Month: October 2018
Law firm billing and accounting requirements are inherently different from other service businesses. Even among legal practices, billing requirements can vary greatly from one area of practice to another.
Because time spent on billing and accounting is administrative and not billable, a law firm’s profitability depends on capturing all billable time and expenses, generating invoices in a timely manner and managing collection efforts proactively. Another highly important aspect that sets law firm billing apart from that of other businesses is that law firm billing and trust bookkeeping come under the purview of state ethics guidelines.
Law firms today cannot function without a legal billing software that fulfills the firm’s practice-specific billing needs and helps them avoid common billing pitfalls. The top ten most prevalent mistakes law firms make, when it comes to billing and accounting are:
Pitfall #10 Not Using Matter-Based Recordkeeping
Many service businesses perform multiple types of jobs for a customer and generate one invoice that covers everything. The same billing process does not work for law firms.
Matter based recordkeeping is unique to law firms. All transaction details must be kept at a matter level rather than client level. Law firms are usually required to keep each task (called “matter”) completely separate from other matters for the same client or other clients. For law firms, matter-based recordkeeping is critical because it allows them to produce proper records with ease for client billing inquires, billing disputes or state audits.
Pitfall #9 Not Accounting for Varied Types of Legal Matters
Accounting for retainers, time and expenses, etc. will vary depending upon the nature of the matter in question. Most law firms handle a variety of cases and use an assortment of client billing arrangements , such as hourly, retainer based hourly, fixed and contingency. A firm’s billing system must be able to handle all types of billing arrangements and the intricacies of each case.
Pitfall #8 Missing Flexibility in Setting Billing Rates
Professionals (or Timekeepers) at law firms are likely to have standard hourly rates for different tasks. An attorney billing software must be able to set Timekeeper rates accordingly, support discounted rates or a previous year’s rates for old matters, without much manual intervention.
Pitfall #7 Failure to Track and Allocate Disbursements
While law firms focus on capturing all billable hours, they often neglect to properly track and allocate expenses for billable matters. Expense tracking is just as important as time tracking. If you do not allocate expenses to a matter as expenses are incurred, you might never collect them. Matter expenses you forget to allocate are lost profits.
Expenses are typically paid in variety of ways (checks, credit cards and cash), adding another layer of difficulty. A trust account disbursement, however, is not an issue because the expense will come out of client funds.
Pitfall #6 Not Preparing Customized Professional Quality Bills & Reminders
The billing process is a direct reflection of your firm and is a vital part of your client communication. While law firms are conscious of providing top quality legal services, their high standards often fall short when it comes to client communications such as invoice and payment reminders. Not only is it important to generate invoices on a fixed billing cycle, but it also equally important to prepare professional quality invoices. Cluttered and hard to understand invoices are a recipe for late payments and client questions and are aspects of legal billing that become even more important when payments are in arrears.
Pitfall # 5 Not Utilizing Built-in Software Collection Support
Many law firms let unpaid bills pile up and end up with a collection problem. Take a proactive approach to debt collection rather than grappling with the issue after the fact. An efficient law office billing software will provide built-in collection support. Don’t wait for a billing cycle, if a matter’s unbilled balance has reached a low threshold point. Remember, bill collection is an on-going and vital practice management process.
Pitfall # 4 Not Checking for Client Conflict of Interest
For most law firms, conflict checking is a must. Your firm’s roster of clients is already available in your billing system. Instead of duplicating work, make every attempt to use the same system as a conflict checker. While developing a bulletproof conflict of interest system is challenging, development in today’s computer software makes it easy to build an integrated database that quickly identifies conflicts of interest.
Pitfall #3 Not Handling Client Advances Properly
Pitfall # 3 involves a host of potential problem areas. A law firm’s cash flow and profitability depend upon client advances (or retainers). However, from an accounting/bookkeeping perspective, client advances (retainers) need special treatment and must be handled carefully. The varied nature of client advances, an initial deposit to a trust and/or operating account, and reducing balances, as fees are earned, can significantly complicate your back office operation, if your billing system is not capable of processing retainer transactions systematically.
And, apart from itemizing legal fees and expenses, a legal time & billing software must always display remaining retainer balances on your client invoices.
Pitfall # 2 Loosing Track of Trust Funds
Every law firm endeavors to keep trust books clean and accurate, but most either fail or spend significant time and resources trying to do so. Ninety percent of the trust fund tracking battle is won, if your system provides integrated billing and trust bookkeeping . The trust bookkeeping portion of the system must prevent common trust errors (e.g. ledger card overdraft), provide a bank reconciliation tool and three-way reconciliation reports.
Pitfall # 1 Choosing Complex Software and Failure to Protect Data Integrity and Security
The most common and the most dangerous of all legal billing pitfalls include trying to cope with complex software, failure to protect data integrity and implement secure measures. Technological tools are more hindrance than help, if the tools are too complex to use. Software that isn’t user friendly and requires external consultants or trainers consumes valuable time and eats profits.
Data integrity and security are a matter of taking precautions to protect data from unauthorized access and use. You can minimize threats and easily avoid Pitfall #1, if your billing system has built-in features for controlling access to data, has checks in place for error detection and a regular data back-up function.
Reap the Benefits of Legal Billing Software Development
Computers and software have changed how companies everywhere do business. Technology today allows law firms and other businesses to compete with their larger counterparts on many levels.
Choose software with care and reap the benefits of technological developments in legal billing systems. Before you purchase legal billing software, analyze program features to ensure that the software’s design can help you avoid the ten common legal billing pitfalls. The right software will not only enhance your firm’s in-house capabilities and productivity, but will also help you comply with state ethics guidelines and increase profitability.
Vide Notification No. 8/2007 (N.T.) dated 01.03.2007, Rule 26 was amended and provision was added to penalize abatement of taking of inadmissible cenvat credit by making documents like invoices, transport documents etc. The Rule reads as, Rule 26(2): Any person, who issues – (i) an excise duty invoice without delivery of the goods specified therein or abets in making such invoice; or (ii) any other document or abets in making such document, on the basis of which the user of said invoice or document is likely to take or has taken any ineligible benefit under the Act or the rules made there under like claiming of CENVAT credit under the CENVAT Credit Rules, 2004 or refund, shall be liable to a penalty not exceeding the amount of such benefit or five thousand rupees, whichever is greater. The purpose of this paper to examine whether the rule can be applied retrospectively and can the past offences be penalized either through retrospective operation of these rules or on argument that such offences were already punishable under Rule 25 of the central Excise Rules, 2002. The Notification No. 8/2007 (N.T.) dated 01.03.2007 says that, After sub rule (1), the following sub rule shall be inserted:- The term -insert- has been defined in Webster Comprehensive Dictionary as -to put or place into something else-, -to introduce-. Oxford Dictionary also defines the term as -put something into something else-. A mere reading of the meaning of the term -insert- suggest that this is a new offence is being created and it cannot be applied retrospectively. The letter of the Joint Secretary (TRU) , explaining the changes states that, in clause 30(f) -A new sub rule (2) has also been inserted to provide for penal action against the person-.- It is seen that this is a new clause to -provide for- penal action. It is clear from this letter too that it is a new rule, which cannot be applied retrospectively. It is to be seen that the rule provides for penalty, a new burden on subjects. Whenever a new burden is imposed on the subjects, without amending the earlier clauses, it is presumed that the new burdens will operate retrospectively. While applying this principle of interpretation of statute the tribunal held in Cameo corporation [2008 (11) STR 161], -It is the consistent view of this Tribunal, where a new category of service is introduced for levy of service tax without amending the definition of a pre-existing category of service in which a given service answering the requisites of the new service is sought to be included by the Revenue for the prior period, there can be no levy of service tax in respect of the given service in the pre-existing category. This position has been made abundantly clear in umpteen number of decisions of this Bench also. In the result, the demand of duty on the gross amount collected by the assessee as consideration for what the Revenue considers as -Business Auxiliary Service- is set aside.- In view of this it is clear that the rules cannot be applied retrospectively. Further, as Rule 25 has not been amended, it cannot be argued that such offences were already part of Rule 25 of the Central Excise Rules. It is to be seen that penal statutes which creates offences or which have the effect of increasing penalties for existing offences will only be prospective by reason of the Constitutional restriction imposed by Article 20 of the Constitution . In Pyare Lal Sharma v. MD, J&K Industries Ltd. , the Supreme Court held that unauthorized absence as ground for termination applies only after the amendment making such ground. Unauthorised absence prior to the date of amendment cannot be considered for termination. It is further submitted that Rule 26 and its amendments are delegated legislation. In the field of subordinate legislation, the courts have taken a consistent view that while a legislature may enact laws with retrospective effect, a delegate cannot exercise a similar power and gives retrospectivity to the Rules made by it unless the parent statute gives it a power to do so either expressly or by necessary implication. In view of this this author is of the opinion that Rule 26(2) is prospective in operation and cannot be applied to past transactions.
If you want to change an employee’s terms and conditions of employment, you will need to get their agreement first. Otherwise, the employee may be entitled to sue for breach of contract, or resign and claim constructive dismissal. You must tell the employee in writing about any changes no later than one month after you have made the change. Do changes have to be in writing? Agreed changes don’t necessarily have to be in writing. However if they alter the terms in your ‘written statement of employment particulars’,
your employer must give you another written statement showing what has changed within a month of the change. Employee Enforcement of the Right Employees have certain rights. These rights are enforceable by law: The right of fair treatment regardless of age, race, religion, gender, disabilities, or sexual preferences The right to equal treatment, also with regard to wages The right no be dismissed without proper cause and the correct procedures The right not to get fired for giving birth to a child Employees also have the right to a proper written notice time for termination of their work agreement in relation to the period employed Employees have the right for compensation when they are retrenched Safe workplace Terminating the Employment ContractBoth employer and employee can terminate the employment contract according to the terms contained within it. Either side can make a complaint against the other.
Breach-of-Contract Claims Both employers and employees can be in breach of a contract of employment. A breach of contract happens when either employee or your employer breaks one of the terms. If an employee continues to work under these changes without objecting, they may be regarded as having accepted the changes. Not all the terms of a contract are written down. A breach may be of a verbally agreed term, a written term, or an ‘implied’ term of a contract. Employer would normally use a county court for a breach of contract claim. The only way an employer would be able to make an application to an Employment Tribunal is in response to a breach of contract claim that an employee has made. The most common breaches of contract by an employee are when they quit without giving (or working) proper notice, or when they go to work for a competitor when their contract doesn’t allow it. Our Employment Law DocumentsAvailable documents include employment contract templates, as well as a director contract template and a range of employment policies. Our documents are designed for use in England and Wales. Our Contract of Employment Template is easy to customize to your business’ requirements.
They provide comprehensive legal protection, whilst avoiding excessive legal jargon. They have been designed with ease-of-use in mind. To this end, they include guidance notes. They are excellent value and available for immediate download. All the templates have been drafted by a team of Solicitors and Barristers who are expert in the field of employment.
If you want to change an employee’s terms and conditions of employment, you will need to get their agreement first. Otherwise, the employee may be entitled to sue for breach of contract, or resign and claim constructive dismissal. You must tell the employee in writing about any changes no later than one month after you have made the change. Do changes have to be in writing? Agreed changes don’t necessarily have to be in writing. However if they alter the terms in your ‘written statement of employment particulars’,
your employer must give you another written statement showing what has changed within a month of the change. Employee Enforcement of the Right Employees have certain rights. These rights are enforceable by law: The right of fair treatment regardless of age, race, religion, gender, disabilities, or sexual preferences The right to equal treatment, also with regard to wages The right no be dismissed without proper cause and the correct procedures The right not to get fired for giving birth to a child Employees also have the right to a proper written notice time for termination of their work agreement in relation to the period employed Employees have the right for compensation when they are retrenched Safe workplace Terminating the Employment ContractBoth employer and employee can terminate the employment contract according to the terms contained within it. Either side can make a complaint against the other.
Breach-of-Contract Claims Both employers and employees can be in breach of a contract of employment. A breach of contract happens when either employee or your employer breaks one of the terms. If an employee continues to work under these changes without objecting, they may be regarded as having accepted the changes. Not all the terms of a contract are written down. A breach may be of a verbally agreed term, a written term, or an ‘implied’ term of a contract. Employer would normally use a county court for a breach of contract claim. The only way an employer would be able to make an application to an Employment Tribunal is in response to a breach of contract claim that an employee has made. The most common breaches of contract by an employee are when they quit without giving (or working) proper notice, or when they go to work for a competitor when their contract doesn’t allow it. Our Employment Law DocumentsAvailable documents include employment contract templates, as well as a director contract template and a range of employment policies. Our documents are designed for use in England and Wales. Our Contract of Employment Template is easy to customize to your business’ requirements.
They provide comprehensive legal protection, whilst avoiding excessive legal jargon. They have been designed with ease-of-use in mind. To this end, they include guidance notes. They are excellent value and available for immediate download. All the templates have been drafted by a team of Solicitors and Barristers who are expert in the field of employment.
Do you think you’re a resident of California trying to find a competent family law lawyer to handle your case in the divorce, infant custody, and alimony or property separation case? Simply visit oc California bar association lawyer referral service. Aside from personally interviewing a quantity of lawyers, referral services work most effectively supply of professional and experienced family law lawyers in Orange County./p>
Because oc comes second one of the most populous counties in California, you can be positive to get one of many many family law attorneys which will match your legal needs and have a mutual solution. It is essential is usually to examine legal counsel referral service with a reputation. While many services will just help you find an attorney, others will assure you find legal counsel who matches your case.
Fortunately, there are several referral services in Orange County that happen to be reliable. These include
1. 1. Online referral services
2. 2. Public referral services
3. 3. Private referral services
Each one of these referral services differ in cost, how much information given about lawyers, number of lawyers, lawyer qualification to go in the service, etc. if you’re finding it difficult to acquire a good lawyer from these sources, there are a myriad other referral services that is to be of proper help. A good example may be the Legal Aid Society of Oc which supplies services to low income earners and elderly people.
Advantages of choosing an attorney referral service in Oc
Many individuals facing emotional life events inside their families prefer using referral services to get good family law lawyers to operate on their cases due to advantages the service offers. Many of the advantages are
– Offer a way to utilize a family law lawyer who may have been pre-screened for their expertise and experience
– There exists a plethora of trained and multilingual attorneys who provide a listening ear anytime to chat
– Be assured that the lawyer includes a malpractice insurance
– Be able to think about reviews in regards to a lawyer’s performance along with what former clients say
– You can be positive that whichever lawyer you decide on has a good standing together with the California state bar in addition to American bar association
– The speed of initial consultation is generally reduced in referral services, some are even offered free of charge
– Obtain a second, third and even fourth opinion about your case
Browsing a referral service saves time. For instance, you just mention your case once.
– High amount of confidentiality particularly if include the kind that does not want people to know what is going on with you and the family
Cases which entail the family like a unit usually cause you to go through trying and emotional moments. When the case is not handled well, it could lead stress, depression or even suicide. The achievements of the case starts from your initial steps of choosing a family law lawyer. There isn’t any better method to make the best decision about which family lawyer to work with other than a lawyer referral service in Orange County.
See Attorney Julian Fox> at the State Bar of California site at http://members.calbar.ca.gov/fal/Member/Detail/144716.
If you are faced with legal issues, there is no other way of getting out or ahead of them other than getting assistance from someone who knows legal matters best. A lot of solicitors in the United Kingdom proliferate over the country to extend help to people who need to go through due processes. Every solicitor works on varied specialisations, and you should take it upon yourself that the firm of your choice is offering the legal service that you need.
An example of common legal services provided by solicitors is residential conveyance. House transfers can leave you stressed, especially the paperwork. Properties entail legal papers, and whether you are a greenhorn buyer or an experienced property developer, it can be beneficial to seek help from solicitors.
There are a lot of concerns regarding property ownership – but they can possibly work on it for you. Dealing with properties would mean having to deal with land registration, or possible mortgages. You might have queries about boundaries and how much claim you can acquire. These can be answerable by legal counsels who have gained years of experiences in handling legal land titles for different kinds of owners. Moreover, in the case of property developers, assistance can be addressed specifically to the likes of planning agreements, conditional contracts, pound acquisitions and unilateral undertakings.
Suppose you are planning to invest in a small-scale business. Eventually, if coupled with hard work and perseverance, you may develop into a multinational company. Chances are you need to keep your business on the road and you need a reliable team of law experts to take care of commercial legal matters.
Solicitors give assistance to private or public companies that want to put in effort for their company’s legalities. These people will work closely with you, like they are part of your team, and will work towards achieving the same goal as yours.
In a similar scenario, should you be caught off guard in a corporate crisis, there are groups of lawyers who can help you in difficult decision making to recover your investment and re-align your corporate goals. Solicitors will work as your ally, so that all transactions are marked with legality.
For employers and employees who share a working relationship, legal advice is indispensable. Both parties are covered by employments laws that are very well covered and defined upon contract signing – a proof of mutual agreement. For an employee’s part, solicitors can walk him through employments rights that are owed to him. Employers, on the other hand, can consult for legal advice regarding revisions of new contracts before they are implemented to new workers. Employment policies are dynamic and if an employer seeks legislation of new rules, implementation is possible through a revised contract. However, even in the best of companies, a power struggle between both parties is inevitable.
The line can be therefore drawn if there are rules to set things straight and there are lawyers who can give no-nonsense counsel. Consulting legal solicitors will pave the way for an honest appraisal of the matter, so that you will know where exactly you stand and the other will know where you are coming from.