Even in the busiest law practices, taking time once a month to review your financials can prevent costly mistakes and keep the firm on solid ground. This checklist gives you a simple, structured way to stay on top of the numbers—whether you’re tracking revenue, monitoring expenses, or making sure compliance obligations are met. Think of it as your monthly tune-up to keep the financial engine running smoothly.
✅ Monthly Financial Review Checklist
1. Billing and Accounts Receivable
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Review time entries and ensure all billable hours have been captured
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Finalize and send out client invoices
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Run aging report for outstanding receivables
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Follow up on invoices past due (30/60/90+ days)
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Flag clients who may require payment plans or special handling
2. Trust Accounts
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Reconcile trust account(s) with bank statements
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Confirm that all trust ledger entries are accurate and client-specific
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Verify no commingling of client funds with operating funds
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Document three-way reconciliation (bank, client ledger, firm records)
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Report any discrepancies immediately for internal follow-up
3. Operating Accounts
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Reconcile operating account with bank statement
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Review all deposits and withdrawals for accuracy
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Ensure all credit card transactions are recorded correctly
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Verify expense allocations are coded properly (software, travel, court fees, etc.)
4. Financial Reports
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Generate and review profit & loss statement
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Review monthly balance sheet
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Compare current month vs. previous month and vs. year-to-date
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Track performance against the annual budget or forecast
5. Payroll and Compensation
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Confirm payroll was processed correctly and on time
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Review payroll taxes and benefits contributions
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Double-check any bonuses, reimbursements, or adjustments
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Ensure accurate time tracking for hourly or support staff
6. Compliance and Documentation
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Store copies of reconciliations and reports in a secure location
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Update internal documentation for financial procedures, if needed
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Ensure compliance with applicable bar rules regarding financial handling
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Log all reviews and approvals in a monthly financial control sheet
7. Planning and Forecasting
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Flag any irregularities or concerns for further review
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Identify cost-saving opportunities or overspending trends
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Set financial goals or targets for the upcoming month
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Schedule next month’s review date and prep checklist