Our legal bookkeeping software offers comprehensive features to streamline your day-to-day accounting tasks. From automating routine processes to detailed financial tracking, legal accounting software ensures your firm’s finances stay perfectly organized. To ensure your firm’s financial statements are accurate, complete, and up-to-date, you need to use sound bookkeeping for attorneys. We utilize cutting-edge software and proven methodologies to identify the true cost of your services, project revenues and expenses accurately, and create cash flow management solutions tailored to your firm’s unique needs. Make the right pricing decisions to increase profitability and manage your firm’s financial future. Trust account management involves keeping track of client funds that are held in trust accounts.

• Are you looking for more information on the role of technology in a modern day law firm, read our article here.
• It will be able to co-counsel, refer or partner with separate staffing firms and other law firms, to expand services across jurisdictions, subject in all cases to legal and ethics rules in its various jurisdictions.
• Someone needs to reconcile the accounts, record the entries and prepare the year-end financial reports.
• KPMG has a cloud-based and generative AI-enabled Digital Gateway platform that serves as a “control tower” for a company’s set of tax and legal data, providing advanced analytics and reporting capabilities.
• Our legal bookkeeping software offers comprehensive features to streamline your day-to-day accounting tasks.

Comparing Financing Options for Law Firms: Loans, Equity, and Credit Lines

Bookkeeping is the process of tracking the cash coming into and out of your business, and it’s the foundation for proper legal accounting. Typical bookkeeping tasks are (1) recording payroll financial transactions, (2) creating and sending invoices, and (3) running payroll. Documenting billable hours and expenses ensures clients are appropriately charged for services rendered.

How does outsourcing accounting mitigate risk for law firms?

To effectively manage legal accounting for law firms, it’s wise to start with a foundation that works for all aspects of running your firm. This is because a professional legal bookkeeper and accountant can help you manage your firm’s revenue and ensure your firm’s financial transactions are handled ethically and accurately. Whenever a client pays an invoice, virtual accountant you must allocate the payment to the incurred costs of a matter first.

• They check-in with us weekly or more, and they maintain and upgrade our financial systems as our firm continues to grow.
• Our expert accountants and bookkeepers provide accurate and timely financial reports, enabling law firms to make informed decisions about their finances.
• Learn how Invensis enhanced the order management efficiency of an Australian home shopping company by providing efficient data processing outsourcing services.
• Make the right pricing decisions to increase profitability and manage your firm’s financial future.
• A bookkeeper could be helpful for administrative help with your firm’s finances (like recording transactions, balancing accounts, and creating invoices).
• If you’re a lawyer in Texas, check out our comprehensive guide, What You Need to Know About IOLTA Accounts in Texas.

Cash accounting

InvoiceSherpa automates your accounts receivable with reminders and collection software. Because InvoiceSherpa integrates with Clio, you can bring contacts and invoices from Clio directly into InvoiceSherpa. Automated bill reminders enable you to automatically send outstanding balances to your clients and bill recipients based on a schedule you can customize. Trust accounts are one of the most common areas where legal accounting mistakes are made.

• To make sure that your bookkeeping has accounted for this correctly, you’ll need to make sure that the balance in your IOLTA trust bank account matches the amount reflected on your books for the IOLTA account.
• We understand that the success of our clients is our success and strive to build long-lasting relationships.
• For long-term legal projects, the percentage-of-completion method is often appropriate.
• The role of a law firm accountant is multifaceted, often encompassing tasks such as managing trust accounts, tracking billable hours, and ensuring compliance with legal accounting standards such as the American Bar Association’s guidelines.
• When looking at the importance of solid accounting, you’re really talking about looking at financial data on a regular basis.
• We have a track record of assisting various businesses, from small startups to large companies, in bettering their finances.

However, the Law Accounting team has been very helpful and patient in assisting our firm in fixing and smoothing out the product for our purposes. We’d like to continue our relationship with them as we grow our firm and as they continue to improve Law Accounting to its full potential. Best of all, as we like to do at the Biglaw Investor, we’ve negotiated a special deal for readers of the site. If you sign up using the links on this page, you’ll get 20% off law firm accounting services your first six months of bookkeeping with Bench. I’ve been so happy with the experience that I’m on the annual plan and my guess is that after six months of working with them, you’ll be on the annual plan too.