Law firms come with uniquely specialized needs in regards to bookkeeping in comparison to other organization or business types. From the tracking of billable hours to the correct management of operating accounts, firm expenses and trust accounts, legal industry bookkeeping services are highly specialized in order to be able to handle the nuanced financial management and reporting needs of law firms.
Bookkeeping is the term given to the structured process of recording every financial transaction undertaken by a business or organization and legal industry bookkeeping services provide the accurate, organized and timely practices that are especially vital to be in place for law firms.
Legal industry bookkeeping services provide proper financial management
It is of vital importance for law firms to be able to keep track of accounts, trust account balances, revenues, and all other forms of financial data for the sake of the effective management of their finances both on a daily and long-term basis.
Accurate bookkeeping allows for financial decisions to be driven by data in regards to the likes of budgets, staffing, growth opportunities, expenses, profit distribution and more. Accurate financial reports are relied on by partners to keep track of the firm’s financial health.
Tax compliance
Law firms have to make sure they are in compliance with a wide array of local, state and federal tax reporting and payment requirements from employment taxes to sales taxes and partnership taxes. Organized bookkeeping ensures law firms can prepare tax documents and filings that are accurate.
