Legal Accounting 101 for Law Firms
Legal Accounting 101
Legal accounting for your law firm can seem overwhelming. Here are some tips to streamline the process:
- Keep accurate records. This includes tracking all of your income and expenses, as well as client trust account funds. You should also keep detailed records of all time spent on billable and non-billable work.
- Use a legal accounting software. Legal accounting software can help you to automate your accounting tasks and ensure that you are in compliance with all applicable laws and regulations.
- Reconcile your accounts regularly. This includes reconciling your bank accounts, credit card accounts, and trust account accounts. Reconciling your accounts will help you to identify any errors or discrepancies.
- Prepare a budget. A budget will help you to track your spending and ensure that you are staying on track to achieve your financial goals.
- Get professional help. If you need help with your law firm’s accounting, consider hiring a professional accountant. They can help you to set up your accounting system, reconcile your accounts, and prepare your financial statements.
By following these tips, you can improve your law firm’s accounting practices and ensure that you are in compliance with all applicable laws and regulations.
Click on the Exercise Files link for a crash-course on Legal Accounting from our partners at Clio!