This issue of Law Practice magazine is your annual reminder to pay renewed attention to the financial side of your practice. But rest easy; we are not attempting to turn you into a CPA!
There are three “flavors” of financial software you must use. The first is financial (aka accounting) software. Think profit and loss statements and balance sheets and budgets and tax returns. Next is time and billing (aka management) software. Think billable hours and work in process and realization. Lastly is trust (aka IOLTA) accounting software. Think client ledgers and advance fee deposits and paying costs and earned fees from client balances. Some practices may not need a trust account. For further information, visit the LP Legal Technology Resource Center. For a broad treatment of technology in a law office, purchase the 2020 Solo and Small Firm Legal Technology Guide. Also, go to www.capterra.com to learn about more software options.
Use the checklist on the next page for a quick financial audit to review your financial and business practices.