How Best To Maintain Law Office Financial Records

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How Best To Maintain Law Office Financial Records
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• Record keeping is an important aspect of any
  attorney law office, and while you may be an
  expert in the field of law, you may not be quite
  so knowledgeable in areas of accounting and may
  not feel confident knowing how to accurately and
  efficiently maintain your law offices financial
  records.
• Ensuring that you understand the basics of
  maintaining your financial records as an
  attorney, and using specialized accounting
  software or engaging with the services of an
  accounting firm, will help you to keep your
  practice safe, secure and legally compliant.

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• Accounting systems for law offices
• Strong internal controls to monitor revenues and
  expenses, are vital components of a good
  accounting system, and are applicable to most
  small businesses in general.
• As an attorney with a law practice, your
  business must also have those tight internal
  controls within the accounting system, both fees
  billed and costs and expenses advanced for
  clients. Your fee is based upon the amount of
  time that you spend on your clients projects,
  whether bills are retainer specific, annual
  retainer, contingent fee or referral fee. So
  detailed records need to be maintained to
  accurately track the time spent on each case.

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• Manual or electronic systems can be used to track
  your time and any expenses that are chargeable.
  Accounting software enables you to record a
  single frequently recurring transaction, and for
  attorneys, the cash receipts journal in the
  software gives you a breakdown of fees received
  and expenses reimbursed, including an allocation
  between regular overhead expenses paid and the
  costs that a client has paid. How complicated the
  cash receipts journal will be, depends upon the
  law firms size, but the most basic elements are
  the bank statement and check copies.

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• Other vital records for attorneys
• Most attorneys, in addition to the records
  mentioned above, maintain at least the following
• Appointment book this contains records of
  appointments, and usually appears in the format
  of a calendar
• Accounts receivable journalthis shows the
  receivables billed but not collected
• Client ledgers a description of services
  rendered, charges and credits, a summary of
  charges that are non-billable and final invoices

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• Case time records each clients times are
  recorded
• Cases-progress register legal works that might
  still be in progress are summarized here and
  usually organized using the clients name.
• Time summary reports clients or attorneys can
  usually sort these and theyll contain
  information such as, time, dates worked, billings
  and any other chargeable expenses.
• Most attorneys, no matter what their specialty,
  will keep at least these basic books and records
  on file, and many lawyers will use accounting
  software and legal practice management software
  to best maintain their books and records in an
  electronic format.

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• If you are an attorney and need help maintaining
  your financial records, there are many
  bookkeeping and accounting firms out there who
  will specialize in your field, and will be able
  to give you accurate and up to date advice and
  guidance for your law firm.
• Koza Consulting Group, headquartered in San
  Diego, California, is a premier provider of
  strategic HR, IT, Bookkeeping and Payroll
  solutions specifically developed for small and
  mid-tier companies. If you are looking for
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  resources consulting firm, Visit us at
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