Financial Knowledge Management and the Small Law Firm

A law firm is a knowledge-based business, so managing knowledge is about managing the law practice – enabling lawyers to work efficiently, confidently and profitably. So lawyers need to spend their valuable time resource focused on doing just that – and doing it well.  To free up more time to allocate to knowledge management requires that other systems and streamlined workflows are automated and in place. And that’s where a fully functional financial management system can make a world of difference. To this end, I would like to get to the heart of the matter with a customized, integrated financial management system with Zoho Books.

Zoho Books for Small Law Firms

So here’s a brief overview of how Zoho Books can help take care of the financial knowledge management needs of the small  law firm in an effective and efficient way. At the outset, it pays to focus on setting up the books to get meaningful, decision-making information from your reports. For starters, ensure that the following Set-up tasks are done properly.

Organization Settings:

Set up the organizational profile using the various sub-headings under the Settings tab.

Chart of Accounts:

Create a relevant chart of accounts with all the Balance Sheet and Income Statement accounts to monitor the business performance.


Set up clients as contacts with all pertinent profile information completed.


Create the various types of legal services in the Items module as Items. Enter the amount you would charge in the Sales information. If expenses are incurred for a service on behalf of your client, enter the purchase information as well. Later, while recording the expense, there is an option to mark it as billable for invoicing.


Set up Timesheets and Projects to track time and matters as work is being performed for the each client. Create Retainer Invoices to track the Trust Funds. Later, apply these Trust Funds to the invoices sent to clients. If clients are charged based on time spent or based on the tasks done, then create and manage them using the Timesheet module. Create individual projects for clients and manage them separately.


Generate reports for the retainer invoices and also view specific reports for the projects in the Timesheet module. Track your projects (matters or cases) using the Timesheet module. See the complete profile of a project and create customized reports for a project in the Reports module.

Want to ensure all your business accounting needs are met? We can help you get setup in Zoho Books so you can focus on executing on client matters. Contact us to get a free complimentary consultation and get started with  a free  trial of Zoho Books.