People tend to forget that law firms are just like any other professional service business. One aspect, however, that often separates law firms is that they usually accept retainers before starting work. However, the retainer remains as a property of the client until the law firm successfully finishes its responsibilities. This billing method creates numerous law firm bookkeeping challenges. These problems include tracking client ledgers, separating these ledgers from each other, and avoiding the mix up of retainers deposited single bank accounts. Your law firm needs to make sure that it does not accidentally use the money from one client on behalf of another or vice versa. This is why practical management and accounting is essential.
When invoices are paid in advance, the related future expenses should be taken into consideration. It should be logged separately from other incurred expenses and definitely from your income accounts. Afterward, you will have to match your revenues to your expenses to determine the profitability of your business. NetSuite allows you to create a general ledger that can quickly accommodate changes in your business. Instead of creating something that’s static, NetSuite creates a dynamic ledger that can easily be adjusted with just a few clicks of a button. This feature results in better visibility and flexibility that can help you enhance audit trails and identify sources of revenue.
NetSuite makes the process of optimizing accounts receivable and controlling cash flow easier. It can help you shorten the credit to cash cycle while allowing you to improve the services that you offer to your clients. NetSuite is a tool that helps you bring your collection process to the 21st century. It offers an end-to-end AR experience that simplifies the streamlining and automation of your collections management and credit terms.
At the end of the day, your law firm depends on steady cash flow. An accurate accounting of matter costs is a must. Some of these expenses are billed to the client instantly, while others are collected when and if there is a settlement, depending on the nature of the matter. All of your costs need to be accounted for accurately, and our team of law firm CPAs is able to help you create a process to streamline your AR process. With most businesses, this is straightforward. However, with legal accounting, all expenditures cannot be treated equally. Our team of law accountants is familiar with the unique challenges that law firm bookkeeping can have on the efficiency of that law firm’s tax planning.
NetSuite offers a configurable tax engine that was designed to help your law firm stay in compliance with federal and state tax laws. NetSuite is also able to work with all known global currencies and exchange rates. With NetSuite, you can save time, reduce costs, and minimize errors in your tax management responsibilities. Our law firm CPA will work with you to explain the accounting features of NetSuite that can help you enhance your business. Our end goal is to help you efficiently grow your business. Click the button below to schedule a complimentary discovery call with one of our law firm financial advisers.
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