It’s time to think about our accounting systems and planning for 2016, as well as look at the year’s profitability, collections and unbilled accounts.

Sometimes you are so busy; you don’t manage the accounting process properly.  It’s time to make sure standard procedures are being followed and that you are prepared for year end.

Month End

  • Make sure each month that all bank accounts are reconciled. Don’t forget to review any “outstanding” deposits and checks on the bank reconciliation reports. If a check or deposit has not cleared in two months, then you need to find out why.
  • Reconcile the balances that appear on the Client Ledger, Billing (Fees) Journal and General Ledger to each other.
  • Print and review general ledger reports, income statement balance sheet, and research any questionable numbers on the general ledger.  Make corrections to the general ledger as needed.
  • Enter g/l adjustments as needed for payroll or CPA requested entries.
  • Review Accounts Receivable reports – it’s time to get those funds in before year end so make efforts on collection of what’s due.
  • Review Work in Progress reports and make sure clients are getting invoiced properly.
  • Close the month – each month of the year should be closed except the last month of the fiscal year.

Year End

  • Review your 1099 listing and be ready to produce 1099 forms for your vendors.
  • Close all months except the last month of the fiscal year.
  • Enter g/l adjustments provided by your accountant dated the last day of the fiscal year.
  • Analyze the year’s budget figures and make changes to adjust the budget for next year – Lawyer Budgeting and G/L budgeting.
  • Clean up the A/R and Unbilled Costs by writing off uncollectible fees and costs – hard costs written off are tax deductible by creating an expense on the books.
  • Close the year.
  • Backup PCLaw as of year-end and then close the year.
  • Update your Chart of Accounts if you need to add or change G/L accounts for next year.

Year End Review

You may want to schedule a year-end review of your accounting system to make sure proper procedures and posting have been done. Be sure you have checks and balances in place to avoid any opportunities for “cooking the books”.

If you have any questions about year end planning, please call C&S LegalTech at 205-289-1500.

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