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Notes On Finance And The Firm

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Finance and the Firm Introduction there has been great debate over whether the law profession should be viewed strictly as profession or as a business. Whatever your opinion, there’s no doubt that the financial condition of the firm determines its success. Behind every successful company is a successful growth/financial plan. A well detailed and thorough financial plan is the difference between a thriving business and one that fails. The financial management of a law firm is unique in that it is governed by ABA Model Rules. Model Rule 1.15, 5.4(d) , and 1.17. Break down rules here. There are many elements that go into a sound financial planning and management. Financial management involves the process of budgeting and financial …show more content…

Accounting within the Law Office It comes to accounting, law firms have special needs because of rules that govern the legal profession are unique to the profession. Lawyers are personally responsible for the adequacy of the firm’s accounting and are naturally concerned that all systems functions we can produce all necessary records. (cite pg 39 client accounting for the law office). ABA model rule 5.4 establishes that lawyers independence of professional judgment and actions must be supported by the way in which management and financial decisions are controlled within the practice. Partners are responsible for the operation of professional practice according to ABA model rule 5.1. Large firms cannot afford to have their partners and senior lawyers engaged in full time administrative management of practice so, they delegate some administrative duties to senior nonlawyers. Nevertheless, lawyer still have the responsibility for the practice according to ABA model rule 5.3. Comes to records of the firm, a secure place must be decided to store information and that information must be kept for some time to the regulation, professional accountability requirements, or firm policy. Confidentiality the principle of confidentiality of client information is explained in ABA model rule 1.6, which extends to nonlawyer staff. Objectives of Law Firm Financial Statements The primary objective of law firm

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