Accounting is crucial to handle in every business and law firm is no exception in this regards. Because whatever business you are doing the ultimate purpose of it is to earn profits. Whether you are an attorney or an owner of a small sized law firm, you may find it hard to manage your legal as well as accounting tasks.
1. Use the right software- You should be aware of the fact that there is a lot of difference between a general accounting software and a legal accounting software and you need to choose the right software for your firm because a general accounting software is not capable enough to provide you the clear picture of your law firms accounts. Some of the best legal accounting software are AbascusLaw, Amicus Attorney, Bill4Time, etc. that can ease the accounting process.
2. Maintain an appointment book- In order to keep yourself updated about your work schedule and meetings, you need to maintain an appointment book that reminds you to keep yourself available for your clients.
3. Accounts receivable journal- Accounts receivable journals remind you the due dates of the cash your clients have to owe you in turn of the services they have received from you. So, it helps you to save your firm from any kind of financial losses.
4. Maintain separate client ledgers- In these separate client ledgers, you can keep a record of services that you have provided to your clients, how much you have charged for those services, how much amount is paid by your particular clients, and how much amount is pending from their side. This again saves you from any kind of financial frauds.
5. Maintain time summary reports- Time reports are generally maintained by the attorneys or the clients and it consists of the facts such as the time when the case has started, dates on which attorneys have worked on it, billing and other expenses.
6. Keep your firm’s expenses separate- If you are into a business, then it’s obvious that it incurs some expenses also such as; building rent, electricity bills, internet bills, and employee’s salaries etc. You need to keep a proper and separate record of all these expenses, which further help you to take the informed decisions for the future and also assist you to decide how much the clients should be billed.
7. Manage your revenue receipts properly- You need to keep the receipts separately in case you are getting payments in installments. And before you count these funds as your income you first need to pay off all your bills or liabilities. A right accounting software can do this task for you in no time but if you are using a general accounting software then you have to split these invoices manually.
We know that you are an attorney and not an accountant and that’s perfectly fine. You can maintain your accounts by using right software or by appointing a bookkeeper. But if your firm is just a startup or you are a lawyer who is handling all these tasks solely then it might be a bit difficult for you to manage your accounts.
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