Lynda ArtesaniLegal Accountant and Data Migration Specialist at The Proper Trust

Don't Pay Extra in Taxes: Avoid This Common Law Firm Pitfall!

11 Oct 2024 · 1 min

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Law firms often record invoices, payments, and deposits twice in their legal-fees account, inflating their reported income and causing them to overpay taxes. Fixing these bookkeeping errors can save significant money by reducing unnecessary tax liability.

First off, the biggest thing I'd like to say is, do you want to pay extra in taxes because you misrecorded everything? Amen. I don't think so.
Because sometimes, sometimes they're trying to save money and not pay. They look at us as overhead. But then if they actually look at the fact that we could save them money because maybe the person in that seat is recording invoices and payments and then deposits are all being booked to legal fees. Here and you're doing it twice. Now you've got double income. Those are the things we've seen in files that we're like, oh my goodness.