Level 1

Law Firm. Advanced Client Costs that were paid by the firm's Operating Account. The expenses were not allocated to the individual clients, yet were received. How to Clean

Law Firm. Contingency based. Each matter (job) has billable expenses (Advanced Client Costs) that were / are paid by the firm's Operating Account. For years the expenses were not allocated to the individual client's for whom the costs were paid on their behalf. Though the firm did invoice the clients based on an external tracking of costs. The attorney takes their portion of the settlement and the client is invoiced for the cost and deducted from their settlement amount. The funds for fees and costs were then transferred separately to the general operating account. I have been going back through the years (2009 forward) and assigning the costs for the already paid advances to clients. So... sitting on the books shows a huge accounts receivable as I have created invoices for each client to cover the costs that were never allocated. How do I associate the client invoice with the money already taken from the trust and paid to the firm for those costs. Plus, I have to create invoices for the Fees paid to the attorney. I could just forget about clearing up the past and zeroing it out. Much less work for me yet not a true accounting of the firms business. Any thoughts would be appreciated.