Ready to say goodbye to 2020? If so, you’re in good company. This year has been a challenging one, and many of us are more than ready to throw out the old and ring in the new. But that doesn’t mean that law firms should neglect key end-of-year tasks. While pandemic fatigue might make it tempting to skip out on … Read More
7 Essential Trust Accounting Reports
Generate these seven trust accounting reports to stay compliant, be ready for audits, and always know where you stand. Trust accounting is a critical area for law firm practice management. This is both a significant responsibility and an ethical duty, and maintaining compliance should be one of the top priorities of a law firm. It’s critical firms have an organized … Read More
The Top 5 Reasons Lawyers Are Switching from QuickBooks
While they might be a good solution for many small businesses, generic accounting platforms like Quickbooks aren’t designed to meet the specific needs of lawyers. QuickBooks is the leading accounting software used by small businesses—and there’s a reason for that. Tools like QuickBooks, Quicken or Xero are purposely meant to be used for general businesses, which means that instead of … Read More
Simplify Your Law Firm Accounting with CosmoLex
When it comes to legal-specific accounting complexities, CosmoLex has you covered. Law firm accounting is complex, and many of the requirements of legal accounting are specific to the practice of law. Managing fee allocations, trust reports, reconciliations, and retainers, for example, requires accounting methods designed specifically for legal purposes—and they are best managed by software designed specifically for law firms. … Read More
Trust Accounting: Using Tech to Increase Efficiency and Compliance
Managing your trust accounting manually isn’t only enough to make you dread doing it – it’s downright risky. Doing trust accounting the right way requires accuracy, attention to detail, and avoiding mistakes and mishandling, all of which can take a big chunk out time out of the workday. Through the use of technology, lawyers have the opportunity to make their … Read More
What Every Lawyer Should Know About Trust Accounting
A trust accounting issue is on nearly every lawyer’s list of biggest fears, especially since all it takes is one mistake to get you disbarred. With everything you need to know about the actual practice of law, maintaining compliant trust accounts on top of it can seem daunting. Nailing down the basics and putting measures in place to avoid any … Read More
Feature Spotlight: Bulk Trust to General Transfer
Often when following a routine billing cycle (ex: monthly) and holding client retainers in trust, you need to debit multiple client trust ledgers to pay the firm. Did you know that from the Activities area in CosmoLex, you can actually apply these funds in bulk? In one step, you can debit multiple matter ledgers and apply it to those matters’ … Read More
Question of the Week: Why do I need to run three-way reconciliations and how do I do it?
Three-way reconciliations are one of the most critical components of trust accounting. This particular report verifies the accuracy of three balances in order to make sure there is no apparent fraudulent behavior or bookkeeping mistakes. While these reports are necessary for compliant trust accounting, they’re also extremely helpful for any firm who wants to ensure accuracy and mitigate the risk … Read More
Question of the Week: How Can My Firm Effectively Use Retainers?
Retainers serve an essential purpose in the complex legal field by ensuring payment and a steady cash flow. To be effective, retainers need to be monitored to ensure they have the funds necessary to cover billing. Done properly, retainers can improve cash flow and the collections process, enhance the overall client experience, and streamline accounting. Key to successful retainer management … Read More
CosmoLex Spotlight: Trust Accounting Safeguards
Trust accounting is a critical function for law firms, as funds that are not yet earned or disbursed must be handled in compliance with state and federal requirements. Because of this, managing the trust account can seem intimidating. It’s essential that the firm is well aware of the requirements—regardless of who is doing the work—and doing everything possible to abide … Read More