Law firms rely on accurate and proper accounting practices to comply with tax laws, ensure financial viability, and serve customers and clients. Accounting applications that utilize API integrations automatically draw information from various sources to meet this goal, streamlining the flow of resources from one application to the next. CLIO, a software system employed in legal practices, represents one such source for integration.
QuickBooks Online Integration Law Firm Accounting Features With CLIO
One of the benefits of working with CLIO is its superior accounting integration with QuickBooks Online. This integration allows law firms to seamlessly sync trust accounts from one platform to another, eliminating the hassle of having to re-enter the same material in QuickBooks Online. CLIO syncs with QuickBooks Online to record pertinent information such as invoices to law firm clients, payments received, advance fee deposits, and escrow accounts. The fully automated trust workflow between the two programs allows law firms to cut down on the time spent recording data, giving them more time to focus on expanding their business.
The Importance of Accurate Trust Accounting
Client trust accounts contain proceeds from personal injury verdicts, settlements, and real estate transactions. Clients may also deposit money so that the law firm can pay filing fees, court reporters, investigators and others who provide services for the firm’s activities. When dealing with such sensitive information, accurate trust accounting must be a top priority. Inaccurately recording and reporting client trust account activities can lead to a multitude of legal ramifications and a lack of trust from clients.
The trust workflow features allow law firms to enter the deposits into CLIO. From there, the synchronization takes the trust information to QuickBooks Online and the bank accounts the firm uses for trust accounts. This eases and automates the reconciliation of accounts and promptly alerts the firm or its law firm accountants to any discrepancies and the need for corrective action.
Tax Planning and Preparation for Law Firms
Online integration accounting aids our law firm accountants in meeting the tax planning and preparation needs of our clients. Data from CLIO can be beneficial when preparing tax forms and providing tax preparation consultation services. For instance, your law firm may need to issue Form 1099s to investigators, private process services and other vendors of the firm. With the assistance of CLIO, our law firm accountants prepare federal and state tax returns and withhold the proper amount of payroll taxes. Data originating from CLIO can help our accountants answer questions regarding your firms’ tax liability, self-employment taxes, and a myriad of other tax-related issues.
Law Firm CFO Advisory Services
Our law firm CPA’s are experienced in analyzing the performance of a business. With data from both CLIO and QuickBooks Online, our CFO advisory professionals can see the types of cases that are most frequently taken at the firm, analyze billing rates and find areas for the firm to improve revenues and reduce waste. Profit and loss statements show our law firm accountants the major expenses of the firm, while balance sheets and their display of accounts receivables can reveal how well the firm collects on invoices. The integration of QuickBooks and CLIO makes the analysis of billing information and important client matters possible.
This blog article is not intended to be the rendering of legal, accounting, tax advice or other professional services. Articles are based on current or proposed tax rules at the time they are written and older posts are not updated for tax rule changes. We expressly disclaim all liability in regard to actions taken or not taken based on the contents of this blog as well as the use or interpretation of this information. Information provided on this website is not all-inclusive and such information should not be relied upon as being all-inclusive.