PCLaw Month-end Close Processes December 11, 2015 11011 Richmond, - - PowerPoint PPT Presentation

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PCLaw Month-end Close Processes December 11, 2015 11011 Richmond, - - PowerPoint PPT Presentation

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2015 Feature Friday PCLaw Month-end Close Processes December 11, 2015 11011 Richmond, Suite 600 | Houston, Texas 77042 | 713.789.3323 | www.3545consulting.com 0 Serving our National and International Clients Phone: 888-866-3545

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11011 Richmond, Suite 600 | Houston, Texas 77042 | 713.789.3323 | www.3545consulting.com

2015 Feature Friday

PCLaw Month-end Close Processes

December 11, 2015

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11011 Richmond, Suite 600 | Houston, Texas 77042 | 713.789.3323 | www.3545consulting.com

Serving our National and International Clients

Phone: 888-866-3545 www.3545consulting.com ngriffing@3545consulting.com

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11011 Richmond, Suite 600 | Houston, Texas 77042 | 713.789.3323 | www.3545consulting.com

Agenda

Introduction Topic 1 – Items to be Completed Prior to EOM Topic 2 – Month-end Checklist Topic 3 – Bank Reconciliation for the Month Topic 4 – Cash Triple Check

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11011 Richmond, Suite 600 | Houston, Texas 77042 | 713.789.3323 | www.3545consulting.com

Agenda

Topic 5 – Balance Cash Ledger to General Ledger Topic 6 – Generate Reports Topic 7 – Review P&L, Balance Sheet, Trial Balance & GL Topic 8 – Close the Month Conclusion / Q&A

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11011 Richmond, Suite 600 | Houston, Texas 77042 | 713.789.3323 | www.3545consulting.com

Items to be Completed Prior to EOM

  • Billing
  • Create Month End Folder in Windows Explorer
  • Save Bank Statements to the Month End Folder
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11011 Richmond, Suite 600 | Houston, Texas 77042 | 713.789.3323 | www.3545consulting.com

Month-end Checklist 

  • Bank Reconciliations for the Month
  • Cash Triple Check
  • Balance Cash Ledger to General Ledger
  • Generate Reports
  • Review P&L, Balance Sheet, Trial Balance & GL
  • Close the Month
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11011 Richmond, Suite 600 | Houston, Texas 77042 | 713.789.3323 | www.3545consulting.com

Bank Reconciliations for the Month 

  • Reconcile Bank Accounts
  • Save Bank Reconciliation Reports to the

Month End folder

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11011 Richmond, Suite 600 | Houston, Texas 77042 | 713.789.3323 | www.3545consulting.com

Cash Triple Check 

Be sure to save the General and Trust Bank Journals in the Month End Folder.

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11011 Richmond, Suite 600 | Houston, Texas 77042 | 713.789.3323 | www.3545consulting.com

Cash Triple Check 

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11011 Richmond, Suite 600 | Houston, Texas 77042 | 713.789.3323 | www.3545consulting.com

Cash Triple Check 

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11011 Richmond, Suite 600 | Houston, Texas 77042 | 713.789.3323 | www.3545consulting.com

Cash Triple Check 

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11011 Richmond, Suite 600 | Houston, Texas 77042 | 713.789.3323 | www.3545consulting.com

Cash Triple Check 

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11011 Richmond, Suite 600 | Houston, Texas 77042 | 713.789.3323 | www.3545consulting.com

Balance & Review Subsidiary Ledgers

  • Client Costs (Modified Cash)
  • Accounts Receivable (Accrual)
  • Accounts Payable (Accrual)
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11011 Richmond, Suite 600 | Houston, Texas 77042 | 713.789.3323 | www.3545consulting.com

Balance & Review Subsidiary Ledgers

Client Costs (Modified Cash)

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11011 Richmond, Suite 600 | Houston, Texas 77042 | 713.789.3323 | www.3545consulting.com

Balance & Review Subsidiary Ledgers

Client Costs (Modified Cash)

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11011 Richmond, Suite 600 | Houston, Texas 77042 | 713.789.3323 | www.3545consulting.com

Balance & Review Subsidiary Ledgers

The total of the Hard Costs should match the balance of the 1210 account on Modified Cash (Separating Hard and Soft Costs) Note: Some CPAs will say the 1210 should contain contingent costs only for tax purposes. By using the summary by area of practice you can determine the contingent expenses. This report is the support you will need either way.

Client Costs (Modified Cash)

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11011 Richmond, Suite 600 | Houston, Texas 77042 | 713.789.3323 | www.3545consulting.com

Balance & Review Subsidiary Ledgers

  • Accrual Basis – Reserve for Doubtful Accounts

−Balance total to Trial Balance

  • Modified Cash – Write-off Uncollectable

Balances (Can be written up if collected)

−Retain final report

Accounts Receivable

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11011 Richmond, Suite 600 | Houston, Texas 77042 | 713.789.3323 | www.3545consulting.com

Balance & Review Subsidiary Ledgers

Review the balances by Matter with aging. Have Responsible Lawyer make notes with regards to collections. On Accrual Basis balance to Trial Balance

Accounts Receivable

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11011 Richmond, Suite 600 | Houston, Texas 77042 | 713.789.3323 | www.3545consulting.com

Balance & Review Subsidiary Ledgers

  • Review for accuracy

Accounts Payable

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11011 Richmond, Suite 600 | Houston, Texas 77042 | 713.789.3323 | www.3545consulting.com

Generate Reports

  • Fees Collected Summary
  • Work In Progress
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11011 Richmond, Suite 600 | Houston, Texas 77042 | 713.789.3323 | www.3545consulting.com

The Fees Collected Summary provides a MTD and YTD analysis of the fees your firm

  • collects. The report summarizes the

fees by Fee Credit Lawyer and Responsible Lawyer. The report also compares YTD totals to the prior YTD totals and shows the percentage of change between the two years

Generate Reports

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11011 Richmond, Suite 600 | Houston, Texas 77042 | 713.789.3323 | www.3545consulting.com

Generate Reports

Review totals YTD by attorney and match to Income Statement Revenue.

Dec/31/2014

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11011 Richmond, Suite 600 | Houston, Texas 77042 | 713.789.3323 | www.3545consulting.com

Generate Reports

Review the Work in Progress report; it lists all unbilled fees and

  • expenses. Year-end is a good time to clear out old charges that

will not be billed. Accrual Accounting can show this total on Financial Statements.

12/31/2014 12/31/2014

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11011 Richmond, Suite 600 | Houston, Texas 77042 | 713.789.3323 | www.3545consulting.com

Review Work In Progress 

12/31/2014

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11011 Richmond, Suite 600 | Houston, Texas 77042 | 713.789.3323 | www.3545consulting.com

Review P&L, Balance Sheet, Trial Balance & GL 

P&L

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11011 Richmond, Suite 600 | Houston, Texas 77042 | 713.789.3323 | www.3545consulting.com

Review P&L, Balance Sheet, Trial Balance & GL 

Balance Sheet

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11011 Richmond, Suite 600 | Houston, Texas 77042 | 713.789.3323 | www.3545consulting.com

Review P&L, Balance Sheet, Trial Balance & GL 

Trial Balance

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11011 Richmond, Suite 600 | Houston, Texas 77042 | 713.789.3323 | www.3545consulting.com

Review P&L, Balance Sheet, Trial Balance & GL 

Check for missing or miss classified items.

General Ledger

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11011 Richmond, Suite 600 | Houston, Texas 77042 | 713.789.3323 | www.3545consulting.com

Review P&L, Balance Sheet and Trial Balance 

  • If your Trial Balance balances to 0
  • . . . And If you can verify all of the numbers on

the Balance Sheet

  • . . . And if your Revenue balances to subsidiary

ledger

  • . . . .then Net Income is correct
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11011 Richmond, Suite 600 | Houston, Texas 77042 | 713.789.3323 | www.3545consulting.com

Close the Month 

  • Print to PDF (Save to Month End Folder)

−Bank Statements & Reconciliation −General & Trust Bank Journal −Client Costs −Accounts Receivable −Accounts Payable −Fees Collected Summary

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11011 Richmond, Suite 600 | Houston, Texas 77042 | 713.789.3323 | www.3545consulting.com

Close the Month 

−WIP −Trial Balance −Balance Sheet −Income Statement −General Ledger with Detail −(Any additional information used to complete EOM)

  • Close the Month
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11011 Richmond, Suite 600 | Houston, Texas 77042 | 713.789.3323 | www.3545consulting.com

Proud Members of the 35-45 Consulting Group, LLC Serving our National and International Clients

Phone: 888-866-3545 www.3545consulting.com ngriffing@3545consulting.com

http://3545consulting.com/