Law firm billing and accounting requirements are inherently different from other service businesses. Even among legal practices, billing requirements can vary greatly from one area of practice to another.
Because time spent on billing and accounting is administrative and not billable, a law firm’s profitability depends on capturing all billable time and expenses, generating invoices in a timely manner and managing collection efforts proactively. Another highly important aspect that sets law firm billing apart from that of other businesses is that law firm billing and trust bookkeeping come under the purview of state ethics guidelines.
Law firms today cannot function without a legal billing software that fulfills the firm’s practice-specific billing needs and helps them avoid common billing pitfalls. The top ten most prevalent mistakes law firms make, when it comes to billing and accounting are:
Pitfall #10 Not Using Matter-Based Recordkeeping
Many service businesses perform multiple types of jobs for a customer and generate one invoice that covers everything. The same billing process does not work for law firms.
Matter based recordkeeping is unique to law firms. All transaction details must be kept at a matter level rather than client level. Law firms are usually required to keep each task (called “matter”) completely separate from other matters for the same client or other clients. For law firms, matter-based recordkeeping is critical because it allows them to produce proper records with ease for client billing inquires, billing disputes or state audits.
Pitfall #9 Not Accounting for Varied Types of Legal Matters
Accounting for retainers, time and expenses, etc. will vary depending upon the nature of the matter in question. Most law firms handle a variety of cases and use an assortment of client billing arrangements , such as hourly, retainer based hourly, fixed and contingency. A firm’s billing system must be able to handle all types of billing arrangements and the intricacies of each case.
Pitfall #8 Missing Flexibility in Setting Billing Rates
Professionals (or Timekeepers) at law firms are likely to have standard hourly rates for different tasks. An attorney billing software must be able to set Timekeeper rates accordingly, support discounted rates or a previous year’s rates for old matters, without much manual intervention.
Pitfall #7 Failure to Track and Allocate Disbursements
While law firms focus on capturing all billable hours, they often neglect to properly track and allocate expenses for billable matters. Expense tracking is just as important as time tracking. If you do not allocate expenses to a matter as expenses are incurred, you might never collect them. Matter expenses you forget to allocate are lost profits.
Expenses are typically paid in variety of ways (checks, credit cards and cash), adding another layer of difficulty. A trust account disbursement, however, is not an issue because the expense will come out of client funds.
Pitfall #6 Not Preparing Customized Professional Quality Bills & Reminders
The billing process is a direct reflection of your firm and is a vital part of your client communication. While law firms are conscious of providing top quality legal services, their high standards often fall short when it comes to client communications such as invoice and payment reminders. Not only is it important to generate invoices on a fixed billing cycle, but it also equally important to prepare professional quality invoices. Cluttered and hard to understand invoices are a recipe for late payments and client questions and are aspects of legal billing that become even more important when payments are in arrears.
Pitfall # 5 Not Utilizing Built-in Software Collection Support
Many law firms let unpaid bills pile up and end up with a collection problem. Take a proactive approach to debt collection rather than grappling with the issue after the fact. An efficient law office billing software will provide built-in collection support. Don’t wait for a billing cycle, if a matter’s unbilled balance has reached a low threshold point. Remember, bill collection is an on-going and vital practice management process.
Pitfall # 4 Not Checking for Client Conflict of Interest
For most law firms, conflict checking is a must. Your firm’s roster of clients is already available in your billing system. Instead of duplicating work, make every attempt to use the same system as a conflict checker. While developing a bulletproof conflict of interest system is challenging, development in today’s computer software makes it easy to build an integrated database that quickly identifies conflicts of interest.
Pitfall #3 Not Handling Client Advances Properly
Pitfall # 3 involves a host of potential problem areas. A law firm’s cash flow and profitability depend upon client advances (or retainers). However, from an accounting/bookkeeping perspective, client advances (retainers) need special treatment and must be handled carefully. The varied nature of client advances, an initial deposit to a trust and/or operating account, and reducing balances, as fees are earned, can significantly complicate your back office operation, if your billing system is not capable of processing retainer transactions systematically.
And, apart from itemizing legal fees and expenses, a legal time & billing software must always display remaining retainer balances on your client invoices.
Pitfall # 2 Loosing Track of Trust Funds
Every law firm endeavors to keep trust books clean and accurate, but most either fail or spend significant time and resources trying to do so. Ninety percent of the trust fund tracking battle is won, if your system provides integrated billing and trust bookkeeping . The trust bookkeeping portion of the system must prevent common trust errors (e.g. ledger card overdraft), provide a bank reconciliation tool and three-way reconciliation reports.
Pitfall # 1 Choosing Complex Software and Failure to Protect Data Integrity and Security
The most common and the most dangerous of all legal billing pitfalls include trying to cope with complex software, failure to protect data integrity and implement secure measures. Technological tools are more hindrance than help, if the tools are too complex to use. Software that isn’t user friendly and requires external consultants or trainers consumes valuable time and eats profits.
Data integrity and security are a matter of taking precautions to protect data from unauthorized access and use. You can minimize threats and easily avoid Pitfall #1, if your billing system has built-in features for controlling access to data, has checks in place for error detection and a regular data back-up function.
Reap the Benefits of Legal Billing Software Development
Computers and software have changed how companies everywhere do business. Technology today allows law firms and other businesses to compete with their larger counterparts on many levels.
Choose software with care and reap the benefits of technological developments in legal billing systems. Before you purchase legal billing software, analyze program features to ensure that the software’s design can help you avoid the ten common legal billing pitfalls. The right software will not only enhance your firm’s in-house capabilities and productivity, but will also help you comply with state ethics guidelines and increase profitability.
Author: blogger
what’s In A Name – Just Your Business Survival!
What’s so important about how I sign my name?”
I get asked that question all of the time from my business consulting clients.
I tell them that a better question to ask me is this:
“Who cares about how I sign my name?”
The answer is a simple one.
NOBODY.
FINE PRINT: Except… your customers and clients, your creditors, your bank, your mortgage company, your landlord, the I.R.S… oh yes… and anyone else that wants to SUE YOU (and don’t forget ALL their lawyers!).
As in many areas of the law, the exception to the rule swallows up the rule!
What do I mean by this?
Well, let’s start with some basics. For instance, if you’ve already formed a corporation or limited liability company (LLC), you may think that you’re already protected from personal liability in the event of a lawsuit against your business.
In general, the rule is that a corporation or LLC, if formed correctly, and if all of the formalities required under the law of the State where the entity was formed are followed, does protect you from personal liability for business debts and lawsuits.
FINE PRINT: Except… when you choose to do business as an individual, and not as the corporation or LLC that you initially formed.
You see, whenever you sign documents like contracts, purchase orders, contractual agreements, leases, loans, mortgages, promissory notes, and most other legal documents involving your business, you need to make sure that you sign your name only in your business capacity.
You MUST avoid signing your name in your individual capacity.
And how do you do that? It’s pretty simple. You see, the format that you use to sign your name is the controlling factor.
In many cases, you as the business owner, sign your name without knowing how to properly sign your name to business documents. In fact, most business owners of corporations and LLC’s still sign legally binding agreements in their individual capacity…and not as the business.
SIGN AS AN AGENT OF YOUR BUSINESS
If you have formed a corporation or an LLC, you must remember to sign all contracts, agreements, invoices, etc… as an agent of the business.
For example… Many business owners haphazardly, or perhaps inadvertently, sign legal documents like the format shown in
EXAMPLE 1 below:
EXAMPLE 1
(signature)
————————
John Doe
“But what is the consequence of signing my name like in EXAMPLE 1 above to invoices, agreements, or documents?”
EXAMPLE 1 and the above signature format legally establishes that YOU have signed the contract, invoice, loan, or agreement as an individual.
And not as an agent on behalf of your business.
If you sign your name to agreements in the form depicted in EXAMPLE 1 above, YOU could very well be liable personally to meet all of the terms of the agreement.
And you likely don’t want to do this!
Why Simply out, because you’re therefore subjecting all of your business assets and personal assets as well to the risk of a lawsuit.
If you sign agreements as depicted in EXAMPLE 1 above, YOU will very likely be named personally, as well as your business, in any lawsuit filed against the business.
Remember then:
Signing your name like in EXAMPLE 1 above DOES NOT establish that you have signed the agreement as an agent on behalf of your business.
“Okay. So how should I sign my name to my invoices, contracts, leases, loans, or any other business agreements?
What simple step can I take to protect my business, and my personal assets as well?
SIGN DOCUMENTS ONLY AS AN AGENT OF YOUR BUSINESS
Make sure that you only sign legal documents, letters, memos, invoices, loans, leases, etc… as an agent of your business.
How must I sign my name to any legal document or agreement to show that I am signing only as an agent of my business?
Follow EXAMPLE 2 below:
EXAMPLE 2
ABC CORPORATION, INC.
(signature)
———————————–
BY: John Doe
President (Company Title)
If you sign your name on the dotted line following the exact format depicted in Example 2 above, you legally establish that you are only signing as an agent on behalf of the business…and not in your individual capacity.
But you MUST follow the Example 2 precisely.
CAVEAT: Another very important point on this topic.
AVOID SIGNING documents that state “PERSONAL GUARANTY” on them.
A Personal Guaranty is usually a separate legal document attached to the main agreement. You generally see a Personal Guaranty in a loan, mortgage, or lease. However, sometimes a Personal Guaranty can be established just by the way you sign the legal document, invoice, lease, or agreement.
How?
Simple. If the agreement merely has a signature line that has your individual name on it without any reference to your business name, you are signing the document as a Personal Guaranty. You are therefore personally liable for that agreement if you sign the agreement with such a signature line.
But, what do I do if I am being required to sign a Personal Guaranty, like for a business loan or commercial lease for example?
If a Personal Guaranty is required, you or your lawyer should negotiate a limited period of time (the shortest possible) that the Personal Guaranty will bind you as an individual.
Remember, if you formed a corporation or LLC in the first place, you did it to avoid personal liability and to protect your personal assets. Anyone who does business with your company should, and usually does, know this. So, be careful. Other possibilities can be negotiated too. Just do your best not to sign in your personal capacity by signing a Personal Guaranty.
It’s important to remember to only sign legal documents, invoices, and even letters as an agent of your business. (Follow the format found in EXAMPLE 2 above).
How else can I make sure that I am signing my name properly to all of my business documents?
Call your attorney to review all of your agreements, invoices, leases, and legal documents BEFORE you sign them. Your attorney will offer sound advice that protects YOU, your loved ones, and your business.
Now, let’s review.
What’s in a name?
Well… besides your business…
…it could be all of YOUR personal and family assets!
The best advicve especially in the midst of tough economic times or a Recession, is to have any document you sign first reviewed by your lawyer or business consultant.
Copyright (c) 2008. Miguel Mendez, Jr. All rights reserved.
How To Attract Money Using Law Of Attraction
If you want to effectively learn how to attract money using the Law of Attraction, you’ve got to go deeper than just doing affirmations and “thinking positive.” This articles tells you a rare secret for using the Law of Attraction to attract money which gets you to the heart of attraction without a lot of work.
What you must do when using the Law of Attraction is to learn how to manifest money through “unseen” or “unconscious” means, which are found at deeper levels than your conscious mind.
How deep do I mean? I mean going straight to your subconscious mind and addressing all the negative beliefs you have around money. Now, many people such as yourself hear this and say, “Gee, I don’t think I have any negative beliefs around money, so this doesn’t apply to me,” or say, “But I’m doing money affirmations to change my subconscious mind, so this doesn’t apply to me, either,” right? Wrong! If you’ve been living in today’s modern society, you most likely have absorbed many negative beliefs about money that are working straight against all those money affirmations you’re doing when using the Law of Attraction for money goals.
These “unseen and unheard” money beliefs are lurking in the background of your mind and discrediting all that “positive thinking” you’re trying to “shove down its throat.” Your subconscious mind doesn’t really like to change that much, as well as it has a “gatekeeper” (your conscious mind) to keep out all those radical thoughts that go against the grain of your subconscious. And it is your subconscious that is consistently putting out an energetic signal about money (either good or bad) to which the Law of Attraction can’t help but respond.
So, what you want to do is teach your subconscious mind how to attract money and you may already be trying to do this by reciting money affirmations. Now, I will admit that money affirmations do eventually work, but they take huge amounts of continual effort to get them past your conscious mind’s resistance.
A better way to teach your subconscious mind how to attract money is to use something called silent subliminals that go straight past your conscious mind to get directly absorbed by your subconscious mind because the “gatekeeper” (your conscious mind) can’t hear the affirmations, so they don’t get discredited. This takes off a huge layer of resistance to your affirmations.
But, even if you use the silent subliminals, you still must use “targeted subliminals” that address many of today’s negative money beliefs in a safe and gentle fashion. Why? Because, again, no matter how many money affirmations you do for a “large sum of money,” if one of your “negative social beliefs around money” is that people with money are bad and greedy, then you’re not going to get that large sum of money because you don’t want to be a “bad, greedy” person. So, your ship is sunk before it even gets afloat, and the sad part about this is that most people don’t even know their ship has a hole in it! Why? Because most people are not aware of the negative social beliefs they’ve picked up from society. That’s why it’s important to find and use affirmations that address these beliefs and gently “coax” your subconscious into feeling good around having money.
Once you know how to attract money by addressing your specific subconscious barriers to having money, you’re set up to use the Law of Attraction for money successfully because then your mind goes on “auto pilot” and simply works to attract money. It knows how to manifest money even when you’re sleeping because it’s sending out an energetic signal that “money is good” and that “you are deserving” and the Law of Attraction has no choice but to respond because the Law of Attraction is all about energy. This is the easiest and most effective way to learn how to attract money using the Law of Attraction.
How To Change An Existing Employment Contract
If you want to change an employee’s terms and conditions of employment, you will need to get their agreement first. Otherwise, the employee may be entitled to sue for breach of contract, or resign and claim constructive dismissal. You must tell the employee in writing about any changes no later than one month after you have made the change. Do changes have to be in writing? Agreed changes don’t necessarily have to be in writing. However if they alter the terms in your ‘written statement of employment particulars’,
your employer must give you another written statement showing what has changed within a month of the change. Employee Enforcement of the Right Employees have certain rights. These rights are enforceable by law: The right of fair treatment regardless of age, race, religion, gender, disabilities, or sexual preferences The right to equal treatment, also with regard to wages The right no be dismissed without proper cause and the correct procedures The right not to get fired for giving birth to a child Employees also have the right to a proper written notice time for termination of their work agreement in relation to the period employed Employees have the right for compensation when they are retrenched Safe workplace Terminating the Employment ContractBoth employer and employee can terminate the employment contract according to the terms contained within it. Either side can make a complaint against the other.
Breach-of-Contract Claims Both employers and employees can be in breach of a contract of employment. A breach of contract happens when either employee or your employer breaks one of the terms. If an employee continues to work under these changes without objecting, they may be regarded as having accepted the changes. Not all the terms of a contract are written down. A breach may be of a verbally agreed term, a written term, or an ‘implied’ term of a contract. Employer would normally use a county court for a breach of contract claim. The only way an employer would be able to make an application to an Employment Tribunal is in response to a breach of contract claim that an employee has made. The most common breaches of contract by an employee are when they quit without giving (or working) proper notice, or when they go to work for a competitor when their contract doesn’t allow it. Our Employment Law DocumentsAvailable documents include employment contract templates, as well as a director contract template and a range of employment policies. Our documents are designed for use in England and Wales. Our Contract of Employment Template is easy to customize to your business’ requirements.
They provide comprehensive legal protection, whilst avoiding excessive legal jargon. They have been designed with ease-of-use in mind. To this end, they include guidance notes. They are excellent value and available for immediate download. All the templates have been drafted by a team of Solicitors and Barristers who are expert in the field of employment.
If you want to change an employee’s terms and conditions of employment, you will need to get their agreement first. Otherwise, the employee may be entitled to sue for breach of contract, or resign and claim constructive dismissal. You must tell the employee in writing about any changes no later than one month after you have made the change. Do changes have to be in writing? Agreed changes don’t necessarily have to be in writing. However if they alter the terms in your ‘written statement of employment particulars’,
your employer must give you another written statement showing what has changed within a month of the change. Employee Enforcement of the Right Employees have certain rights. These rights are enforceable by law: The right of fair treatment regardless of age, race, religion, gender, disabilities, or sexual preferences The right to equal treatment, also with regard to wages The right no be dismissed without proper cause and the correct procedures The right not to get fired for giving birth to a child Employees also have the right to a proper written notice time for termination of their work agreement in relation to the period employed Employees have the right for compensation when they are retrenched Safe workplace Terminating the Employment ContractBoth employer and employee can terminate the employment contract according to the terms contained within it. Either side can make a complaint against the other.
Breach-of-Contract Claims Both employers and employees can be in breach of a contract of employment. A breach of contract happens when either employee or your employer breaks one of the terms. If an employee continues to work under these changes without objecting, they may be regarded as having accepted the changes. Not all the terms of a contract are written down. A breach may be of a verbally agreed term, a written term, or an ‘implied’ term of a contract. Employer would normally use a county court for a breach of contract claim. The only way an employer would be able to make an application to an Employment Tribunal is in response to a breach of contract claim that an employee has made. The most common breaches of contract by an employee are when they quit without giving (or working) proper notice, or when they go to work for a competitor when their contract doesn’t allow it. Our Employment Law DocumentsAvailable documents include employment contract templates, as well as a director contract template and a range of employment policies. Our documents are designed for use in England and Wales. Our Contract of Employment Template is easy to customize to your business’ requirements.
They provide comprehensive legal protection, whilst avoiding excessive legal jargon. They have been designed with ease-of-use in mind. To this end, they include guidance notes. They are excellent value and available for immediate download. All the templates have been drafted by a team of Solicitors and Barristers who are expert in the field of employment.
Significance Of Hiring Employmentlawyers
Everybody is struggling to establish their career as the economy is going through some crises. For you to have a good job, you must double the effort that you usually do since employment competition is on the higher level now. Nevertheless, the economy isn’t always stable, and when recession sets in, businesses will be pushed to lay off a few employees. In lots of cities like New York, business abuses are undeniably present. As a matter of fact, a few workplaces are discriminating the jobless.
In the present times, individuals are not hired due to some reasons. Cronyism is just one of these reasons. Only those people who have connections are the ones who can simply get the job. As it is, it is harder for most New Yorkers to search for a job than to find a property. This is because the present unemployment rating is on the rise. It has also become harder for people to secure their current jobs.
Navigating the modern workplace is extremely tough that is why you need the help of NYC employment lawyer. When it comes to employment and civil litigation matters, they are the ones who can help employees from large and small companies. Usually, their services aren’t just limited to the local community because they give it internationally also. Employees’ race, age, sex, disability and religion discrimination is not new to them. Businesses will offer people a chance instead of stereotyping others through their assistance.
Whether your case involves harassment, gender equality issues, sexual harassment, breach of contract, executive compensation, or problems within partnerships, the employment lawyers can surely assist you. Counseling and advice for financial institutions and also other companies in different states, assistance concerning new business initiatives, acquisitions, joint ventures and the likes, drafting and revising employee handbooks, as well as other employment-related documents are also offered by the employmentattorney. What they do is to maintain a sense of fairness and equality among all employees. They prevent businesses from abusing their authority to merely undermine the rights of their employees. Through them, every staff would be treated with utmost professionalism. Keep in mind that laws are implemented so that both parties can benefit.
Other than the above mentioned services, employment lawyers are also helping out companies and businesses in keeping a strong connection to their employees. Several companies give their employees “value exchange. It turns the workplace into an enjoyable and engaging environment for workers to do better in their work. This is to turn the workplace into a different environment. Apart from providing employees a sense of freedom, this will also help them to become productive as they are very pleased with what they’re doing.
When it comes to legal issues regarding your business and job, it is best to have the help of the employmentattorney. They know how discrimination revolves around a certain workplace for both social and professional classes. Additionally, they can be of service to financially incapacitated small businesses that are bombarded with legal issues. With the aid of their expertise, skills and experience in civil legal actions, you can be sure that you’re in the safe zone. To discuss things up regarding your legal issues, you can personally visit their office.