Monthly financial statements (P&L, balance sheet, cash flow) should be included in any retainer. Providers charging separately for each report are nickel-and-diming you. According to Clio’s 2023 Legal Trends Report, firms that maintain structured financial systems grow faster and retain clients longer. Soft costs, on the other hand, are expenses that do not result in a direct payment to a third-party vendor. Are you looking for more information on the role of technology in a modern day law firm, read our article here. We provide interactive financial dashboards and key performance indicators tailored to your firm’s unique needs.

How often should I reconcile my trust account?

• If your firm uses a different platform, we can evaluate its compatibility and customize our support accordingly.
• We can help manage the financial side of your firm, allowing you to focus on practicing law and building your book of business.
• Clear financial data reporting and analysis provides confidence in operational decision, management, transparency, and partner trust.
• Discover how we can help you achieve financial accuracy and peace of mind.
• Records can include bank statements, checkbook registers, and any supporting documents related to the account.
• We can help you select a program that’s appropriate based on your size and specialty.

During tax season, those using cash basis accounting are generally only required to report on income received and expenses paid in the year they were received or paid. For example, businesses filing taxes for 2024 can only use the cash method if receipts from the past three years do not exceed $30 million. The next step is to nail down your law firm’s budget and related goals to help keep your team financially afloat.

Common law firm accounting and operating metrics include:

From faster reconciliations to fewer invoicing mistakes, efficient bookkeeping saves time and reduces stress for attorneys and support staff. Join lawyers from over 18,000+ firms who trust MyCase to grow their firm while managing their caseload. Data discrepancies related to invoices, bills, and other financial transactions can lead to larger issues. Manual bookkeeping can also lead to small mistakes—like duplicate entries—leading to reporting and compliance issues. Providing several flexible payment options can help your team get paid faster and improve payment collection.

Controller Services

These chores detract from billable activities and the pursuit of new business. In fact, the perennial top challenge reported by small firm attorneys is spending too much time on administrative tasks — and not enough time practicing law. Maintaining accurate ledgers and routinely reconciling accounts can also take up a lot of time. For example, you must maintain an accurate ledger for each client in case they ask for their account’s status. Using LawPay as your legal payment processor makes it easy to securely offer multiple payment options while maintaining trust account compliance.

When it comes to organization, getting off on the right foot should help you stay more organized now and into the future. To keep your firm on the right track, it is helpful to have a list of best practices to follow. The bookkeeping system that every law firm bookkeeping entry to an account requires corresponding opposite access to a different accounting. This is a double-entry system, so there are two equal corresponding sides at all times. Double-entry accounting can create a balance sheet made of equity, liabilities, and assets. Violating compliance regulations purposefully or through neglect can lead to significant repercussions.