Bookkeeping for Law Firms
Remote Bookkeeping & Accounting for Busy Attorneys
Knowledgeable, candid guidance and immaculate reports for your firm
Precise Accounting & Financial Counsel for Law Firms
Law firms balancing cases and clients need well-kept books to maintain operations and plan for a successful future.
Managing your books in-house, however, is an often thankless task that can fall through the cracks until problems start to pile up.
Instead of constantly cleaning up the accounting, hand your firm’s bookkeeping off to a remote partner that can function as an extension of your in-house team. Partner with Northstar Bookkeeping for bookkeeping services, administrative support, and a promising financial future.
Services for Law Firms Include:
Bookkeeping & accounting
Comprehensive accounting reports
Invoice tracking & management
Consulting
Financial analysis
Profit & loss
Balance sheets
Reconciliation
Support for Growth
With NorthStar Bookkeeping, Your Only Direction is Forward.
Client
Experiences
Law Firm FAQs
What is unique about bookkeeping for law firms?
Bookkeeping for law firms has unique features that set it apart and make working with a professional who has specialized experience crucial.
Here are features that make it distinct from standard bookkeeping:
- Trust accounting and compliance because law firms often manage client funds through trust accounts; mishandling trust accounts can result in severe penalties or even disbarment.
- Revenue recognition because law firms often operate on a cash or accrual basis but must also account for unearned income, such as retainers, which cannot be recognized as revenue until services are rendered.
- Expense allocation because law firms must allocate expenses accurately across cases or clients, especially when billing clients for reimbursable expenses like court fees.
- Billing and invoicing, especially when tracking billable hours, flat fees, contingency fees, or hybrid models, to ensure timely invoicing while maintaining accuracy.
- Tax compliance due to complex and unique tax considerations law firms face, such as deducting client-related expenses.
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What bookkeeping challenges do law firms face?
Law firms face several unique bookkeeping challenges due to the complex nature of legal accounting, regulatory compliance, and the intricacies of managing client funds.
Common challenges law firms face include trust accounting compliance, irregular cash flow, complex expense management, revenue recognition, data entry errors, regulatory compliance, and handling multiple attorneys with complex pay structures.
If not adequately addressed, these challenges can result in inefficiencies, compliance risks, and a significant financial strain.
At NorthStar Bookkeeping, we help clients overcome these challenges through:
- Trust account management
- Cash flow forecasting
- Detailed expense tracking
- Revenue recognition systems
- Compliance support
- Accurate and up-to-date bookkeeping
How do bookkeepers help law firms?
Bookkeepers play a vital role in helping law firms manage their finances, maintain compliance, and streamline operations.
Given the unique environment in which law firms operate, bookkeepers are vital to reducing risks and improving overall business performance.
Here’s how bookkeepers can help:
- Managing client trust accounts
- Tracking billable hours and retainers
- Monitoring and forecasting cash flow
- Integrating efficient and effective systems and processes
- Preparing accurate financial statements
- Monitoring income and expenses and recognizing revenue
- Streamlining billing and invoicing
- Ensuring compliance and reporting
- Financial planning and tax preparation
- Reducing the administrative burden on lawyers and partners
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Move Your Organization Forward With NorthStar
Start your journey with NorthStar by scheduling a conversation.
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