Every lawyer knows that money matters. That's why it pays to take account of your accounting systems. With the advent of new technologies and legal accounting software, it's time for lawyers to move beyond boxes of receipts and spreadsheets for managing firm finances.
In this free guide, we cover five steps that every lawyer will want to use to ensure an accounting system is in place, namely:
- Create a chart of accounts. Many law firms don’t realize how many accounts need to be tracked to accurately reflect their firm’s value, so we’ve included worksheets to make this process easier for you.
- Pick an accounting tool, keeping in mind its ease of use, integration with your practice management system, and ease of information sharing with your accountant.
- Determine the profitability of your firm. Tip: the information from your chart of accounts will play a big part in determining the many financial facts about your firm.
- Implement best practices for trust accounting. Make sure you review your jurisdiction’s trust accounting rules to make sure that you set up their accounting procedures correctly.
- Schedule reviews of time entry, billing, and accounting. There are different types of reviews that occur daily, weekly, monthly, quarterly, annually. Do you know which ones your firm needs?
See how easy legal accounting can be with this free guide.