The thing that takes the most time with this client is the invoicing. They have a system outside of QuickBooks that is HIPPA compliant, which are the rules in the United States that you need to follow if you keep any medical information about your patients. The last task I do for the preschool is to categorize income, which doesn’t take all that long. Essentially, we get a lump sum of money, and we want to categorize it to see how much each class is making. This will show them which of the six classes is most profitable.

LYFE Accounting has established a reputation with legal accounting services and many clients law firm bookkeeping were happy with the results. Which is why working with our team will be a pleasure for you!

Failing to Accurately Maintain Your IOLTA (Trust) Bookkeeping

If you have special certifications, you may be able to make some price adjustments—and clients may be more than willing to pay for said adjustments if they know it means a higher level of trust and competency. The Biglaw Investor is helping thousands of lawyers manage and eliminate student loans and make great investment decisions. We’re on a mission to help every lawyer achieve financial independence. First, you’ll deposit all retainer checks and similar money that belongs to a client in an IOLTA account.

• It’s no secret that law firm accounting is more difficult and nuanced than the typical money management of other types of businesses.
• A full-time bookkeeper handles the day-to-day accounting functions for your office.
• We will review and reconcile to make sure we capture all the ordinary and necessary expenses.
• One way you can determine how much to charge is to tie each task to a dollar amount.
• Your primary expense will be the time you devote to bookkeeping, which keeps you from tasks that generate income for your law firm such as billing clients or developing new business.
• I do not offer full-service payroll as a bookkeeper, and I don’t do payroll in QuickBooks, but my clients have a payroll service they use.

Making the jump from an attorney to running a law firm can bring a ton of new intimidating challenges. Legal accounting and attorney bookkeeping are surely one of the largest you face. That’s why we recommend you should hire a professional legal account. Now, you can dedicate your valuable time to growing your business.

Interest on Lawyers Trust Accounts (IOLTA)

When you take funds out of your business for personal use, it can either be classified as a capital withdrawal or as a payment for salary. These are two different types of transactions and need to be managed accordingly. Having a bookkeeping and accounting system in place will ensure that the payments to yourself are recorded appropriately as salary.

Speaking of expenses, one of the most common mistakes attorneys make is losing track of business expenses. It’s best to capture and record your business expenses on the daily, so you don’t lose those receipts or invoices. Then, set aside a time each week to make sure they are coded properly in your books. How much cash and credit do you have available in non-client (i.e., not trust) accounts to keep your business afloat? Many lawyers assume their bookkeeper can or should help them with their financial analysis and get frustrated when they don’t. If you understand the different roles and skillsets each position has, you’ll be able to assess what type of help they can provide to you.

The Premier Legal Bookkeeper Serving Attorneys in the Tampa Bay Area

How much are you spending on labor (employees’ salaries, taxes, and benefits) as a percentage of total revenue? Bookkeeping requires you to be accurate, diligent, and display attention to detail. Legal product reviews and business guidance from industry experts. Our Field Guide to Buying Products & Services walks you through the process so you can find the right fit for your firm. Field Guide to Buying Products & Services Our field guide takes the guesswork out of buying products & services.

PCLaw is a great all-in-one legal accounting software solution that can handle bookkeeping and accounting for law firms large or small. It even uses Legal Electronic Data Exchange codes to simplify billing. In addition, the way that the software handles matter management, time tracking, trust accounting, and billing needs to work with your law firm’s current processes and workflows.

Enhances payment collection when invoices are sent on a timely basis, and when overdue payment reminders are regularly followed up by e-mail and phone calls. Reduces stress by taking your firm’s bookkeeping needs off your plate. Contact the Giersch Group onlineto get a free consultation and personalized quote for our services. Attach receipts with ease either online or with your mobile device. The Bookkeeper Launch program has a really detailed spreadsheet that goes into each task you may do for the client, how long it may take you, and how to determine what set amount you will charge for those tasks. I’m in charge of sending invoices out to their patients, so I look in the system how much we are supposed to be charging them. For example, the appointment may have cost $300, the insurance covered $200 of the charge, which leaves $100 as the patient’s responsibility.

I like to calculate my rate based on my max time, but then I’m rewarded if I work quickly and efficiently. To illustrate what a small client looks like, I’ll be using a preschool I do bookkeeping for that generates about $150k in revenue a year. This preschool employs six teachers and hosts about 100 students. We recommend choosing one or the other to prevent confusion and for the most accurate overview of your firm’s finances. If you’re considering closing your firm or want to sell in the future, a CPA can educate you on your tax responsibility, your firm’s market value, and more to help guide your decision.