Legal Accounting Services
LEGAL ACCOUNTING SERVICES
Our team will customize a financial plan and strategy built to achieve your specific firm goals. We offer a multitude of financial services that effectively manages all of your law firm’s financial and accounting information.
As a law office, it is important for you to maintain documents and records. Maintaining accounting and bookkeeping records are no different. With legal bookkeeping, you will have up to date knowledge of your sales revenue and expenses. Knowing this information gives you the inputs needed to make strategic decisions. In addition, you’ll have instant access to the clients with open invoices. Regardless of whether you bill fixed, hourly, or contingent fees, you’ll have a clear understanding of who owes you. Our team provides you with the insight you need to be profitable.
Accurately filing a law firm tax return is more difficult than it sounds. With tax laws constantly changing, it’s making what was once simple filings, more complicated. Which is raising more taxpayer questions. Our team of CPAs makes sure you take full advantage of tax deductions and credits you’re entitled to. We not only file your business’ tax return but that of yourself and partners. We make it easy to file multi-state returns and other filings. We can also provide you with an annual tax strategy plan that focuses on saving you the maximum in taxes.
If you are not 100% satisfied with your financial results, its time to consider CFO services. CFO services take your firm to the next level by digging deeper into your firm’s finances. You already know that the more billable hours, the better. But knowing that alone provides you with little to no insight into how you can improve your current operations. It’s critical to know how every area of your firm is performing, so you can make the right choices to grow. Are you growing and operating as efficiently as you could? Our CFO services will help you answer this and more.
Why Use Legal Accounting Services?
Accounting is difficult, even for a lawyer. It consists of complex rules and regulations, which if not followed, leads to hefty penalties by the IRS.
Beyond the compliance component, you need to know your firm’s numbers! Keeping up with your financial results each and every month provides you with certainty and insight into your firm’s financial health. As a business owner, it can be easy to put your head down in client work, but it is important to keep a big picture view of your business. Legal accounting services help you to do that.
Law firm accounting services give you the freedom to work on other areas of your business. You would not need to worry about learning complex accounting and tax rules yet, you still would have the assurance that your accounting is done correctly.
Benefits of Legal Accounting
Legal accounting helps you keep a long term perspective when it comes to your firm’s growth and sustainability. Having your financial activity and reports on a monthly basis ensures that you are keeping your finances at the forefront of your business. In addition, legal accounting helps to:
- Organize and report on all of your transactions in a way that is easy to understand
- Minimize your tax burden by maximizing on all tax deductions that are applicable to you
- Develop budgets and forecasts used for strategic planning
- Implement profitable decision making
WHY LYFE ACCOUNTING FOR LEGAL ACCOUNTING?
Our team has direct experience with doing legal accounting. You are assigned a designated accountant who will work closely with to help you achieve your goals. Rest assured you are in very capable hands with someone who knows your industry.
Our team consists of Certified Public Accountants, Registered Investment Advisors, Enrolled Agents, and Tax Preparers. We have the qualifications and experience to service all of your legal accounting needs.
Accounting in every industry is different. Which is why working with our team will be a pleasure for you. We have specific experience working with different law firms.
Law Firm Accounting Considerations
- Handling of Client Funds. All client funds are not treated equally for accounting purposes. Depending on what stage of the client service process they pay you, will determine how those funds are handled. For example, if you receive retainers in advance, this represents a liability to your firm until it is earned.
- Commingling Funds. Commingling of funds should never occur. In legal accounting, funds you receive in advanced should never be confused with the funds you earn. There needs to be a clear distinction of this on your financial statements.
- Client Costs. For every client, there are costs associated. It is important to make sure that all client costs are recorded and assigned accordingly.
OUR METHODS TO LEGAL ACCOUNTING
We take the time to catch up your books to the present month.
We set up your chart of accounts so that reviewing your financial statements is easy and tax return filing is a breeze.
We gather data. Whether you use Paypal or a credit card processor, we incorporate that information into your books. We will also connect your financial accounts to your bookkeeping software and begin data entry.
To ensure accuracy on your financial statements and ultimately your tax return, we reconcile your accounts.
We prepare your financial statements. The financial statements include income statements and balance sheets.
We help you use your reports and KPIs to make informed, profitable decisions.
Take the Necessary Step To Grow Your Law Firm
What’s your goal?
Maybe you want your firm to grow exponentially in the next year.
Or maybe you just want to maintain organized books throughout the year so you can file taxes more efficiently.
The key with either one of these goals is you need to have an accounting process in place to achieve them. The unique thing about accounting is that it is an area of your business that impacts all of the other areas. Marketing, operations, human resources, etc. all are impacted by your accounting department.
The insights a proper accounting system provides is endless. Having this information at your disposal makes growing and improving your business easier and efficient.
“My experience with LYFE Accounting was nothing short of amazing. Krystal is professional, detail-oriented, and truly cares about her clients. I will continue to use LYFE Accounting for all of my personal and business tax needs as well for my business bookkeeping needs.”
– C. James