A legal bookkeeper and a bookkeeper generally perform the same duties. The main difference is the accurate record keeping of the Attorney Trust account. Clients pay money into their attorneys Trust account and the legal bookkeeper needs to keep accurate records of all these transactions.
- Recording every financial transaction that occurs within your business
- Create and send invoices and statements
- Follow up on outstanding invoices
Bookkeeping requires you to be accurate, diligent, and display attention to detail.
A bookkeeper and an accountant are not the same, accounting is more subjective and involves:
- Capturing expenses that weren’t originally recorded and adjusting entries accordingly
- Prepare financial statements and other reporting tools
- Plan for tax liabilities and ensure that payments are made in time to avoid penalties
- Completing tax returns
Why employ a legal bookkeeper?
Generally speaking a legal bookkeeper’s most important duty is to maintain the integrity of the attorney’s firm. It is important to ensure that systems are in place for your attorney firm to function well and guarantee the
Tip: Keep separate accounts for your business and your personal finances.
Firstly, the Legal Practioners Act 28 of 2104 has rules which need to be adhered to. Sections in the Act apply to all attorneys and it is important that your practice is compliant.
All attorneys must have a Trust Account into which your clients’ money is invested. Money may only be paid out of the Trust account after fees have been written or there is an invoice which has to be paid on behalf of your client.
The goal of bookkeeping is to have an accurate picture of your current financial standing.
Duties of a legal bookkeeper
Some of the most important duties are to capture invoices, payments and receipts. Issue monthly statements. Including all other accounting functions to ensure the smooth running of the attorney firm. Keep records of the transactions of the business and the clients accounts. Reconcile the Bank transactions monthly including allocating the money received and paid out of the business account. Keep accurate records to ensure your annual audit runs smoothly.
Keep accurate records of the money received and paid out on behalf of any person, company and entity. In fact this money should be paid into the Trust account. Furthermore strict rules and regulations govern the movement of these funds.
- Monthly Bank reconciliation including allocation of the money received and paid out of the business account.
- Accurate records must be kept of money received and paid out on behalf of any person. In fact this money should be paid into the Trust account. Furthermore strict rules and regulations govern the movement of these funds.
- Record of money invested in Trust accounts and interest bearing accounts.
A legal bookkeeper should be an experienced and accomplished person with a strong bookkeeping and computer background. This also requires skills and experience in bookkeeping, accounting and understand law firm invoicing.
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