Accountants Law Pod™

27 Feb 2025 · 33 min

0:00

In this episode of the Accountants LawPod, hosts Sarah Prevost, Linda Artesani, and Steven Libhart discuss the wide‑ranging consequences of poor bookkeeping in law firms. They begin by lamenting the chaotic 1099/W‑9 collection season, noting last‑year changes like Venmo reporting and the difficulty of obtaining tax IDs from vendors and clients. The conversation shifts to trust accounting, advanced client costs, and the complexities of reconciling these accounts, especially when software tools (QuickBooks, Clio, LeanLaw) don’t integrate seamlessly. A real‑world case is recounted where a bookkeeper duplicated a large transaction three times, leading to an over‑$1 million overstated revenue and a cascade of tax and compliance issues. The hosts explore why such errors slip past tax preparers, the importance of proper vendor onboarding, and the need for three‑way bank reconciliations. They then share practical advice: avoid using transfers for bookkeeping, understand the backend of accounting software, use re‑classification tools, start with small accounts, be transparent about skill gaps, and manage imposter syndrome. Throughout, they stress the ethical responsibility of bookkeepers to attorneys, the cost of hiring cheap, inexperienced bookkeepers, and the value of continuous learning and collaboration. The episode closes with calls to action for listeners to subscribe, join mastermind sessions, and reach out with questions.

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