I received a question from Mandy:
“I'm getting accounts to put through that have a HST amount and a GST amount. For example I recently received an account to put through for a criminal matter that was started a year before the HST.
As the work on the matter was pretty much 50/50 before & after HST . . . the assistant is calculating the disbursements & time spent on the matter based on when the work was done or the disbursement was incurred (before or after HST). I'm having difficulty with some of these files that do not meet the 90% rule.”
The solution:
Two invoices – one ending June 30, 2010 and one starting July 1st, 2010 to today.
OR
For one invoice - Run your client’s ledger to June 30, 2010. Then run the client’s ledger from July 1, 2010 to today. Compare totals on both ledgers to determine whether the 90% rule applies. If the 90% rule does not apply, calculate 5% GST on 1st ledger total, and 13% HST on second. Add together the GST and HST, for the total tax on the invoice, and then use this amount to adjust the tax on the billing window.
As always, I invite your comments and suggestions for future post topics. Next week – Bank Reconciliations.
Clyde
It often occurs that clients with multiple matters either request that you transfer entries or you ask the client for permission to transfer entries between matters. There are many reasons for this, but could include:
- your wanting to merge two matters after obtaining a court order to have them tried together.
- funds from a real estate sale matter transferred to a purchase matter.
- one matter may have been resolved, and you wish to transfer a few small expenses rather than issuing two separate invoices.
- there could be settlement funds or an unused retainer balance in one matter, that could be applied to accounts receivable in another matter.
To transfer expenses from one matter to another – Data Entry – Transfer Expenses – enter matter that has the expenses and then the matter you wish to transfer them to. By default, all expenses will be listed - to shorten the list, choose a start date – then click the Select button. All expenses within the date range will appear and be selected for transfer. To stop one or two expenses from being transferred, click to remove the “X” – then click “Transfer”.
To transfer trust funds, Data Entry – Trust Bank – Matter to Matter Transfer or Quick Step Trust Tab – Matter to Matter Transfer - enter the matter that has the funds and then the matter you wish to transfer the funds to – the date – the amount – an explanation – OK.
To split trust funds when entering a receipt, just enter the two matters and their respective amounts on the trust receipt.
As always, I invite your comments and suggestions for future posting topics. Next week – HST on long-term billing.
Clyde
Archiving matters is a must if you want to reduce the time it takes to generate and print reports. Contrary to popular belief, this does nothing to change the matter’s information. When you archive matters, you also set its destroy date, which is the date you will shred the client’s file. But the archived matter is available and can be reopened if needed (please note that there have been some issues with reopening matters archived in older versions of PCLaw – always print/save copies of the client ledger).
The archiving tool can also be used to destroy the matter information, which will completely remove it from PCLaw.
Pre-conditions – A matter you want to archive:
• cannot have unbilled disbursements
• cannot have remaining trust funds
• cannot have a general retainer balance
• cannot have an outstanding A/R balance
• cannot have activity in an open month.
You should also set a default destroy date – System Settings – Matter – “Files Can Be Destroyed After __ Years”. LawPRO Magazine had an article on file retention in their December 2010 issue. Here is a link to the article:
How long should I keep my closed files?
http://www.practicepro.ca/LAWPROMag/file_retention.pdf
To archive – File – Matter – Close Matter – enter matter number – make sure “Archive Name/Address and Accounting Information” is selected - OK.
Bulk Archiving - Do not enter a matter number, Achive all matters before - you choose at date - OK. PCLaw will archive all matters that meet the conditions set out above.
To reopen a matter – File – Matter – Closed Matter Register – select the matter – OK.
As always, I invite your comments and suggestions for future posting topics. Next week – Transfers Between Matters.
Clyde
My July 3rd posting was on why I provide my bookkeeping services virtually. Richard from Michigan suggested that I could further explain what I do and how the whole virtual legal bookkeeping process works.
Each month, I generally do the bank reconciliations (statements emailed or faxed to me), plus the remittances to the government for payroll taxes and HST (consumption tax). If something on the bank statement does not appear correct, I simply email to ask for clarification / explanation; just as I would have to ask for an explanation if I was on-site.
I also assist with law practice compliance issues. The law society in Ontario requires specific bookkeeping procedures, records, forms, etc. I review practice / office procedures, help fill out forms, look for any bookkeeping errors made by staff, and advise and correct as needed.
I maintain the General Ledger in PCLaw, which has a tendency to gather posting errors that cause sub-ledger imbalances (i.e. bank ledger balance is different from the amount shown on the balance sheet). With the exception of partial postings which require the involvement of a PCLaw engineer, I can correct most of the other errors.
I can print or save any reports as are needed or requested. I can assist with billing disputes and other accounts receivable issues. And, I can also assist with overall small business advise in respect to running a law practice.
As always, I invite your comments and suggestions for future post topics. Next week – Archiving.
Clyde
