Bookkeeping for Law Firm
From LSO Website :
There are several reasons to keep books and records:
The Law Society sets out in By-Law 9, the minimum requirements for books and records to be maintained in a law practice. The minimum requirements are aimed at protection of the public and therefore focus on trust records.
General trust law requires trustees, including lawyers holding client funds, to be able to account to beneficiaries at any time. In order to do this, you have to have recorded the money you received from each client, what money you disbursed for each client, and what the unexpended balance is for each client. You also have to keep your bank statements as an independent record (source document) of your trust transactions.
But the most important reason to keep books and records is because it is in your best interest. By maintaining complete, accurate and up to date records, you will have current financial information available so you can make sound financial decisions about your practice. Proper accounting records also help you to meet your statutory obligations in filing reports on time to the Canada Revenue Agency for income tax and HST, to the Lawyers Professional Indemnity Company for transaction levies, and to the Law Society for your Annual Report."
Your accounting department will keep your books in full compliance with LSO rules and regulations.