• Generate and Review Invoices:
  • Ensure that all billable hours and expenses for each client have been accurately captured. Double-check for any missed entries that could affect billing.
• Invoice Accuracy:
  • Verify that invoices reflect the correct rates, discounts, and any agreed-upon payment terms. Ensure that there are no errors in the client details.
• Send Invoices to Clients:
  • Ensure invoices are sent out promptly via the agreed-upon method (email, mail, or through a client portal).

2. Payments Received and Logged

• Confirm Receipt of Payments:
  • Check the firm’s bank accounts and payment systems to confirm all client payments have been received for the month.
• Record Payments in the Accounting System:
  • Accurately log all payments received, specifying the client, invoice number, and date of payment.
• Apply Payments to Invoices:
  • Ensure that payments are correctly applied to the corresponding invoices, updating any outstanding balances accordingly.

3. Expenses Recorded

• Review Monthly Expenses:
  • Collect all expense receipts and documentation for the month, including office supplies, software subscriptions, utilities, and any other costs.
• Categorize and Record Expenses:
  • Ensure that each expense is properly categorized in the accounting software for accurate financial reporting.
• Reconcile Credit Card Statements:
  • Match all recorded expenses with credit card statements to ensure there are no discrepancies.

4. Trust Account Reconciliation

• Reconcile Trust Accounts:
  • Ensure all client trust funds are accurately accounted for, with a clear record of deposits and withdrawals.
• Compliance Check:
  • Verify that all trust account transactions comply with state regulations and ethical guidelines. Ensure no commingling of client funds.
• Update Client Ledgers:
  • Update each client’s ledger to reflect trust account activity, ensuring transparency and accuracy.

5. Profit and Loss Statement Reviewed

• Generate Profit and Loss Statement:
  • Create a profit and loss statement for the month, detailing all income and expenses.
• Analyze Financial Health:
  • Review the statement to assess the firm’s profitability, noting any significant changes in income or expenses compared to previous months.
• Identify Trends:
  • Look for patterns in revenue and costs that could impact the firm’s financial stability, such as seasonal fluctuations or unexpected expenses.

6. Budget Comparison Analysis

• Compare Actuals to Budget:
  • Review the month’s financials against the budget to identify any variances between projected and actual figures.
• Investigate Variances:
  • Analyze any significant variances to understand their cause, such as unexpected expenses or lower-than-expected revenue.
• Adjust Future Budgets:
  • Use the insights gained to adjust future budgets, making room for potential cost savings or reallocating funds where necessary.

7. Outstanding Invoices Follow-Up

• Review Aging Report:
  • Generate an aging report to identify any outstanding invoices and categorize them by the length of time they’ve been overdue.
• Contact Clients:
  • Reach out to clients with outstanding invoices, following up politely but firmly to ensure payment is received.
• Document Follow-Up Efforts:
  • Record all follow-up communications and responses in the client’s file to maintain a clear history of payment efforts.
• Consider Payment Plans:
  • If necessary, discuss payment plan options with clients who may be experiencing financial difficulties, ensuring terms are mutually agreeable and documented.