Xero bookkeeping for law firms

The firm's business accounts in Xero

Fees are invoiced in your practice management system. We record those invoices and the disbursements you recharge in Xero, then keep them matched to the bank so the firm can see what it is owed and by whom.

• Fee invoices raised in your practice management system recorded in Xero and checked against its billing report each month
• Payments received into the firm's business account matched to the fee invoices they settle, including part payments
• Disbursements the firm pays for clients, such as search, filing and courier costs, recorded against the client and matter, then checked off when they are recharged
• A monthly list of disbursements paid but not yet recharged, so they can go on the client's next bill
• Aged receivables from Xero each month, showing overdue fee invoices by client for the firm to follow up
• Running costs such as professional indemnity insurance, practising certificates, research databases and rent kept as bills in Xero and matched when paid
• The firm's business bank and credit card statements compared with Xero, with each difference explained, such as an uncleared cheque or a bank error raised with the bank

Businesses by main state or territory

These counts are for the ANZSIC class Legal Services, which also covers barristers and conveyancing services, so they describe a wider group than law firms.