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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

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 –


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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