Solutions

Accounting and Bookkeeping Challenges Faced By Law Firms

Accounting and Bookkeeping

One of the biggest challenges that the law firms face when they establish their law offices is with bookkeeping and accounting. If the bookkeeping is done poorly, a law firm can incur huge financial losses leading to sometimes even shutting down the office. Having a trained set of staff that have a habit of managing these tasks meticulously can help you and your paralegals focus on other core responsibilities. However, it is always not feasible to immediately find trained staff as most of these tasks are now being outsourced to companies that are specialists in these.

With digitalisation, files and documents are stored electronically in case management tools and remote access is even convenient now post pandemic. Therefore, you do not need to be in the physical office to complete these.

TLB has a trained team that can effortlessly help you overcome with the book-keeping and accounting challenges. The team follows a procedure that has been mapped to the set processes created by TLB.  

TLB’s practices that take care of the Bookkeeping Issues  

TLB’s market researchers analysed that the first focus has to be in understanding the various ways how a law firm generates revenue to manage the bookkeeping and accounting work well. You could be having money coming directly into your accounts, or via checks or via settlements. Keeping a track of these in your client files can be a single most challenging issue as there can be hundreds of documents to deal with. It is perplexing to keep a track of your client funds, which your client has the exclusive right upon it.  Therefore, following a process for appropriate bookkeeping and accounting can resolve those frequent errors.  

  1. Keeping Track of Revenues: Revenue tracking is a critical task and any amiss can cause huge financial burden for you. TLB records all the incoming and outgoing communications regarding the revenues and accounts them in the respective client files. The invoices are stored and linked appropriately. The income statements are revisited at the end of every month. TLB’s team can chase payments to ensure they are not delayed. If your law practice involves having a lot of bills coming from the hospitals for your clients, regular filing and calculations are extremely important especially for settlement purposes, which TLB does them as soon as they are received.  
  1. Keeping a Track of reports: If your reports are not looked at regularly, there are chances that you will miss critical things pertaining to files.  TLB’s team frequently visits the old and new reports and keeps a note of the important pointers that you may require during the course of the case. If you need assistance with tax computation, TLB can also assist you with that aspect as well.  
  1. Tracking the Statute of Limitations or Key dates:  Time is the essence in legal matters. If an SOL is missed, then you can lose your case. Every individual file in your cases is looked at thoroughly to note all the important upcoming dates and the team alerts you well ahead of time.  
  1. Updating your Files or Books Regularly: If a case hasn’t gone into archives yet, then they need to be looked at on a daily basis. The communications related to those cases, needs to be updated regularly. If its not done, then a backlog is created, and it becomes difficult to accomplish those tasks later. TLB’s team will not allow you to fall into a cycle that you can’t get out from. They will reconcile with the books on a regular basis and make sure everything is in place.  

Conclusion 

Bookkeeping is not so tedious if it is managed well. Your practice area can be anything, but you need a robust bookkeeping team. Hiring a full-time employee to do bookkeeping is being replaced by teams from LPOs like TLB that can provide a group of staff to help law firms with bookkeeping. It is not easy for a single person to manage everything for a law firm especially if they have a high case load. It becomes expensive to hire more than one person in-house, which can be managed by lower costs by a team when you outsource it. 

Contact us to know more about the bookkeeping and accounting services offered by TLB

contact@thelegalbase.com

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