Law Firm Bookkeeping 101

Our Bookkeeping VAs are not only skilled, but thoroughly vetted. We implement rigorous selection processes to ensure every bookkeeper is reliable, experienced, and holds the highest standards of integrity. Let us reduce your overhead so you have law firm bookkeeping the time to do what you do best – practice law. When it comes to key accounting concepts, it’s really about organization. If you’re a lawyer in Texas, check out our comprehensive guide, What You Need to Know About IOLTA Accounts in Texas.

• Not all bookkeepers offer tax preparation and/or filing services, so 1-800Accountant stands out with its additional tax services.
• On top of that, you need the data used in bookkeeping to file your taxes accurately.
• By now, you know you can’t simply create a financial strategy and budget and sit back and relax.
• Its features include automation of tasks, Gusto payroll processing, balance sheet production, income statements, accuracy checks and transaction databases.

In cash basis accounting, you record income and expenses when money changes hands. In accrual accounting, you record revenue when earned and expenses when incurred, regardless of when cash changes hands. Why has accounting for law firms traditionally been such a hassle?

What kind of services do bookkeeping services provide?

As an attorney, you’re aware that when you receive money that belongs to a client, you must place those funds in a trust account separate from your own money. These funds are stored in IOLTA or “interest on lawyers trust accounts” accounts. Your financial strategy will help you plan, strategize, and shift as you need to, helping you grow a financially healthy law firm. Each month, take some time to reconcile your budget compared to your reality, making changes that benefit your bottom line.

First, let’s review typical accounting and bookkeeping functions that need to happen regularly so you can make sure you’ve got these covered. With all the options available, we know it’s difficult to choose which software is the best choice for your firm. After all, you have to sift through the options alone, convince your partners to agree, and pray that it works as it should.

Bookkeeping Integration With Practice Management Software

Beyond just staying organized and compliant, following best practices for accounting for law firms will help you identify growth opportunities. Every law firm has a responsibility to stay compliant with ethics regulations, and your firm is no exception. Ethics rules vary in each jurisdiction, but there are definitely some basics when it comes to accounting for law firms. Our Bookkeeping VAs are a solution to law firms looking to optimize their financial department without compromising on quality or going over budget.

• We believe everyone should be able to make financial decisions with confidence.
• As financial professionals experienced in the legal sector, we at NorthStar Bookkeeping have seen firsthand the impact of specialized bookkeeping on law practices.
• Having too many accounts creates headaches later on, as it takes more time to review the books and increases your chances of making mistakes.
• Some bookkeeping services can provide a full suite of bookkeeping, accounting and tax services.
• In cash basis accounting, you record income and expenses when money changes hands.