Running a legal firm’s finances can be challenging and frustrating, especially if you handle your own bookkeeping. Lawyers are required to handle client funds in accordance with particular statutory requirements. Create all of the accounts your law practice will require to have a strong financial start. Create a separate bank account for your company so that you can deposit client payments there and use it to cover expenses. You must budget for taxes, business registration fees, and other licensing costs as well. Make sure you’ve set aside enough money to cover these commitments.
Decide on the marketing and advertising costs you’ll incur, such as for brochures, a website, business cards, and announcements. You must decide whether to bill clients on an hourly or fixed basis, as well as the rates, billing cycle, and terms of payment. Whether you’ve employed full- or part-time employees, you must take employee remuneration into consideration.