Law Firm Accounting

Master the specialized accounting requirements of a law firm by applying industry-specific systems and reporting techniques. This course explains how to track chargeable hours, structure billings, calculate distributable income, and manage partner capital accounts. You will design a charge code system, account for daily transactions, prepare financial statements, and generate targeted reports for practice groups and firm leadership. The result is a comprehensive framework tailored to law firm operations.
Format

PDF Course

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Duration

3 Hours

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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.
Program Refund Policy: For more information regarding administrative policies concerning complaints, refunds, and other matters, see our policies page.

AccountingTools, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have the final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.
The NASBA sponsor identification number for Accountingtools, Inc. is 115881.

AccountingTools is an IRS Approved Continuing Education Provider. We are compliant with the requirements for continuing education providers (as described in sections 10.6 and 10.9 of the Department of Treasury’s Circular No. 230 and in other IRS guidance, forms, and instructions). Our IRS Approved Continuing Education Provider number is 72821.