How to Succeed at Accounting for Law Firms

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How to succeed at accounting and bookkeeping?

Here are the essentials for law firm accounting and bookkeeping success that you should get a handle on ASAP!

💼 Develop a Clear Bookkeeping System

Consistency is the name of the game, so set a regular schedule for financial tasks—daily, weekly, or monthly—to keep your firm on track.

📝 Keep Strict Records

Records are your financial lifeline! From receipts and invoices to bank statements and tax forms, keep them all organized, accurate, and up-to-date. 

🧾 Track Your Tax Deductions

Don’t miss out on tax-saving opportunities! From travel expenses to office supplies, every deduction counts. 

💰 Ensure the Right Bank Accounts are Set Up

Set up your firm with the essential bank accounts—checking, savings, and a separate IOLTA or trust account. This maintains compliance and fosters a secure financial ecosystem for your practice.

📊 Choose Your Method for Accounting

Opt for either accrual or cash basis accounting—each has its benefits. Decide which aligns better with your firm’s needs and goals.

🔎 Always Use 3-Way Reconciliation

Your reconciliation process should include cross-referencing the bank account balance with the trust ledger and the client ledgers. This is the safest way to ensure your accounts are complete, accurate, and compliant. 

By taking these actionable steps, you will set a solid foundation for your business and will be able to seize every opportunity to thrive financially 🚀

And I’m here to support you every step of the way! 

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