3.7
Hiring a Bookkeeper

Define Your Expectations

Before hiring a bookkeeper, it is important to define your expectations of their responsibilities at your firm. You should consider the following functions that are normally carried out by a bookkeeper within a law firm:

    • day-to-day recording of all trust and general account transactions undertaken by your practice;
    • reconciling and balancing monthly trust and general bank accounts;
    • preparing and posting of the statements of account (fee billings);
    • maintaining client trust ledgers, accounts receivable sub-ledgers and accounts payable accounts;
    • preparing payroll;
    • preparing necessary government remittances such as GST and payroll deduction remittances;
    • preparing periodic financial statements; and
    • organizing and maintaining accurate records for the required retention periods.

Qualifications

It is extremely important that the bookkeeper:

    • possess a good working knowledge of law firm processes and procedures;
    • be or become familiar with the type of software you are using; 
    • possess above-average analytical skills to identify and rectify discrepancies; and
    • have good communication and people skills. 

A good bookkeeper will anticipate the year-end requirements of your business for preparation of year-end financials and your annual Law Society filings. This may save you outside accounting fees.

Lastly, it is highly recommended that the successful candidate has received training about the Rules of the Law Society of Alberta.

Where to Look

Once you have made a realistic assessment of your practice's needs and defined your expectations, you will need to hire the best candidate that you can afford.

Online employment websites—including networking websites like LinkedIn—may be helpful in your search. Employment agencies can be expensive. If you intend to use an employment agency, ensure they do more than just referring all those who respond to ads. It may also be worthwhile to check with employment referral services associated with the Chartered Professional Accountants of Alberta.

The Law Society maintains a list of bookkeepers, available upon request. This list is provided without any recommendation or endorsement and it is up to lawyers to conduct due diligence, including asking for references, to evaluate bookkeepers from this list.

Interview Tips

If the candidate has prior experience working with a lawyer, ask them about that experience. Trust accounting for lawyers can be more complex than accounting for many businesses. The following questions may help determine how much experience the candidate has working with lawyers:

    • Do lawyers charge GST?
      • GST is chargeable.
    • How often must a lawyer's trust and general accounts be reconciled?
      • They must be reconciled at least once a month.
    • What is the correct procedure if a shortage is discovered in a trust account?
      • You must immediately replace the shortage and refer to Rule 119.39 for further requirements.
    • Do you know where to find the latest trust accounting rules online?
      • Look at the Law Society of Alberta website.
    • What familiarity do you have with approved lawyer accounting software packages?
Last modified: Monday, 21 August 2023, 10:43 AM