Legal Bookkeper

[nwabisa29]

Hi everyone

Does anyone know the difference Normal Bookkeeper and a Bookkeeper for a legal practice ?

Please help!!

Thanks

[Alec Candiotes]

Hello Nwabisa

There is no qualification difference between these 2 types of bookkeepers. Accounting for a legal practice however is unique when it comes to trust accounting. It is a little like accounting in reverse. I audited the trusts of many legal firms (small to large) in my days at PwC, so I have a good understanding of it.

To explain the method of accounting over this thread will not work. If you want you can send me an email and I can see how I can guide you in the right direction. Alternatively you can also make contact with Elria Jongbloed. She is a freelance legal bookkeeper with more than 30 years experience in this field. Brilliant on this subject matter.

Her contact details:
Cell: 082 402 9896
Email: elriac@gmail.com

Kindest regards,
Alec Candiotes CA(SA), MCom Taxation

[Jessymathew]

Hi everyone

Does anyone know the difference Normal Bookkeeper and a Bookkeeper for a legal practice ?

Please help!!

Thanks

let's clarify the real differences between a "Normal Bookkeeper" and a "Bookkeeper for a Legal Practice":

1. Scope of Responsibilities:

• A normal bookkeeper handles general financial tasks for a variety of businesses, such as recording transactions, reconciling accounts, and preparing financial reports.
• A bookkeeper for a legal practice specializes in managing the unique financial needs of law firms, including handling client trust accounts, legal billing, and ensuring compliance with legal regulations.

2. Knowledge and Expertise:

• A normal bookkeeper has a solid understanding of standard accounting principles and practices.
• A bookkeeper for a legal practice requires specialized knowledge of legal terminology, trust accounting rules, and legal billing procedures.

3. Client Trust Accounts:

• Normal bookkeepers typically do not deal with client trust accounts.
• Bookkeepers for legal practices are responsible for managing and reconciling client trust accounts, which are crucial in safeguarding client funds and adhering to legal and ethical standards.

4. Compliance and Ethics:

• While both roles require ethical conduct, bookkeepers for legal practices must adhere to strict ethical standards imposed by legal authorities and bar associations to protect client funds and maintain trust account integrity.
• Normal bookkeepers follow general financial regulations and industry standards but are not bound by the same level of legal and ethical oversight as bookkeepers in legal practices.

5. Billing and Time Tracking:

• Normal bookkeepers may not be involved in billing or time tracking for clients.
• Bookkeepers for legal practices frequently handle tracking billable hours, generating detailed legal invoices, and ensuring accurate client billing.

6. Expense Allocation:

• Normal bookkeepers may allocate general business expenses.
• Bookkeepers for legal practices allocate expenses related to specific legal cases, which can vary significantly from case to case.

In summary, the main difference lies in the specialized knowledge, responsibilities, and ethical considerations required of bookkeepers working within the legal field, where the management of client trust accounts and adherence to legal regulations are of paramount importance.