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Legal business accounting software from CosmoLex is designed to handle the unique and intricate legal-specific bookkeeping requirements. And because it is built-in as a fundamental component of the CosmoLex Cloud system, CosmoLex takes care of your law firm’s accounting in the background, automatically and accurately, as you perform your day to day practice management and billing activities.
Our legal business accounting software includes a complete general ledger system that is fully integrated with legal billing, thus preventing any need for duplicate data entries or tedious export/imports into general accounting software.
The lack of a legal-specific Chart of Accounts on your general ledger, and properly entering transactions to those accounts leads to fiscal reporting and compliance issues. Since CosmoLex is designed for law firms, we provide a complete chart of accounts out-of-the- box. Here are some of the legal specific accounts included with the system:
CosmoLex legal accounting software includes everything needed to stay in compliance with regulations that specifically pertain to lawyers. One of the biggest benefits of CosmoLex is its ability to prevent accounting mistakes. At every level, program is designed to protect and prevent lawyers from making accounting mistakes. For example:
All law firms want to stay compliant, and they try complex maneuvers in general business accounting software. CosmoLex legal accounting software gives you a high level of sophistication that includes the following.
Import electronic bank/credit card statements (QBO format) for automated data entries. This feature is useful to import monthly credit card transactions as these are normally entered on one statement becomes available. Built-in adaptive mapping rules corrects payee names and memorizes chart of account(s). You can even post matter cost related transactions while importing, thus preventing a major source of missed expense entries. This import feature is also used by new CosmoLex users in migration of their historical bank transactions.
Matter Cost Accounting – Three simple words that make every lawyer wince for good reasons. It’s an area of law practice operations that is eternally unforgiving. Inadequate internal accounting procedures fail to capture matter related costs, resulting in lost revenue and, in some cases, tax and ethics compliance consequences. CosmoLex legal accounting software provides a number of tools to ensure compliance and profitability at the same time:
A daily accounting activity at law firms is proper posting of invoice payments. Liabilities and costs must be paid first, prior to applying anything to income. Without a specialized legal business accounting software such as CosmoLex, this activity can often be time consuming, frustrating and prone to errors, which only get worse if partial payments are received. CosmoLex automates this complex activity 100%, and all users need to do is receive payments against invoices. Since legal business accounting software by CosmoLex has the exact breakdown of each invoice components, it automatically allocates revenue in this order: Liabilities, Assets, Expenses, Income. Whether a payment is partial, full or even extra, your accounting is automatic and accurate.
Do you know which practice areas are most profitable, which practice area is your firm’s “rainmaker”, and which ones need more marketing attention? In CosmoLex, you can create multiple “income sub-accounts” within your fee income structure and make these part of the matter setup. Thats it. After that, as matter invoices are paid, fee income is credited to its specific income account.
Computation of collection is a critical management function, is a measure of productivity and most importantly, helps facilitates apportion fee allocation to timekeepers by work/collection activities; distribution mechanism for improved cash flow for outside counsel. However, just because it is critical does not make it easy. An invoice can have multiple components such as costs, other charges, fees from multiple resources and it might get paid in installments. In CosmoLex, you can generate Collection Reports for each biller or matter owners with a click of a button.
Journal entries are normally made by the law firm accountant for occasional one-time adjustments between accounts, payroll entries, as well as year end depreciation and amortization bookings. CosmoLex provides a “book closing date” feature so an accountant can lock the books up to a particular date to prevent accidental edits once books are closed.
In CosmoLex, you can “memorize” frequently used payees for quicker transaction entries and accurate check printing. You can also memorize an account (or set of accounts) thus preventing wrong postings. For example, you can memorize your landlord with account “Rent”. Now, every time you record a payment to your landlord, your “Rent” account will be pre-selected. This feature is especially useful to record payroll entries as those involve use of multiple accounts on an ongoing basis.
Credit cards play an important role in accounting for multiple reasons. Credit cards can be used for both office expenses, as well as for matter costs, which need to be posted for billing. CosmoLex provides full support for credit card bank accounts. You can enter or import statement transactions (QBO format), post cost to matters for billing and reconcile statements. As transactions are imported, CosmoLex will automatically build “mapping rules” that will auto-populate correct payee names and chart of account(s). Adaptive mapping rules make statement transaction imports simpler and accurate.
CosmoLex legal accounting software may be 100% cloud-based, but that doesn’t mean you have to go paperless. You can print checks directly from the program to your office printer using our check paper stock. You have the option to print voucher or standard check formats. And, if you use voucher format, we even print the transaction’s general ledger account in the Memo 2 line for robust recordkeeping.
You can auto-reconcile book transactions with electronic bank statement data (QBO format) or reconcile manually. Monthly reconciliation is a critical bookkeeping tasks and helps you locate errors (from your side or the bank’s side).
A crucial benefit of CosmoLex legal business accounting software is the availability of performance, financial and management reports, all in one place. Our operating accounting software includes the following reports,which can be printed or saved as PDF/Excel formats:
Profit and Loss Balance Sheet Trial Balances General Ledger Sales Tax
"Legal Business Accounting Software" is part of the CosmoLex line of products, developed by CosmoLex.