What is chart of accounts (COA) software?
Chart of accounts software helps law firms organise and manage their financial accounts by categorising transactions, expenses, and income into specific accounts. It ensures accurate tracking and reporting for all financial activities, both operational and trust-related.
How will a chart of accounts benefit my law firm?
A chart of accounts provides a structured framework to track all your financial transactions in a way that simplifies reporting, budgeting, and compliance. It ensures clarity and organisation in your financial records, especially for law firms with multiple practice areas or offices.
What can be included in a law firm's chart of accounts?
Lawsyst can help law firms set up a basic chart of accounts, including all five top-level accounts essential for your general ledger: assets, liabilities, shareholder equity, revenue, and expenses. We can also tailor our software to your specific requirements.
How can I customise my chart of accounts to my law firm’s specific needs?
You can customise your COA by adding, editing, or removing accounts based on your firm’s unique financial needs. This ensures your chart of accounts aligns with your firm’s practices, billing methods, and regulatory requirements.
Is your chart of accounts software customisable to different law practice areas?
Yes, you can set up separate accounts for different practice areas, e.g., civil litigation, family law or corporate law, and allocate income and expenses to those areas for better financial tracking and reporting.
How does your software help with trust account management?
Lawsyst’s software includes specific accounts for managing client trust funds, ensuring compliance with legal requirements for trust accounting, and providing clear reports for audit purposes.
Can I generate reports based on my chart of accounts?
Yes, our software allows you to generate various reports such as profit & loss statements, balance sheets, and income statements based on the COA, giving you insight into your firm’s financial position.
How does your software handle multi-office law firms?
Our COA software supports multi-office or multi-entity configurations, allowing you to create separate accounts for each office or practice area while maintaining consolidated reporting for the entire firm.
Can I track and categorise disbursements through a chart of accounts?
Yes, our software enables you to track disbursements, such as court filing fees or expert witness fees, and categorise them under specific accounts to ensure they’re correctly recorded and billed to clients.
Can I create sub-accounts for more detailed tracking?
Yes, you can create sub-accounts within your COA for even more granular tracking of income and expenses, such as separating operating costs by department or matter type.
How does your COA software help with compliance and regulatory requirements?
Our software is designed to help law firms stay compliant with regulatory standards, particularly for trust accounting. It ensures that all transactions are properly recorded and provides audit-ready reports for compliance checks.
Is it possible to manage multiple billing structures using COA software?
Yes, our software supports multiple billing structures, such as hourly billing, flat fees, contingency fees, or retainer-based billing, and you can categorise income from each structure accordingly.
How does your chart of accounts software help with budgeting?
By organising your accounts into categories, our software helps you create and monitor budgets by expense type or revenue stream, making it easier to compare actual spending and income against your firm’s financial goals.
Can I add new accounts as my firm grows?
Yes, you can easily add new accounts to the chart of accounts at any time, ensuring that your financial structure grows with your firm’s needs.
How does your software improve financial reporting and decision-making?
With a well-organised chart of accounts, you can generate accurate and detailed financial reports, allowing for better decision-making. These reports help you track the financial health of your firm, analyse performance by practice area, and improve cash flow management.