A general ledger is a grouping of all of the accounts that a law firm uses to categorize and track the firm’s business transactions. The information found in the general ledger accounts is used to generate the firm’s balance sheet and profit and loss statement. In the past, the general ledger was a book in which each account had its own page.
The listing of available general ledger accounts is called the “chart of accounts”. Different industries have different types of business transactions so each industry should have a different chart of accounts. The following is a sample chart of accounts for a law firm:
Sign up now to get more tips and news from CosmoLex
- Data Migration Checklist for Law Offices
- What is the difference between Legal Practice Management & Legal Case Management?
- It's Not Too Late to Migrate: Transitioning to New Legal Software in 2022 (25:47)
- 2021 Year-end Accounting Checklist for Law Firms
- A Simplified Guide to Electronic Payments for Lawyers