Great Lawyer! Expensive Law-Firm Bookkeeper?
Are you the typical lawyer, small business owner or CPA trying to do everything on your own? But why? Are you really saving money? Let me tell you a secret…your time is best spent focusing on what you do best! If you are a lawyer, you are good at practicing law…no offense but you do not have the patience or aptitude required to be a good law-firm bookkeeper. Plus, you make too much money being a lawyer…bookkeeping won’t excite you. Outsource bookkeeping and non-core tasks to a trusted third party provider.
Can’t I be a good Bookkeeper as well?
Sure you can but do you want to? Let’s take James as an example. James is a great lawyer. He charges his clients about $300 per hour. James used to be the typical do-it-all small business owner. He “tried” to do his own books. He would spend about 5 hours a week –usually Sunday nights — doing bookkeeping. Even then, his books were a mess. He was always at least a few months behind and was not invoicing his clients on time. Needless to say…James was not a very good bookkeeper. Plus, he was a very expensive $$$ one!
James has since outsourced his bookkeeping to Maxim Liberty. His virtual bookkeeper – Sheela – updates the books for James “every day.” Yet, that costs James only $300 per month. More importantly, James is on top of his books and his books are in good shape.
How about the law firm business?
James is now able to bill an extra 20 hours of his time every month. That’s an additional $6,000 in revenue per month = $72,000 per year. And, did I say James is on top of his books? He is able to send invoices and transfer client funds on time. James has used the additional revenue and efficiencies to increase his marketing budget and, as a result, sales. He recently hired another lawyer to work for him. More importantly, James is very happy he does not have to deal with bookkeeping which was something he absolutely hated.
What about that time difference?
Not a problem at all. James spends almost no time on bookkeeping. In the morning, James gets in his office and checks his email for a status update from Sheela. Sheela’s email is waiting for him. It has an attachment with a list of bills and invoices. James pings Sheela over instant messenger. “Sheela, please pay the bills and email/fax invoices to clients!” Sheela pays the bills using online bill pay from Jame’s bank account. She then emails and faxes invoices to clients, and transfers earned funds from trust account to operating account.
Do I have to deal with an Indian outsourcing company?
Sheela is based in India. However, James does not have to worry about where she is from. James only pays Maxim Liberty, Inc. – the company she works for. Maxim Liberty is a US-based company that has been providing QuickBooks bookkeeping services for numerous clients in USA and Canada since 2005. As Mr. Krishnakumar, CEO of Maxim Liberty, Inc. remarked, “We are our client’s best kept secret. Every firm has tasks that can be handled via virtual bookkeepers. Our operations are handled out of India at a fraction of the cost. The quality of bookkeeping is much better because we are 100% focused on QuickBooks bookkeeping. Plus, we can updates the books every day!”
Outsource bookkeeping & other non-core tasks. Improve your business focus, reduce costs and grow your business. Pay as low as $5 per hour for online bookkeeping services vs. the typical $40,000 for bookkeeper and save a ton of money on full-time bookkeeping costs. Use the savings to (a) beat your competition with lower prices, (b) invest in advertising to outgrow your competition, and (c) improve your business focus. CPA firms can explore our dedicated bookkeeping outsourcing for accounting firms. For consistent financial oversight, our monthly bookkeeping services keep everything organized year-round. Learn how our affordable bookkeeping services deliver quality at competitive rates.
What if I hire someone local for bookkeeping?
Did you hire the right bookkeeper? How long does it take to train your bookkeeper? How much do you have to pay him/her? Do you have to pay your bookkeeper even when there is little work? What if your he/she leaves? Can you deal with all these headaches? I need hot coffee at my desk. That’s still a challenge! Didn’t we say our virtual bookkeeper is 100% focused on bookkeeping? That’s why, you can get your bookkeeping done better AND at a much lower cost! Just let Sheela handle just the bookkeeping for you please!
Frequently Asked Questions
Why do law firms need specialized bookkeepers?
Law firms must comply with strict trust accounting rules (IOLTA accounts), track billable hours for client billing, manage retainer deposits, and maintain separate records for client funds versus operating funds. General bookkeepers often lack the expertise to handle these requirements correctly.
What is IOLTA trust accounting?
IOLTA (Interest on Lawyers Trust Accounts) accounts hold client funds that are separate from the firm operating funds. Every deposit and withdrawal must be meticulously documented, and commingling client and firm funds is a serious ethical violation that can result in disbarment.
What accounting software works best for law firms?
Practice management platforms like Clio, PracticePanther, and MyCase integrate time tracking with billing and accounting. Many firms also use QuickBooks Online for general accounting alongside their practice management software.
How much does law firm bookkeeping cost?
Law firm bookkeeping typically costs $400 to $1,000 per month depending on firm size, transaction volume, and trust account complexity. The cost is justified by the compliance requirements — errors in trust accounting can result in bar disciplinary action.
Can outsourced bookkeepers handle law firm trust accounts?
Yes, but only bookkeepers with specific experience in legal trust accounting. Our team understands IOLTA compliance, three-way trust reconciliation, and the ethical requirements governing client fund management in legal practices.