Law Firm Bookkeeping & Reporting Services

For one-time clients, you may decide to charge more since you know they may not return and have last-minute requests and needs. Location can play a major role in how much you charge for services. Price for bookkeeping services can vary from state to state. So, it’s important to know how much to charge clients based on location.

For example, if you purchase office supplies for your business, you should have an “Office Supplies Expense” account. But you don’t want to set up separate accounts for legal pads, pens, printer ink, etc. You can add as many accounts to your chart of accounts as you need to prepare accurate and informative law firm bookkeeping financial statements, but don’t let your chart of accounts get too unwieldy. 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.

Recording deposits to IOLTA accounts as income

The Less Accounting approach is more of a hybrid between the do-it-yourself approach and true outsourcing. For their initial plan, you can pay a monthly fee to access their software and manage your books yourself. As your business grows, you can bring on an outsourced bookkeeper who will provide traditional bookkeeping services such as categorizing and reconciling transactions. You’ll also want to decide how your firm will track incoming and outgoing funds. Your business’s accounting method will affect cash flow, tax filing, and even how you do your bookkeeping. You’ll need to choose an accounting method before your firm files its first tax return, and then stick with it on all subsequent returns.

At the year end, you are required to supply all the data to your CPA for tax purpose. During the year, CPA requires data for vat return or GST filling or BAS reports. Proper communication , cooperation and collaboration between your CPA and accountant is must. So that you can save your time by allotting tax matters to your accountant and CPA. You do not want your revenues or other important things leaked.