Bookkeeping for Lawyers
Monthly Bookkeeping, Payroll, Financial Statements or Tax returns for Legal practitioner and Law Representatives
Business Tax return filing by Certified
CPA / Enrolled Agent
(Starts at $350)
Bookkeeping For Lawyers and Law Firms
Lawyers and law firms don’t have time for bookkeeping and accounting. Neither should devote their time.
Bookkeeping and accounting are critical aspects of any business, including law firms. Accurate financial records and reporting not only ensure compliance with regulatory requirements but also provide valuable insights into the financial health of the business.
However, lawyers and law firms often have complex accounting needs, such as trust accounting, which require specialized knowledge and expertise. For legal businesses, it requires them to compile it for various governing bodies. Therefore, we accurately manage our clients’ accounts to help them flourish.
We also help our clients with the smooth integration of their online websites with accounting software. In addition, we understand the intricacies of a legal business and understand trust accounting for your legal business.
Accounting for lawyers needs a detailed understanding of bookkeeping requirements for lawyers in compliance with various governing bodies.
Outsourcing accounting and bookkeeping tasks to a specialized firm can help law firms save time and resources while ensuring compliance with regulatory requirements and accurate financial reporting.
Specialized accounting firms like Meru Accounting can provide tailored solutions to meet the specific needs of law firms, including integration with legal software and expertise in trust accounting.
Ultimately, whether to outsource accounting and bookkeeping tasks or to manage them in-house is a decision that each law firm must make based on its specific needs and circumstances.
However, outsourcing can be a viable solution for law firms looking to streamline their accounting processes and free up time and resources for other aspects of their business.
What are receivables in a law firm?
In a law firm, receivables refer to the amount of money owed by clients for legal services provided. This includes fees for hourly billing, flat fees, contingency fees, or other types of legal fees.
Receivables are typically recorded as assets on the law firm’s balance sheet and are an essential part of the firm’s cash flow management.
Managing receivables effectively is crucial to maintaining a healthy cash flow for the law firm. The longer it takes for clients to pay their bills, the more strain it puts on the firm’s cash flow.
Therefore, it is essential to keep track of client billing and follow up on overdue accounts.
Law firms can use various methods to manage receivables, including:
Billing practices
The law firm should have clear billing policies that are communicated to clients in advance. The billing process should be transparent and accurate, with detailed invoices that clearly explain the services provided and the fees charged.
Timely invoicing
Invoicing should be done promptly and accurately, preferably within a few days of completing the work. Delayed invoicing can lead to delayed payments and may harm the cash flow of the firm.
Payment terms
The law firm should establish clear payment terms with clients, such as net 30 days or net 60 days. Payment terms should be communicated in advance and included in the engagement letter or contract.
Follow-up on overdue accounts
The law firm should have a process for following up on overdue accounts. This may include sending reminders, making phone calls, or engaging a collections agency if necessary.
Incentives for early payment
The law firm can offer incentives for clients who pay their bills early, such as a discount or a reduced interest rate.
Services offered by Meru Accounting:
What are the important core aspects of accounting in a law firm?
There are several core aspects of accounting in a law firm:
- Trust Accounting: Lawyers are required to keep client funds separate from their own funds in a trust account. Trust accounting involves maintaining accurate records of client funds, including deposits, withdrawals, and interest earned. This includes reconciling bank statements and ensuring compliance with legal and ethical requirements.
- Expense Tracking: Law firms have various expenses, including rent, salaries, office supplies, and advertising. Accurate tracking of expenses helps manage cash flow and ensure profitability.
- Timekeeping: Law firms bill clients based on time spent on a case or project. Accurate timekeeping is crucial to ensure that clients are billed correctly and to track billable hours for each lawyer.
- Income Tracking: Law firms generate income from various sources, including client fees, settlements, and court awards. Accurate tracking of income is essential to determine the profitability of the law firm and prepare accurate tax returns.
- Financial Reporting: Law firms must prepare financial reports, including income statements, balance sheets, and cash flow statements, to monitor their financial performance and comply with regulatory requirements.
- Tax Compliance: Law firms are subject to various tax requirements, including income tax and sales tax. Accurate accounting is crucial to ensure compliance with tax laws and to prepare accurate tax returns.
- Budgeting and Forecasting: Accounting plays a critical role in budgeting and forecasting for a law firm. It provides insights into revenue and expenses, helps identify trends, and supports informed decision-making.
- Profit sharing: Profit sharing among partners is a matter of partnership agreement and should be based on agreed-upon criteria, such as origination credit, working attorney credit, or some combination of the two.
- Compliance with record-keeping laws: Law firms are subject to various legal and ethical requirements related to record-keeping, including client confidentiality and retention of financial records. Accurate accounting is crucial to comply with these requirements.
- Branch accounting: This involves maintaining separate records for each branch of the law firm, including income, expenses, and client trust accounts.
- Staff cost and payroll management: This includes compliance with payroll laws, including withholding taxes, paying salaries, and providing benefits.
Outsourcing accounting services to a specialized accounting firm like Meru Accounting can help law firms focus on their practice and client acquisition while ensuring accurate and compliant accounting practices.
What are Payables in a law firm?
In a law firm, payables refer to the money owed by the firm to its vendors, suppliers, and other service providers. Payables include expenses such as rent, utilities, office supplies, salaries, and benefits for employees, as well as fees paid to external service providers such as consultants, accountants, and IT support.
Managing payables effectively is crucial to maintaining a healthy financial position for the law firm.
Law firms can use various methods to manage payables, including:
- Accurate and timely recording of expenses: All expenses should be recorded accurately and timely in the firm’s accounting system. This ensures that payables are accurately tracked and paid on time.
- Payment terms negotiation: Law firms can negotiate favorable payment terms with their vendors and suppliers, such as longer payment terms, discounts for early payment, or payment plans. Negotiating payment terms can help the law firm manage cash flow and maintain financial stability.
- Payment prioritization: Law firms should prioritize payments based on the importance of the expense and the payment terms negotiated. For example, expenses with shorter payment terms and higher penalties for late payment should be paid first.
- Regular review of payables: Law firms should regularly review their payables to ensure accuracy and to identify any errors or discrepancies. This helps to avoid overpayments, underpayments, or duplicate payments.
- Use of technology: Law firms can use accounting software and other technologies to streamline the payables process, reduce errors, and improve efficiency.
By managing payables effectively, law firms can improve their financial stability, maintain strong vendor relationships, and reduce the risk of financial errors or fraud.
Why choose Meru Accounting for lawyers and law firms?
- Expertise in legal accounting: Meru Accounting has a team of experienced and skilled accountants who are well-versed in the intricacies of legal accounting. They understand the unique accounting needs of law firms, including trust accounting, receivables accounting, payables accounting, and compliance with regulations.
- Customized accounting solutions: Meru Accounting provides customized accounting solutions to meet the specific needs of each law firm. They work closely with their clients to understand their business and accounting requirements and provide tailored solutions that fit their needs.
- Integration with legal software: Meru Accounting has expertise in integrating accounting systems with legal software such as Clio and Leap. This ensures that accounting processes are streamlined, efficient, and accurate.
- Cost-effective services: Meru Accounting offers cost-effective accounting services to law firms, helping them save on the cost of hiring in-house accounting personnel. They offer flexible pricing plans based on the needs of each client, and their services are scalable to accommodate the growth of the law firm.
- Quality and accuracy: Meru Accounting prioritizes quality and accuracy in their accounting services. They ensure that all financial records are accurate, up-to-date, and compliant with regulations, giving law firms peace of mind knowing that their financials are in good hands.
In Conclusion:
Meru Accounting is a reliable and trustworthy accounting firm that specializes in meeting the unique accounting needs of law firms.
Our expertise, customized solutions, integration with legal software, cost-effective services, and commitment to quality make us a top choice for law firms looking for accounting services.
Meru Accounting provides world-class services that cater to all the needs of cloud accounting and bookkeeping of your business.
We work on the best accounting software like Xero and Quickbooks, as well as add-ons that will make sure all your work is up-to-date.
Help you with switching from your traditional software to Xero and Quickbooks.
We also manage VAT, BAS, Sales Tax and Indirect taxes for you so you are always ready at the end of the financial year.
When you choose to outsource your accounting work with us, it benefits you in the following ways:
- 1. Cost-saving
- 2. Access to skilled and experienced professionals
- 3. Better management of books of accounts
- 4. Decreased chances of errors
- 5. Improve business efficiency
- 6. De-burdens in-office employee’s dependency
- 7. Better turnaround time
We work on virtual technologies like Team Viewer, Virtual Private Network (VPN) to share and access data from your system.
You have to share your accounting software login details.
Through that, we complete all of your work and update it on the cloud, so you can have access to your data from anywhere and at any time.
Software is not a barrier for us. Due to our strong and professional accounting knowledge, we can prepare your books in almost any of the accounting software.
Our experts are always all ears to listen to your queries regarding bookkeeping and accounting or our services. You can contact us anytime by visiting: Contact Us page.
We provide our bookkeeping services at the rate of US $10 per hour. So, you only need to pay for the amount of time actual work is done.
We take certain preventive measures to secure your data, like:
- Cyberoam Firewall to prevent any kind of foreign threat.
- Dual-step authentication
- Implement anti-virus
- Limit user access so that login details are with a few people.
Meru Accounting work on some of the best accounting software’s like:
- Xero
- Quickbooks
- Netsuite
- Saasu
- Wave
- Odoo
Along with that, we also work with many add-ons like Workflow Max, Receipt Bank, Slack, TradeGecko etc., to extend your software’s capacity and improved work experience.
To book for trial, call us on our numbers or Please fill out the form here.
We have combined team of Professionals. Seniors are generally Certified Chartered Accountants. Junior Bookkeepers are having Qualifications like Bachelors of Commerce, Masters of Commerce, Masters in Business Administration in the subject of Accounts and Finance, Intermediate level Qualification of Chartered Accountancy, etc.
For information visit our work methodology page.
We prepare a checklist of information required for bookkeeping and send you at timely intervals so as to ensure that we can do bookkeeping faster.
We can provide to you once we move ahead in our interview.
We serve clients on MYOB and have expertise working in Essentials, Account Rights Plus, etc.
Yes, We are presently processing Payroll for Number of clients in US , UK and Australia and take care of complete payroll activities.
Goods and Service tax (GST) is levied on sales of all the goods and services in Australia. GST is generally chargeable at 10% of value of sales.
Business Activity Statement is a predefined form to be submitted to the Australian Tax office by all the business persons in order to report on their all the tax obligations during the period covered.
BAS is generally required to be filed quarterly by various businesses.
Yes, Owner of the business can prepare sign and lodge the tax return on his own. Its not mandatory that the Tax return needs to be signed by an EA or CPA.
No , its not mandatory that it should be prepared by only CPA or EA. It can be prepared by anyone who has PTIN.
We have Enrolled Agent who has the Authority to sign the documents for our clients after completing the through professional check.
Meru Accounting has its operational centre in India and hence the prices are quite less as compared to US based CPA’s and Enrolled Agents.
Meru Accounting has a team of Tax experts. Each Tax expert prepares around 300-400 Tax returns every year for various CPA’s in United States and Individual Businesses like yours. Due to this vast Experience and Robust Quality Check processes in place we can ensure you about correct Tax planning for your firm.
