Do you want to escalate the business performance of your law firm? A legal bookkeeper can be your savior to get through this!
Most law firms start operating with the preconceived belief that they do not require any legal bookkeeper at all. But they must learn that a specialist bookkeeper is an investment rather than an incurring expense. A legal bookkeeper can manage not only your firm’s financial matters but also compliance-related issues.
If you are already struggling to keep up with all your firm’s activities, consider hiring a legal bookkeeper to reduce your workload and expenses, too.
Reconciliation of your Trust Account
Many law firms/sole practitioners consider appointing a bookkeeper as an inconvenience. But, they face hitches when they go through the Trust Account Reconciliation Process. In this case, a legal bookkeeper, on your behalf, will look after the reconciliation of your trust account.
Legal bookkeepers are experts in trust accounting and its maintenance. They are well conversant with the latest legislative regulations. Moreover, they will also provide advice regarding the management of the trust account. If you do not hire a bookkeeper, you may face penalties, which may cause you financial loss.
Preparing Reports
A legal bookkeeper can prepare monthly management reports to analyze firm and staff performance. He/she prepares reports like fees and expense tracking, client listing, three-way reconciliation, VAT return, trend analysis, new clients, etc. A bookkeeper will monitor all your financial expenses and give helpful guidelines to grow your business.
Maintaining deadlines
A legal bookkeeper will ensure that all dates and timeframes are maintained. Missing a deadline means you have to pay a substantial amount of penalties. An expert bookkeeper can also forecast cash flow.
Generating and Keeping Track of Invoices
Invoices are required for timely billing. A legal bookkeeper can confirm that invoices are accurately generated and sent in due time. He/she can keep proper track of all the invoices. It will help generate revenue with little/no outstanding. Moreover, he/she keeps all the client logs accurately.
Dealing with Compliance issues
A legal bookkeeper will set the procedures for keeping records about your assets, liabilities, expenses, and revenues. Keeping and relating all the records to the laws is time-consuming and requires expertise. He/she is also aware of the laws related to accounting that may affect the company.
A bookkeeper ensures that all the records are updated and accurately maintained during an audit. The company should adhere to the rules and regulations set by the Federal, State, and legal organizations. Otherwise, the legal firms could face charges, disbarment, and even shut down due to inability to follow the laws.
New laws of compliance and maintaining accounting standards are constantly emerging. With the help of software customized for legal bookkeeping, it is always a good idea, but doing it all with the help of a legal bookkeeper is a good idea. It’s not only recording debits and credits, but it’s also fitting the transactions into a proper book of accounts.
