I’ve landed a sweet job at a very small law firm (yay steady work!). I’ve done other types of bookkeeping jobs before, but it’s all been in science-type stuff: large chunks of money come in, and various amounts can only be spent on specific things (consumables, payroll, equipment, etc).
I’m finding out that accounting/bookkeeping for law firms is very different, but I don’t know what I don’t know. I’ve tried doing searches for books on this, but my google-fu is weak. I keep getting books and websites on accounting law, not law accounting. If I really screw up, the lawyer could get disbarred. Please help me learn about bookkeeping for a law firm! Any books or websites would be greatly appreciated.
In addition, you’ll want to get up to speed on the accounting procedures needed to implement ethical rules concerning segregating trust accounts on a per client basis, IOLTA, retainers and unearned fees, and the like.
This is why I would be no good in solo practice. I’d foul up the accounting immediately and wind up in trouble with the Bar. All I remember is, “never pay a juror out of your trust account.”
Is it possible to find a mentor? Someone with another firm willing to give you a little advice and answer some phone calls in exchange for taking him/her out to lunch once a month. Perhaps one of the partners in the firm you are in could arrange an introduction.
I would have thought that your firm would want to make sure you’re up to snuff on the requirements. If you don’t comply with the rules for trust accounting for lawyers, it’s the lawyers who could be subject to professional discipline.
Can you ask the managing partner if there is a course specifically on law firm bookkeeping that they could send you to?
When I said “small law firm”, I meant small. The original lawyer just got his first partner last year and last month they hired a 3rd lawyer. The girl that’s been doing the books (and who’s training me) knows how to enter things, but doesn’t seem to know the *why *behind anything. The original lawyer is making this big push right now to turn the office into a bigger firm and get things set up correctly from the start. He is available to answer my questions about law bookkeeping, but I wanted to have more specific questions to ask other than “So, how does all this work?”
The links I’ve gotten so far have been massively helpful. I’ve now got a starting point to start working from. Maybe in 6 months I could have him send me away to training, but right now, I’m just waiting to get my own computer in the office.
