Bookkeeping for Law Firms
Evans Sternau CPA provides bookkeeping services designed specifically for law firms.
Does your law firm need a bookkeeper?
Bookkeeping is an essential aspect for running successful law firms. Keeping track of finances and staying on top of financial records ensures that your firm is operating efficiently and accurately.
Law firms face unique bookkeeping challenges, such as managing trust accounts, tracking expenses related to cases, and billing clients for services provided. Without proper bookkeeping, law firms can run into financial problems that can affect their reputation and ability to practice law.
The first step in effective bookkeeping for law firms is to keep accurate and up-to-date financial records. This includes recording all income and expenses, reconciling bank statements, and ensuring that all transactions are properly categorized. Law firms should consider investing in legal-specific accounting software that can be customized to their unique needs, such as tracking trust accounts and creating invoices.
Another important aspect of bookkeeping for law firms is managing trust accounts. Law firms commonly hold trust accounts for clients, which requires careful tracking of deposits and withdrawals. Funds in these accounts should never be commingled with the firm’s operating account, and all transactions related to the trust account should be carefully recorded and documented.
For law firms that work on contingency fees, bookkeeping can become even more complex. In these cases, the firm’s revenue is directly tied to the outcome of a case, and expenses related to that case should be carefully tracked and allocated. Law firms should consider using legal-specific accounting software that can handle contingency fee arrangements and automatically calculate revenue based on the outcome of a case.
In conclusion, proper bookkeeping is essential to the success of law firms. With careful tracking of income and expenses, managing trust accounts, and accurate invoicing, law firms can ensure that their finances are in order, avoid legal and financial problems, and focus on practicing law. Investing in legal-specific accounting software can help streamline these processes and minimize mistakes.
ABOUT EVANS STERNAU CPA LLC
Evans Sternau CPA is seeking reform in an industry where responsiveness and availability are the exceptions – not the norm.
Our global network of committed CPAs and accountants places proactive thinking at the forefront of our work. With robust service offerings and client support strategies, we are always searching for opportunities to serve your best interests.
While our philosophy is rooted in tried and trusted methods, our execution surpasses the norm and redefines the standard.
Evans Sternau CPA provides proactive tax, accounting, and advisory services for business owners, entrepreneurs and individuals with complex tax challenges. Evans Sternau CPA is for those that want year round support, not just during tax season.
