The hours spent dealing with financial and legal matters could be better spent preparing for court cases and working with clients. By entrusting bookkeeping for law firms to the experienced specialists like BooksTime, your staff may focus on their primary responsibilities. Delegating such tasks often leads to increased productivity and higher earnings. Law firm trust accounting is the system used to track client funds held in trust accounts.

George R. Baxendale, CPA

Whether you’re behind on bookkeeping or ready to strengthen your firm’s financial systems, we’re here to help. Our clients gain peace of mind knowing their books are accurate, compliant, and working for them — not against them. As caseloads grow or practice areas expand, support can be adjusted without hiring or training new staff. Firms reduce in-house overhead while gaining access to expertise designed specifically for the legal sector. The savings can be reinvested into marketing, client acquisition, technology, or talent development.

SOLUTIONS THAT GROW YOUR BUSINESS

• If you’re dead-set on a local firm, see our list of great ones below.
• Ann Irons’ personal philosophy focuses on strong experience, integrity, and commitment to service above all else.
• The goal extends beyond clean books to creating financial operations infrastructure that supports growth without creating risk.
• Most lawyers use time and billing software for lawyers, like Bill4Time, that supports real-time tracking, matter-based billing, and professional invoicing.
• This means more time for what matters most—advocating for your clients and growing your practice.
• We look forward to supporting you as you make your business thrive.

Companies must maintain separate records for funds held on behalf of clients. Incorrect trust accounting can lead to regulatory violations, hefty fines, and the loss of clients due to reputational damage. Pooling client funds and company finances, along with untransparent transaction recording, may worsen the company’s financial performance.

What Makes Law Firm Accounting Different

When clients are slow to pay or don‘t pay their bills, you may find yourself unable to pay your staff or cover other overhead expenses. At least once a month, review your receivables and follow up on outstanding client invoices to keep your cash flow strong. Within each of those categories, you may have dozens of general ledger accounts. For example, you might have an operating account, lawyers trust accounts, accounts receivables, and fixed assets within the assets category. We consult with small and midsized accounting firms on complex U.S. and international tax issues.

Huntington Tax Partners

From the initial consultation to ongoing support, we clearly explain our customized solutions and processes so you know exactly where you stand. The goal extends beyond clean books to creating financial operations infrastructure that supports growth without creating risk. They create compliance exposure, miss profitability opportunities, and prevent firms from scaling confidently.

• It also offers to compile, review, and audit financial statements for various entities, from LLCs to corporations and partnerships.
• Steel Breeze offers a complete selection of tax assistance, from individual taxes to foreign income inclusions.
• Bookkeeping plays a central role in staying compliant with tax rules, anti–money laundering requirements, and trust accounting regulations.
• Juna provides team-based assistance focusing on the needs of entrepreneurs and small business owners.
• They also assist with business formation and entity selection, which is crucial for new businesses determining their legal structure.
• Professional financial operations separate law firms that scale successfully from those constrained by back-office chaos.

Invoicing delays disrupt payments and strain vendor relationships, limiting a firm’s ability to plan ahead. Billing disputes caused by inaccurate records damage credibility and hinder referrals. Internally, staff lose valuable time resolving errors instead of focusing on client needs, affecting morale and productivity. Regulatory bodies can impose fines, suspensions, or even disbarment for serious violations.

• We examine not just your books but also your business model, providing you with innovative ideas that increase your profitability and afford you more time to focus on your clients.
• These issues weaken cash flow and increase exposure to compliance problems.
• You’ll always have the human support you need, and a mobile friendly platform to access your up-to-date financials.
• At least once a month, review your receivables and follow up on outstanding client invoices to keep your cash flow strong.
• For example, say you deposited a check for $10,000 to the trust account on December 30 but the deposit didn’t clear the bank until January 2.
• The Dimov Tax Specialists team are detail-oriented professionals specializing in tax preparation.

We’ll recommend a tailored accounting and advisory solution designed to support your firm’s success. Law The Importance of Professional Bookkeeping for Law Firms firms rely on accurate records, which is why proper financial management is essential to provide long-term success. Law companies use this information to determine whether they need to hire lawyers, update software, or expand their target audience. Assessing the effectiveness of such actions is impossible without financial records. Your bookkeeping team consists of 3 professionally trained bookkeepers, including one senior bookkeeper who reviews all of your monthly statements and your Year End Financial package.

Monthly vs Quarterly Financial Responsibilities

For companies in need of bookkeeping help, Dimov can provide monthly and quarterly reporting. Their processing packages include accounts receivables, including tracking of aged accounts, accounts payable and payment approvals, and account reconciliations. Payroll for teams of any size is a crucial service, and sales tax reporting on whichever frequency the client requires. Nativance utilizes QuickBooks to help companies maintain their bookkeeping. Their services will assist in creating billing and invoicing processes to make the work quick and easy.

Senior Accountant – Outsourced Services

Expense categorization affects financial reporting accuracy, tax planning, and ethical compliance. Client-billable costs require different treatment than firm overhead. Operating Account The firm’s business checking account used for payroll, overhead expenses, and earned revenue.