Finance and Budget

  • Profit/ Loss budget

    I strongly recommend coming up with at least a one year budget before moving forward with your law practice. I did my first budget in QuickBooks 2013, but subsequently created a separate budget in Microsoft Excel.  I actually prefer working with the Excel budget even though it probably makes more sense to keep all financial data together …more

  • Bank Accounts accounting

    Yes.  Accounts, plural.  Law practices, even start-up solo practices, are separate legal entities.  Law practices should have at least two bank accounts.  In addition, lawyers have personal accounts, which are separate from the law practice accounts. The firm’s bank accounts: A business operating account for the practice income (e.g., collected fees for services rendered) and expenses (e.g., rent, salary, …more

  • Trust Account bank

    I opened my trust account at the same time I opened my business operating account. According to the State Bar of California: “[l]awyers who handle small amounts of money for their clients, or money that is held for a short period of time, must . . . deposit[] these funds into an Interest on Lawyers’ …more

More Resources:

IOLTA Basics: What You Need to Know by Dan Duran and Lorrie Pendleton, published on Legal by the Bay
Finances & Profitability: Must-Read Resources at the San Francisco Law Library, posted on Legal by the Bay, July 18, 2016