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Accounting and Bookkeeping Problem Faced by Businesses in the Legal Practice Industry

The legal practice industry is an industry with multiple sectors or generally called an area of practice. A firm’s area of practice can be litigation, corporate, annulment, criminal, or any other practice. However, you must understand the importance of accounting and bookkeeping for your legal practice service firm. Accounting for lawyers can be complex as the number of cases and clients increase. Accounting and bookkeeping for law firms are not something that is a core function for your firm, but they can be a vital function like any other business. But some accounting and bookkeeping challenges exist in the legal practice industry, which are -

Law firm chart of accounts

A legal practice firm manages a lot of clients’ funds in settlements, retainers, escrow funds and so on. These funds must be work properly to ensure that every individual client fund is distinct from each other. Also, the firm’s fund should be well separated from its clients.

Matter Cost Accounting

Matter cost accounting is related to cost incurred on individual clients. This might sound sounds simple, but it is a complicated process. Advanced client costs appear on the Balance Sheet while reimbursable cost shows up on the Profit & Loss Statement.

Separate Billing & Accounting Systems

Law firms generally use two separate systems for their accounting and billing. One must not fail to integrate its accounting and billing system to help maintain legal accounting compliance and avoid errors or more significant issues like billing issues, duplication of data, and missed revenue in the future.

How does Whiz Consulting Help You Tackle these Issues?

Whiz Consulting is dedicated to providing accounting and bookkeeping services for legal practices & lawyers that help the firm serve clients better without worrying about accounting, bookkeeping, and tax administration of your law or legal practice.

Accounting for lawyers does not have to be complex, and with our service, we can ensure that you can focus on serving your clients with impressive service while we make accounting and bookkeeping for law firms flawless and easy for you.

Our expert will perform all bookkeeping and accounting services for law firms and assist you to tackle all accounting challenges specific to the legal practice industry. We keep up to date with all technological advancements to help you integrate multiple accounting software for increased productivity.

Accounting & Bookkeeping Services We offer for Legal Industry at Whiz Consulting

Bookkeeping Service

We provide the following bookkeeping services –

  • Bank & Credit Card Reconciliation
  • Accounts Receivable & Payable Management
  • Payroll Calculation & Tax Payments
  • Inventory Management & Reconciliation
  • Monthly Financials Statements
  • Financial Ratios Reporting
  • Budgeting Quarterly/Yearly
  • Cash/Revenue/Expenses Forecasting
  • KPI Reporting
  • Strategic Advice on Managing Revenues, Expenses & Cash Flows
  • Planning Individual & Corporation Taxes
  • Finalizing State & Federal Taxes and Payments
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Accounts Payable

We make sure you never breach payment terms with your clients by preparing a daily, biweekly or weekly report for accounts payable and sending the same to you on time. Our outsourced accounting service covers the scanning of invoices to ensure payment terms and other processes that adhere to your company policy. It will be our responsibility to ensure that things are exactly as they should be and inform you when they are not.

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Accounts Receivable

If you are not sure how much you ought to receive from your debtors, you cannot expect your business to sustain, let alone talk about growing. It is essential to make sure you receive what the others owe you that too on time to keep that cash flow moving. It is our duty to ensure you receive money from your debtors on time. We provide this by reminding you of the overdue payments or by contacting the clients directly on your behalf.

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Financial Reporting

With years of experience working with US clients, we know exactly what is needed by the regulatory bodies and produce the same for you. We got you covered, whether financial statements, periodic reports, debtor reports, bank reconciliation reports, financial analysis reports, ratio analysis or any ad-hoc report. We can even get in touch with your CPA and make sure everything is there as and when he wants.

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Payrolls

We look after payrolls for our clients, including pay calculation, reimbursement, deduction, payslip generation, amount to be withheld for federal and state income tax, social security and Medicare contribution amount, payment of tax, and tax return preparation. We will be happy to look after all or a part of them for you. Our online accounting service will help you keep a vigilant eye on the complete payroll activity for your business.

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TAX Filing

With the experienced Accountant and CPA in our team who has been serving USA Clients for an extended period, we can prepare and lodge your tax returns and also planning your tax liability in the most efficient way

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Business Set-Up Assistance & Advisory

We help you out in structuring your business that suggests which business structure will suit you best among Sole Proprietorship, Partnership, Corporation (C Corp, S Corp, B Corp & Non-profit) and Limited Liability Company (LLC).

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Why Choose Whiz Consulting for your Accounting and Bookkeeping Service?

We at Whiz Consulting provide Accounting and Bookkeeping for the Legal Practice Industry in the USA irrespective of your area of practice and scale of operations. f you are looking for accounting & bookkeeping services for legal practices & lawyers, here is why you should choose us –

Automation

We use high-end updated accounting and bookkeeping software to ensure that your finance is error-free and is always up to date with existing practices.

Decade long Experience

We have vast knowledge and decade long experience of how the legal practice industry functions and what best will work for your organization

Reduction in cost

You can save up to 50% cost compared to hiring a local or in-house accountant and bookkeepers compared to hiring our service, where you will have a pool of resources serving you.

Business Growth

With our service, you can focus on serving your client in the best possible manner allowing you to grow your business.

Boundless Consultation

Connect to us on phone or e-mail with our experienced professionals for consultations and any queries or supports.

Consistent Report

Get access to regular detailed reports that enable you to make a better financial decision for your firm.

Frequently Asked Questions (FAQs)

Legal accounting is the accounting service provided specifically for legal firms or lawyers. It helps them manage records of their financial inflows and outflows, together with their financial statements. The legal accounting process also involves drafting payment policies, handling trust accounts, and tax filing while following the legal compliances required as per the industry.
Accounting services for legal firms and lawyers help them manage their financial information and status. An accountant for the legal firms organizes their accounts, drafts payment policies, handles their trust accounts, and minimizes their tax expenses. Accurate accounting helps in business expansion and building a good reputation by preparing its financial statements according to the legal compliance required. The accounting for law firms and lawyers needs to consider the factors unique to the industry, such as Trust accounts, retainer fees, etc., as per the regulations for the industry. Only a professional accountant can manage these special requirements without any discrepancies.
One of the biggest differences between legal and regular accounting is the accounting basis. A legal accountant needs to know how law firms work and the regulations to follow. However, for regular accounting, just the accounting knowledge is enough. The invoices of the law firms are required to be dealt with various factors like sales tax, etc., before they can be deposited. But there is no such requirement in the case of regular accounting, and their invoices can be directly deposited into the banks.

Legal accounting has some special considerations that should be considered, such as CTA (Client Trust Accounts), IOLTA (Interest on Lawyers Trust Accounts), Retainer fees, and Partner compensation. These aspects don’t exist when it comes to regular accounting.
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