Bookkeeping can be a hassle for lawyers who did not get into their profession to calculate numbers, with the result being that law firm bookkeeping is often delegated to assistants or others with little financial training. This can cause financial records to ridden with errors.
Most lawyers feel time is wasted on administrative tasks which are non-billable but those who try to do the law firm bookkeeping on their own in order to save money can make the situation a lot worse.
Why law firm bookkeeping matters
The success of a firm is dependent on effective legal bookkeeping. It is therefore crucial for law firms to have a skilled professional bookkeeper on hand for the purpose of managing a wide array of expenses, holding money in trust and handling all transactions in an ethical and lawful manner.
Lawyers require sound bookkeeping to make sure that the financial accounts of their firm are up to date, accurate and thorough. All law firms have to adhere to ethical guidelines and while such guidelines may vary in different jurisdictions there are bookkeeping fundamentals that lawyers must adhere to or risk penalties, having their licence to practice law suspended or even being disbarred altogether.
Legal bookkeeping allows for the collection and evaluation of data for the making of data-driven decisions about the finances of a firm as well as to find the most and least successful aspects of a practice for a wiser use of resources.
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