Accounting Strategies for Small Business Law Firms' Sustainability

Accounting Strategies for Small Business Law Firms’ Sustainability by Karen Adams MBA, American InterContinental University, 2011 BBA, American InterContinental University, 2010 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University August 2016 Abstract Small business family law firms generate jobs within the local community, but often fail because of suboptimal accounting strategies. A multiple case study was used to research the accounting strategies small business family law firm owners use to succeed in business beyond 5 years. The population for this study was three small business owners of family law firms located in West Chester, Pennsylvania. The small business family law firm owners had achieved and maintained profitability of their businesses for a minimum of 5 years. Financial literacy theory and the leadership skill model comprised the conceptual framework for this study. Data collection included semistructured face-toface interviews with the small business family law firm owners, a review of company documents, and field notes. Thematic analysis included data from face-to-face interviews, document collection, field notes, and current literature. Themes that emerged were (a) having or obtaining some formal accounting education, (b) working with an accounting professional, (c) categorizing expenses and using formal financial reporting, (d) developing and maintaining ethical standards of billing and unearned income, and (e) utilizing accounting software. Recommendations for action included investing in accounting courses and seeking professional assistance. Small business family law firm owners may apply these results to spend more time working with clients to increase income. Increasing the success of small business family law firm owners may contribute to positive social change by providing increased employment and economic health within communities.Small business family law firms generate jobs within the local community, but often fail because of suboptimal accounting strategies. A multiple case study was used to research the accounting strategies small business family law firm owners use to succeed in business beyond 5 years. The population for this study was three small business owners of family law firms located in West Chester, Pennsylvania. The small business family law firm owners had achieved and maintained profitability of their businesses for a minimum of 5 years. Financial literacy theory and the leadership skill model comprised the conceptual framework for this study. Data collection included semistructured face-toface interviews with the small business family law firm owners, a review of company documents, and field notes. Thematic analysis included data from face-to-face interviews, document collection, field notes, and current literature. Themes that emerged were (a) having or obtaining some formal accounting education, (b) working with an accounting professional, (c) categorizing expenses and using formal financial reporting, (d) developing and maintaining ethical standards of billing and unearned income, and (e) utilizing accounting software. Recommendations for action included investing in accounting courses and seeking professional assistance. Small business family law firm owners may apply these results to spend more time working with clients to increase income. Increasing the success of small business family law firm owners may contribute to positive social change by providing increased employment and economic health within communities. Accounting Strategies for Small Business Law Firms’ Sustainability by Karen Adams MBA, American InterContinental University, 2011 BBA, American InterContinental University, 2010 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University August 2016