THE LATEST DEVELOPMENTS IN LAW FIRM ACCOUNTING

Accounting for law firm USA
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Managing Risk in Law Firm Accounting: Strategies for Fraud Prevention and Detection

Managing risk in law firm accounting is an essential aspect of ensuring the financial health and success of a practice. One of the most critical risks that law firms face is the possibility of fraud, which can take many forms, from embezzlement…
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Legal Accounting Service NY
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The Benefits of Outsourcing Law Firm Accounting: Why it’s worth considering

As the legal industry becomes increasingly competitive, law firms are continually seeking ways to optimize their operations and boost efficiency. One area where many firms find themselves facing significant challenges is accounting. Outsourcing…
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Law Accountant NY
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Are Associate Bonuses “Wages”?

A Brief History Of Associate Bonuses The history of bonus payments to associates at law firms is a tale of ups and downs, twists and turns, and a whole lot of debate. It began in the 1980s, when a select few elite law firms started doling…
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Law Accountant NY
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When a law firm receives settlement funds, may or must the firm distribute the funds over and above those owed to the client (including referral fees and expenses), or must the firm instead first transfer the settlement funds to the firm’s operating account?

New York State Bar Association Special Account Guidelines for Lawyers The New York State Bar Association Committee on Professional Ethics, in its Opinion 1127 (7/7/17), expressed the view that settlement proceeds "must be deposited into an…
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Legal Bookkeeping Solution NY
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Expert Notes Need For “External Accounts” As Lawyer Misappropriates $300,000 From Barclay Damon

As law firm escrow account breaches continue to impact law firms, one expert suggests external accountants.  The New York Law Journal reports that a trusts and estates lawyer in Albany who was a senior partner at Barclay Damon was charged…
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Attorney Accountant NY
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Inadvertent Misappropriation Earns Attorney A One-Year Suspension

Unintentional And Easily Avoidable Error Leads To Suspension Even Though Parties Agreed That Attorney "Did Not Steal Or Borrow Money From The Escrow Account" In Matter of Polanco, a case concerning inadvertent misappropriation, the court suspended…
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Tax Accountant Lawyer Brooklyn
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The Lawyers’ Fund for Client Protection paid more than $10 million in 2017, the second-largest single-year payout in the 35-year history of the fund

Second-Largest Single-Year Payout by Lawyers' Fund For Client Protection Emphasizing the need for proper law firm accounting, the New York Law Journal reports that the New York Lawyers’ Fund for Client Protection, which reimburses clients…
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Law Office Accounting NY
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Attorney Suspended For Commingling Funds, Improper Withdrawals, Failure To Reconcile Account

In Matter of Lenowitz, 2018 N.Y. App. Div. LEXIS 2461 (1st Dept. Apr. 11, 2018), despite 42 years of practice and a single admonition, an attorney's routine disregard for proper financial management led to a two-year suspension for misappropriation…
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Lawyer Accounting NY
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Attorney Suspended For Depositing Checks He Received On Behalf Of His Client Into His Own Business/Operating Account And Improperly Commingling Those Funds

In Matter of Goldsmith, 2018 N.Y. App. Div. LEXIS 1410 (1st Dept. Mar. 1, 2018), the Court suspended an attorney who deposited checks he received on behalf of his client in a breach of contract action into his own operating account…
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Law Ledgers is an accounting firm providing full-charge tax and bookkeeping services to New York lawyers and law firms.  Our work focuses on meeting the unique needs of the legal profession, assuring compliance with the stringent record-keeping and reporting requirements of doing business and paying taxes in New York while also maximizing profits. To learn more, call us at 1 (929) 327-7711, or contact us by e-mail for general inquiries at staff@lawledgers.com.