Law Business Essentials

There is a prevalent notion among lawyers that the bookkeeper's role is akin to that of a data entry person with a basic understanding of bookkeeping. However, the person that you employ will not only be responsible for the day-to-day posting of transactions for your trust and general accounts, they are usually delegated the important role of conducting month-end procedures that include:

• preparation of monthly trust and general bank reconciliations;
• billing and accounts receivable work;
• payment of client disbursements and office accounts;
• preparation of periodic financial statements; and
• monitoring cash flow.

Some lawyers have only a vague notion of what an effective bookkeeper can do for their business and may hire a friend or relative for this job without careful deliberation or a review of their qualifications. All too often, the Law Society becomes involved in a practice where the bookkeeper has not performed their duties due to improper supervision by the lawyer. As many lawyers have experienced, changing bookkeepers can be expensive, time-consuming, and may even lead to discipline if the books and records are not kept in accordance with the Rules of the Law Society of Alberta.