When clients are slow to pay or don‘t pay their bills, you may find yourself unable to pay your staff or cover other overhead expenses. At least once a month, review your receivables and follow up on outstanding client invoices to keep your cash flow strong. Lawyers spend years honing their legal skills, but they often have little knowledge of accounting practices.

Have confidence in your books.

• Get a quick call with an expert to discuss custom solutions for your business.
• Trust accounts hold funds belonging to clients or third parties (e.g., settlement funds, court fees).
• Accurately tracking billable hours for multiple attorneys and cases can be prone to errors and lead to client disputes.
• You can trust that your financial records are accurate, up-to-date, and compliant with regulations, allowing you to focus on running and growing your business.

By prioritizing indicators and outsourcing non-law-related tasks, law offices can maximize https://thebossmagazine.com/post/how-bookkeeping-for-law-firms-strengthens-their-finances/ their profits. Whether you opt for in-house or virtual bookkeeping, prioritize expertise and experience. Ensure your chosen professional possesses a solid grasp of legal accounting principles, accounting software like QuickBooks, and tax regulations specific to law firms.

Tools and Systems to Help with Trust Compliance

In cash basis accounting, you record income and expenses when money changes hands. In accrual accounting, you record revenue when earned and expenses when incurred, regardless of when cash changes hands. Our exclusive focus is accounting for attorneys, which means every system, report, and process is built around your specific legal needs—from trust reconciliation to tax strategy. Managing financial records can be time-consuming, taking you away from your core legal responsibilities. A bookkeeper can take over these tasks, allowing you to dedicate more time to your clients and legal practice.

Refine client and talent experiences to create growth opportunities for your staffing firm.

I was trying to keep track of so many different binders, sheets of paper, excel spreadsheets, and bank receipts; it was a nightmare. Our professionals are immersed in your industry  to get deeper into the issues that matter to you. We take the time to understand what you’re trying to achieve, then look for opportunities that can impact your organization and help you pursue them. Multi-office firms have different systems and processes in each office. Accounting teams stay updated on legal rules and regulations, ensuring compliance.

Key financial statements

However, they’re actually areas of specialization, requiring knowledge of complex legal accounting principles and regulations. For example, your bookkeeper records all client payments accurately. Then, your accountant analyzes this data to identify slow-paying clients and recommend better billing policies. Our industry experts stay on Bookkeeping for Law Firms top of changing trends and leverage years of experience, relationships, and continuing education. Smith Schafer’s industry specialization allows us to stay on the leading edge of industry developments, regulations, and opportunities.