Law Firm Accounting
A law firm has a number of unique accounting requirements. It is strongly focused on the proper identification of chargeable hours, correctly structured billings, distributable income calculations, partner accounts, practice group reporting, realization rates, and much more. Law Firm Accounting provides the accountant with the information needed to set up a charge code system, account for ongoing business transactions, prepare financial statements, and issue a broad array of reports that are specifically targeted at the needs of a law firm. In short, it addresses every aspect of the accounting for a law firm.
Format
PDF Course
Level
Overview
Duration
3 Hours
Course Information
Author: Steven Bragg
Course Number: AC1121
Table of Contents
Chapter 1. The Essentials of Law Firm Accounting
Chapter 2. Law Firm Financial Statements
Chapter 3. Law Firm Management Reporting
Chapter 4. Law Firm Controls
Learning Objectives
- Recognize how the modified cash basis varies from accrual basis accounting, and how this impacts the recognition of various transactions.
- Specify the circumstances that can lead to the under-realization or over-realization of hourly rates.
- Specify the types of billing arrangements in which a law firm typically engages.
- Identify the accounting techniques that can be used to reduce the amount of reported income.
- State the types of expenses that are categorized as compensation or operating expenses.
- Describe the derivation of distributable income.
- Specify how the financial statements change when shifting from the modified cash basis to the accrual basis of accounting.
- Identify the contents of the line items commonly found in the statement of cash flows.
- Recognize the uses to which the various management reports and metrics can be put.
- Identify the controls that can minimize instances of fraud within a law firm.
- Specify the controls applicable to the handling of cash within a law firm.
Level: Overview
Instructional Method: QAS Self-Study
NASBA Category: Accounting
Prerequisites: None
Advance Preparation: None
Latest Review Date: June 2024
Program Registration Requirements: Click on the Enroll button to pay for and access the course. You will then be able to download the course as a PDF file, then take an on-line examination, and then download a certificate of completion if you pass the examination.
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