Accounting is an integral part of every business and industry, and a law firm is no exception. The accounting process not only helps in maintaining, accumulating, analysing and recording the financial aspects, but can also provide advisory assistance for better decision making.
There are many law firms that may find their accounting to be in a mess, especially small law firms. But a mess is not something that you cannot get out of. Here, we list down steps you must take to get out of the trouble effectively:
Identify and Implement the Process from Scratch Go back to the basics and start afresh. A big reason for the mess you are currently facing is an improper set-up in the first place. An organised approach is what is critical to get your accounting process right all the way.
Leverage Tools, Technology and Advanced Methods The way you utilise your resources, make the best usage of finest tools, methodology and technology will define how you are going to cope with the requirements of your accounting process. Attorneys are usually fairly understanding of tools and therefore they must make better use of their knowledge to implement a system that can efficiently, precisely and accurately document their accounting and meet other necessary requirements.
Work With the Chart of Accounts A chart of accounts is of utmost importance for your entire account process. This is what you will be relying on to list accounts with right transactions, ensure organised financial structure and keep track of money. As you want your process to be in compliance with the strict regulations and guidelines, ignoring chart of accounts can be a big mistake.
Keep Up With the Financial Transactions through Regular Reconciliation After you are done with a proper set-up, creation of chart of accounts and implementation of automation process with software, now is the time to regularly update your financials so as to keep it properly organised and recorded. For this a regular reconciliation is highly important. Reconciliation is what need consistency and discipline, but is very important as it will help you categorise every transaction, follow cash flow, and subsequently make better business decisions.
Given the above points that will help you extensively, we understand that as per the nature of your work your time is highly valuable. So, you can get a processional that is skilled in handling accounting services for law firms so that you keep your time, focus and energy free to engage in what matters to you most.