Thoughtful cost management is therefore not merely an administrative exercise, but a strategic necessity. It plays a key role in determining how resilient a notarial office is, both in the short and long term. In this article, we explain how cost management works in practice for notaries, which cost items are typically involved, and which points of attention remain crucial within the legal and supervisory framework.
What does cost management mean for notaries?
Cost management for notaries encompasses all processes used to monitor, steer and optimise the expenses and revenues of the notarial office. The objective is not simply to reduce costs, but above all to create insight: understanding where resources are allocated, which costs are fixed or variable, and how they relate to the turnover achieved.
Effective cost management helps notaries remain profitable within a strictly regulated environment. It enables timely adjustments, better investment planning and control over financial risks, without compromising on quality or compliance.
Which costs are typical for a notarial office?
The cost structure of a notarial office differs in several respects from that of other liberal professions. Some costs are legally or structurally determined, while others allow for more managerial discretion.
In most notarial offices, personnel costs represent the largest expense. This includes not only the remuneration of the notary or notaries themselves, but also that of notarial staff and administrative employees. Team composition, level of experience and staff turnover have a direct impact on both costs and operational efficiency.
The remuneration that a notary pays to themselves is, in principle, freely determined. Precisely for that reason, it is an important lever within overall cost management and should ideally be considered in conjunction with the chosen corporate structure and long-term planning.
The premises of a notarial office entail fixed costs, such as rent or depreciation of the building, supplemented by utilities and communication services. Office layout and the use of available space also play a role. Efficient use of space and well-considered choices regarding location and infrastructure can, over time, make a noticeable difference to the cost structure.
Notarial offices rely heavily on specialised software for, among other things, deed management, accounting, archiving and compliance. These digital tools increase efficiency and reliability, but naturally involve licence, maintenance and update costs.
The growing shift towards cloud solutions and the use of digital deeds, particularly since the COVID period, mean that IT is no longer merely a supporting cost, but an essential component of office operations. Reliable systems, security and connectivity are crucial in this regard.
Insurance is an unavoidable cost item within the notarial profession. In addition to the mandatory professional liability insurance, notaries often take out additional policies, such as fire insurance or guaranteed income insurance. These provide protection against the financial consequences of unforeseen events and form part of sound risk management.
Notaries are legally required to complete a certain number of recognised training hours each year. In addition, the effective functioning of the office requires that staff members also receive continuous training. Legislation and procedures evolve rapidly, and correct application requires up-to-date knowledge. Training is therefore not an optional expense, but an investment in quality and compliance.
In addition to fixed internal costs, notarial offices regularly rely on external parties, such as consultants or lawyers. This may be a deliberate choice to maintain flexibility and limit fixed personnel costs, especially during busy periods.
Fees paid to fellow notaries also fall under this category. In the case of confraternal deeds where the office acts as the holder of the original deed, part of the fee is transferred to the intervening notary. Although these costs are inherent to the functioning of the notarial profession, they require proper monitoring within overall cost management.
Other costs include tax obligations, accounting support, bank charges and interest on loans. Timely advance payments of corporate tax are important to avoid tax surcharges and to arrive at a realistic estimate of the final tax settlement.
In addition, there are deed-related expenses: costs associated with drafting and registering notarial deeds. These vary depending on the type of deed and the specific circumstances. Correct and complete recharging to the client is essential to prevent these costs from weighing on the office’s profitability.
How are notarial costs financed?
The income of notaries is largely determined by law. For most deeds, fees are fixed or calculated according to predefined scales. In addition, a flat-rate deed fee may be charged to cover general office costs and allow for the creation of reserves.
Costs that can be directly attributed to a specific deed may be charged separately, such as expenses for searches, certificates or external platforms. It is important that these costs are systematically and correctly recharged, so that they are fully recovered. Modern accounting software can support and automate this process.
Risks affecting cost management
Cost management cannot be separated from risk management. Reputational damage due to dissatisfied clients, fluctuations in the real estate market, staff turnover or strategic choices can have a direct impact on the cost structure. The risk of misappropriation of client funds or damage claims also requires vigilance and strong internal controls.
Good information systems, clear procedures and regular internal consultations are essential to detect and manage these risks in a timely manner.
Supervision, monthly statement and available balance
Every notary is required to prepare a monthly financial statement for the Supervisory Commission on Accounting. This monthly statement provides insight into, among other things, income, expenses, client balances and the available surplus.
The available balance must amount to at least 7.5% of the average turnover of the past three years, unless exceptionally authorised otherwise. Although certain debts are not included in this calculation, they remain relevant for overall cost and liquidity management. An overly narrow focus on the available balance can therefore give a distorted picture.
Since 2023, the preparation and review of the monthly statement have largely been digitised, increasing transparency but also requiring accurate and timely follow-up.
Cost management in practice: comparing and adjusting
Strong cost management requires regular analysis and benchmarking. By comparing figures year on year, notaries gain insight into trends such as the ratio of personnel costs to turnover, the actual impact of deed-related expenses, or the evolution of external costs.
These analyses form the basis for well-founded decisions and timely adjustments where necessary.
Moore as a partner for notaries
At Moore, we support notaries as more than just accounting and compliance experts. We act as a committed sparring partner, actively thinking along on cost management and financial optimisation.
Thanks to our extensive experience with notarial offices, we have access to valuable benchmark data. This allows us to compare your financial ratios — such as those used in the Chamber’s three-year profitability analysis — with those of similar offices, in a fully anonymised manner.
Ready to gain clear and structural insight into your figures? Contact one of our experts and discover how you can organise your office in a sustainable and future-oriented way.
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