Episode

27 Feb 2025 · 32 min

0:00

In this episode of Accountants LawPod, hosts Lynda Artesani, Sarah Prevost, and Stephen Libhardt discuss the wide‑ranging consequences of poor bookkeeping in law firms. They begin by describing the annual headache of 1099 and W‑9 collection, especially after last‑minute changes like Venmo’s new reporting rules, and the pushback they receive from vendors and clients. The conversation then shifts to deeper accounting challenges unique to legal practice: trust‑account handling, advanced client costs, and the risk of overstated revenue caused by duplicate entries or mis‑classifications, illustrated by a "million‑dollar" mistake where a bookkeeper entered the same transaction multiple times. They share real‑world anecdotes of missing W‑9s, faulty vendor onboarding, and software quirks in QuickBooks, Clio, LeanLaw, and other platforms, emphasizing the need for three‑way bank reconciliations, re‑class tools, and careful review of backend T‑accounts. The hosts also explore the professional side of bookkeeping for attorneys, covering imposter syndrome, ethical responsibilities, the importance of understanding bar rules, and the value of honest communication with clients. Practical advice includes avoiding transfer entries, locking down passwords, establishing clear vendor onboarding workflows, and investing time in learning the software’s hidden features. Throughout, they stress that a bad bookkeeper can cause massive financial, tax, and compliance fallout, especially for solo attorneys who may opt for cheaper, inexperienced services, ultimately costing more in remediation. The episode ends with a call to action for listeners to subscribe, join their mastermind sessions, and reach out with questions.

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