Bookkeeping for growing, multi-attorney law firms
As a firm adds attorneys, the books need to answer new questions: who originated which work, how each practice area performs and how partners are paid. Controls around trust also matter more when more people can request disbursements.
Approvals and separation of duties
With several attorneys, firms often separate who requests a trust disbursement, who approves it and who records it. This reduces errors and makes reconciliations easier to review.
Reporting partners actually use
Profit by practice area, realization and collection rates, and receivables by attorney are common requests. The chart of accounts and billing system need to be set up to produce these without manual spreadsheets.
Owner compensation and distributions
Partner draws, guaranteed payments and distributions need consistent treatment so partner capital accounts stay accurate. This usually involves coordination with the firm's CPA at year-end.
What to check
- Who can request and who approves trust disbursements
- Which partner reports are produced each month
- Whether billing and accounting systems are connected
- How partner draws are recorded
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Frequently asked questions
When does a growing firm need a controller-level review?
Firms often add one when partner reporting or compensation becomes contentious, or when the monthly close regularly slips. It varies by firm.
Is this law firm bookkeeping guide advice?
No. Sam's List writes these guides for education. They describe common questions and processes, not advice for your specific situation.
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