Part of the process of setting up your legal accounting is the chart of accounts. The chart of accounts is the accounts that will be used to categorize all transactions that happen within your law firm. The most common problem is the chart of accounts that is used is not set up for law firms and many transactions do not get tracked properly. With many law firms, there is a risk of the chart of accounts being too specific and having too many accounts. I have created an example of what an effective chart of accounts may look like for a law firm. This may vary as each law firm is organized differently.
