Accounting Firms Are Learning The Legal Business. Lawyers Need To Learn The Accounting.

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Michael J. Epstein, managing partner of The Epstein Law Firm, P.A., examines the growing involvement of accounting firms, private equity investors, and management companies in the legal profession in his article, “Accounting Firms Are Learning The Legal Business. Lawyers Need To Learn The Accounting.” He emphasizes why attorneys must understand the financial arrangements that can influence their firms’ operations and professional independence.

Epstein focuses on management services organizations (MSOs), which provide law firms with administrative support, technology, marketing, staffing, and other business services. While these arrangements can improve efficiency, he explains that financial agreements may create outside influence even when attorneys retain full ownership of their practices.

The article examines how management fees, debt obligations, related-party transactions, and control over essential business resources can affect a firm’s ability to make independent decisions. Epstein also discusses New Jersey’s professional conduct rules concerning nonlawyer fee sharing and the importance of protecting attorneys’ independent judgment.

He encourages law firm owners to evaluate the complete financial structure of an MSO relationship, including compensation arrangements, operational control, and the consequences of terminating an agreement. Understanding these details, he argues, is essential to ensuring that business interests do not interfere with obligations to clients.

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The Epstein Law Firm, P.A., continues its work representing clients while addressing issues affecting the legal profession and attorney independence.