Legal accounting tips and tricks
Running a small law firm requires smart accounting practices to be successful – and compliant. Failing on the compliance front could mean costly penalty fees, and in the extreme cases, disbarment. Plus, do you really want to be devoting time you could be billing clients struggling to get the money side of your business set up and running right?
Different client billables shouldn’t be logged in the same way. For example, money you charge a client in advance of doing work is recorded as an asset on the balance sheet. Out-of-pocket expenses incurred on the client’s behalf go on the P & L (profit and loss). If you don’t do this right, you risk another type of compliance issue – this one with the IRS.
Of course, you’ll also want to be able to track costs in almost real time for efficient and accurate billing, right? Those small credit card, check, or cash transactions you fail to allocate to the right account can add up to big bucks over time. Do you really have the time or desire to stay on top of this daily?
What about tracking invoice payments? Income and revenue are not the same. Are you paying for out-of-pocket expenses first? You should be. Not doing so will make it hard to accurately track income. This can be easily resolved by synching your billing and accounting systems.
Whether you’re a solo-practitioner or have opened a small law firm with partners and/or employees (link to payroll services page), you’ve added a business owner hat to your legal focus. You can’t make good decisions without accurate financial data, including cash flow and collection issues. Why not delegate this to an expert who can do all this for an hourly rate that’s lower than what you’re charging clients?
Gone are the days where manual data entry of financial information is necessary. That’s a good thing. Our AI-assisted approach helps avoid the risks of human typing errors. This lets our accountants focus more of their time on reviewing information and providing strategic guidance. We can even manage invoicing and collections.
You probably talk to your clients about the importance of seeking professional, specialized legal help. Shouldn’t you follow your own advice on the accounting front? We can help you simplify the process with some automation, expert oversight, and stress-free delegation to a team focused on finding the best solutions for you.
The cost for our 360+ service is less than a typical manual-entry accountant with better and faster results. Opportunities with this efficient, user-friendly service can include:
- Bookkeeping in near real time
- On-demand financial reports
- Financial consulting support
- Integrated payroll services
- Quarterly tax filings
- Estimated taxes and tax returns
Why not let us integrate your current accounting software, spearhead your bookkeeping, pay your bills, and reconcile accounts?
It’s time to focus on what you do best: providing legal advice. We’ll help you take care of the money side of your business.