Spot Light: Erin Rochon on the Evolution of Bookkeeping and the Unique Challenges of Legal Finance
In this installment of uLaw’s ongoing Spot Light series, we turn our attention to the professionals behind the scenes who keep legal practices compliant, organized, and financially sound. Erin Rochon, founder of Rochon & Associates Pro-Active Bookkeeping, has been at the helm of her own firm since 2013. What began as a virtual assistant and consulting venture quickly evolved into a specialized bookkeeping practice that now serves lawyers, dentists, and other professionals across industries.
In our conversation, Erin discusses how she started, why trust accounting sets law firms apart, and how technology—especially AI—is reshaping the future of bookkeeping.
1. How long have you worked in the field of bookkeeping? What was your background leading up to this decision?
I've been a business owner in bookkeeping since 2013. Before that, I worked as an Office Manager, where bookkeeping was a part of my responsibilities. When I first started my own business, I planned to offer virtual assistant and process consulting services alongside bookkeeping. However, bookkeeping quickly became the primary focus and has since shaped the direction of my business.
2. Bookkeeping and accounting can vary from industry to industry. Can you elaborate on what specifically differentiates how financial management differs with respect to how law firms operate?
To start, it's helpful to clarify the basic difference between bookkeeping and accounting. Accounting typically refers to the year-end tax filings completed by Certified Accountants, while bookkeeping involves the day-to-day balancing and transacting of accounts.
While general bookkeeping practices are quite similar across industries, the unique aspect of law firms is trust accounting. Trust accounting requires more complex account reconciliations than simply balancing inflows and outflows, as these transactions must balance to the penny for each client within the firm. Additionally, the Law Society imposes specific reporting requirements that differ significantly from standard bookkeeping and accounting processes.
3. Your firm, Rochon & Associates Pro-Active Bookkeeping, appears to serve not only lawyers, but dentists, and possibly other medical professionals as well. How did your firm evolve to cover these different areas?
As is often the case in life, one connection can open doors to many new opportunities. Our firm has almost always grown primarily through referrals. As we networked with various groups, we met new people and built strong relationships, which in turn fostered trust and led to further referrals. My background before starting my firm included managing dental offices, so I already had an established network and hands-on experience with how medical and health-based offices operate. Having been in business since 2013, a lot of our growth has come from continuous networking and meeting new people.
4. During your career have you noticed any significant changes in how your company has operated; and how the actual job of bookkeeping and accounting has transformed through time? Are the changes you've witnessed consistent across different industries?
While every company evolves and grows, we've certainly seen significant changes in our processes and structure. The job of bookkeeping and accounting has transformed from paper-and-pen and manual systems to more electronic and digital methods. This shift has greatly improved efficiency in data entry, allowing us more time to help clients understand their numbers and provide better education on how to interpret them and make them work for their practice. For legal professionals, we also focus on ensuring they stay up-to-date with all Law Society requirements.
5. According to your website, it appears that your firm has numerous bookkeepers who perhaps work together as a team? Can you elaborate on how your team tackles these different areas for clients?
Yes, we have a fantastic team, and they are all diligent in following our company's processes. Each team member has also developed comfort and familiarity with different industries. Every client is assigned a dedicated bookkeeper who serves as their primary point of contact for all questions related to their books and finances. As the owner, I handle all matters related to HST, payroll, and any additional higher-level questions as needed.
6. What are your thoughts on the future of bookkeeping?
The future of bookkeeping is definitely changing with the advent of AI. However, at the end of the day, accounting will always require human eyes with knowledge and understanding to ensure everything balances and makes sense. AI is certainly bringing additional efficiencies to firms, from processes and financial management to summaries, and it may even allow us to provide further insights that we previously didn't have the capacity to take on. It's an exciting time, and we look forward to deepening our relationships with both our current and future clients.
Rochon can be contacted via her company website at erinrochon.ca