Free Law Firm Financial Checklist Template
Law Firm Financial Checklist
This checklist is designed to assist in ensuring the financial operations of [Your Company Name] comply with relevant laws and standards in the United States. By following this checklist, the firm can maintain financial transparency, integrity, and compliance with regulatory requirements.
Financial Reporting and Compliance
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Prepare and file annual financial reports in accordance with Generally Accepted Accounting Principles (GAAP). |
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Ensure compliance with the Sarbanes-Oxley Act (SOX), if applicable. Review and update financial policies and procedures regularly to reflect changes in laws and regulations. |
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Conduct internal audits to assess compliance with financial regulations and identify areas for improvement. |
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Retain financial records and documents as required by law. |
Client Trust Accounting
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Maintain separate client trust accounts in compliance with state bar association rules. |
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Segregate client funds from the firm's operating funds. |
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Reconcile client trust accounts monthly to ensure accuracy and identify discrepancies. |
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Provide clients with timely and accurate statements of their trust account balances. |
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Obtain written authorization before withdrawing funds from client trust accounts. |
Billing and Fee Arrangements
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Establish clear fee agreements with clients, detailing rates, billing methods, and payment terms. |
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Invoice clients promptly and accurately for legal services rendered. |
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Document all billable hours and expenses incurred on client matters. |
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Review and approve billing entries for accuracy and compliance with fee agreements. |
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Monitor accounts receivable and follow up on overdue payments. |
Expense Management
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Implement policies and procedures for expense reimbursement, including allowable expenses and documentation requirements. |
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Monitor and control non-billable expenses to ensure they are reasonable and necessary for business operations. |
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Review and approve all firm expenditures to prevent unauthorized or excessive spending. |
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Negotiate favorable terms with vendors and service providers to minimize costs. |
Tax Compliance
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File federal, state, and local tax returns accurately and on time. |
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Maintain records of income, expenses, and deductions to support tax filings. |
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Comply with tax laws related to employee payroll, benefits, and withholding. |
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Stay informed about changes to tax laws and regulations that may affect the firm's tax obligations. |
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Consult with tax professionals to ensure compliance and minimize tax liabilities. |
