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Ensuring your Law Firm’s trust accounting is risk free and compliant all year round – Article of the Month

Featured Article co-authored by LY Intern, Lan Mai and Karen Kennedy from Bookit Bookkeeping

Considering a more effective way to manage your trust accounts? Bookit has just the answer. As Founder and Registered BAS Agent of Bookit, Karen Kennedy takes us through the fundamental elements to shield your firm from exposure to a compliance risk in trust accounting.

Article Summary Points:

  • Management of trust account without disruption.
  • Managing compliance risk.
  • Partnering with Bookit.
  • Advantages of partnering with external bookkeeper.
  • Do you need legal advice?

Why is it important to ensure you have your firm’s trust account attended to 52 weeks a year?

Trust accounting is of the utmost importance to a legal firm as the money held belongs to their clients. Extensive rules and regulations surrounding the maintenance and management of trust accounts also makes it critical to accurately monitor and reconcile these accounts on a daily basis. Moreover, having the trust account managed by the same person will ensure consistency and accountability.

How can your firm be exposed to compliance risks if your internal accounts team goes away on holiday?

Exposure of compliance risk and contravention of law can often arise in situations where a team member is absent for a duration of time, or the account is left unattended and/or unreconciled. These circumstances demonstrate the importance of appropriate procedures and processes in place. If your designated personnel are absent, the firm should be able to effectively and efficiently assign another team member to manage the trust accounting without disruption.

How does partnering with Bookit work?

Bookit offers free consultation to clients. Their services are flexible and includes the following:

  • Management of clients’ entire trust accounts including billing, disbursements, trust to office transfers, receipting and other record keeping.
  • Bookit tailor their services to suits your firms needs, making it seamless for clients.
  • Having partnered with many firms, Bookit has adapted and is highly experienced in a wide range of practice management/accounting systems used by clients including also their implementation.
  • Every Bookit client is assigned a dedicated Account Manager. They are supported by the Bookit team.
  • Bookit assist with and work with your firms Auditor for a seamless year end audit.
  • Bookit commence on an hourly rate with new clients. Once a clear scope of work required is ascertained you will then move to a tailored fixed monthly fee so you know in exactly what you are paying each month, great for cashflow and budgeting!

The Bookit team are LIV certified and conduct continuous professional development to upskill their knowledge and competency. Bookit are also an Approved Supplier of the LPLC. Having over 100yrs of combined experience, the Bookit team are highly experienced to take care of your firms accounts.

What advantages are there partnering with an external bookkeeper vs hiring an internal accounts?

You can be assured that your accounts will always be attended to with no obstruction including continuity of service, offering a substantial cost benefit not to mention having a team of experts monitor and manage your accounts. Partnering with Bookit is more value compared to employing a full-time inhouse bookkeeper where employment obligations including leave entitlements, payroll tax, workers compensation and superannuation are compulsory.

Want an honest, reliable, experienced and certified team managing your accounts? Contact Karen Kennedy at Bookit on 1300 561 315 or via https://bookit.net.au/ for your free consultation.

This Featured Article post does not constitute legal advice or a legal opinion on any matter discussed and, accordingly, it should not be relied upon. It should not be regarded as a comprehensive statement of the law and practice in this area.

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No individual who is a member, partner, shareholder or consultant of, in or to any constituent part of Legally Yours Pty Ltd accepts or assumes responsibility, or has any liability, to any person in respect of this article.