice, you can minimize your legal risk and protect your business from legal disputes and lawsuits.
A good legal advisor can help you identify potential legal risks and develop strategies to mitigate them. For example, they can review contracts and agreements to ensure that they are legally sound, and provide guidance on how to handle legal disputes and other legal issues. They can also help you develop policies and procedures that minimize legal risk, such as employee training programs and risk management plans.
Optimization of tax strategy
Tax optimization is another area where pairing your accounting with good legal advice can be beneficial. Tax laws and regulations are complex and constantly changing, and businesses need to stay up-to-date on the latest developments in order to optimize their tax strategy and minimize their tax liability.
A legal advisor with expertise in tax law can help you develop a tax strategy that is tailored to your business’s specific needs and goals. They can provide guidance on tax planning, tax compliance, and tax optimization strategies that can help you reduce your tax liability and maximize your after-tax income.
At Hallows & Company we have made this simple by having our in-house attorney work along side our clients and CPA’s. Many clients have a lawyer and a CPA, but the two rarely talk to each other, let alone meet as a team. This causes the client to have to communicate “law speak” to the CPA and accounting jargon to the lawyer. So much here is lost in translation and can cause major mistake in the tax planning. Hallows & Company has provided the solution by having the legal help sit at the table with your CPA to avoid such confusion.
Finally, pairing your accounting with good legal advice can help you make better business decisions. Financial data is essential for making informed decisions about how to allocate resources, but it is not the only factor to consider. Legal considerations, such as contractual obligations, legal risks, and regulatory compliance, can also have a significant impact on business decisions.
Contact Hallows & Company to see how working with our legal advisor, who understands your business’s financial goals and objectives, can help you make more informed decisions that take into account both financial and legal considerations. This can help you avoid costly mistakes and make strategic investments that support the long-term success of your business. Contact us at www.hallowscompany.com.
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