IBN is a trusted finance management service provider for legal service businesses. Our expert team can help you effectively manage revenue and manage invoices in several LEDES formats.
Don't let bookkeeping errors cost you time and money. Contact us today to get on track and stay there.
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Just when you think it's over, there's more to uncover. We’ve seen legal companies face the following challenges:
Some clients prefer flat fees, while others prefer hourly billing; tracking time and billing for these clients separately is a challenge for legal service providers, especially if multiple timekeepers work on a matter or the client has a request for a specific LEDES format.
Managing Cash Flow
Ensuring enough cash is available to cover expenses, such as salaries, rent, and other overhead costs, while also maintaining adequate reserves to fund future growth and investments. Failure to manage cash flow effectively can result in financial instability or even bankruptcy.
Determining when revenue should be recognized can be complicated, particularly if there are multiple phases or milestones in a matter. Additionally, ensuring that revenue is correctly allocated to each client is a challenge.
Calculating Client Profitability
Determining the profitability of each client requires separate account handling for each client. This can be more challenging if there are multiple clients involved in a matter or if the expenses are shared between multiple matters.
Maintaining accurate records for trust accounts and ensuring compliance with trust accounting rules is a pain for legal service businesses, especially when the account is used for several client matters.
Managing Vendor Payments
Legal service providers often work with a variety of vendors, including software providers, office supply companies, and other service providers. Keeping track of all vendor invoices and payments can be a time-consuming and complex process.
Our bookkeeping process for legal service businesses is designed to be streamlined and efficient, allowing you to focus on your clients while we handle your financial records. Our process begins with an initial consultation to understand your specific needs and preferences. We will work with you to determine the software and other tools that will be most effective for your business.
Once we clearly understand your needs, we transfer your financial data to our secure servers using advanced encryption and security protocols to protect your data. Our team of experienced bookkeepers then performs daily bookkeeping tasks such as transaction recording, expense categorization, bank reconciliation, and accounts payable/receivable management. We also manage your trust accounts and ensure compliance with industry regulations.
Throughout the process, we keep you updated on your financial status through regular reports and communication. Our team is always available to answer any questions you may have and to provide guidance on financial decision-making.