MLBKS Ontario PCLaw Bookkeeping: A bi-weekly blog written especially for small firms and solo-lawyers practicing in Ontario, and their bookkeepers. While some topics will be of general interest, the target audience are those who use PCLaw on a regular basis. The focus will be the practical use of PCLaw, especially in relation to the Law Society of Upper Canada's Bookkeeping Guide, trust transactions, and spot audits. Your host: Clyde McDonald - Muskoka Legal Bookkeeping Services
Sunday, December 18, 2011
The 7 Most Common PCLaw Errors – Simple posting errors
Simple posting errors are not accounting errors (posting to the wrong account), which would be incorrect no matter what program you are using. The posting errors I am writing about are using the wrong method in PCLaw to post your entry.
Here are just a few examples:
- Using a firm receipt to post to Accounts Receivable (1200)
- I have seen a general cheque where the explanation was something like postage, and the G/L account used was 1000 (I guess the thought was to deduct the postage from the bank)
- using a G/L adjustment to post to a control account (General banks and HST can be posted to, as long as you check the “appear on journal” box)
- using Receive Payment to receive more funds than the amount owing - creates a general retainer – instead, deposit into trust and then immediately pay the receivable
- using Expense Recovery to post hard cost instead of using a bank account (however, Expense Recovery can be used to recover for an old bank entry where the matter was omitted)
Just locate the error, and remove it, or do a reversing entry.
As always, I invite your comments and suggestions for future post topics. Next week – Trust Errors.
Clyde
Sunday, December 11, 2011
The 7 Most Common PCLaw Errors
December 18, 2011
I provide legal bookkeeping services to clients on a monthly basis, however, the vast majority of my income comes from error correction services. I have some clients that do all of their own bookkeeping, and retain my services just to correct errors and monitor for LSUC compliance issues.
I think the best way to start this next series of postings is to list the types of errors commonly found in PCLaw. Starting in January, I will discuss each of errors in more depth.
User Errors:
If you know of another type of error that you would like to see added to the discussion, please email me. Maybe others are having the same issue, so I would be happy to assist. If I recognize the problem you are having, I will reply to your email with a possible solution.
As always, I invite your comments and suggestions for future post topics. Next week – I am off for the holidays – next posting: January 8th, 2012.
Clyde
I provide legal bookkeeping services to clients on a monthly basis, however, the vast majority of my income comes from error correction services. I have some clients that do all of their own bookkeeping, and retain my services just to correct errors and monitor for LSUC compliance issues.
I think the best way to start this next series of postings is to list the types of errors commonly found in PCLaw. Starting in January, I will discuss each of errors in more depth.
User Errors:
- Simple posting error
- Trust errors (multiple matters/trust accounts)
- Accounts Receivable errors (method/multiple invoices/matters)
- Posting error (PCLaw generated)
- Partial posting error
- Read/write error
- Hidden error
If you know of another type of error that you would like to see added to the discussion, please email me. Maybe others are having the same issue, so I would be happy to assist. If I recognize the problem you are having, I will reply to your email with a possible solution.
As always, I invite your comments and suggestions for future post topics. Next week – I am off for the holidays – next posting: January 8th, 2012.
Clyde
Sunday, December 4, 2011
PCLaw vs. Cloud based bookkeeping
December 4, 2011
For
the last few weeks, the LinkedIn Legal IT Network has been hosting a
rather a heated debate on Cloud services. Many law firms have embraced
or are considering cloud technology as part of their practice
management. Thus far, the LSUC and/or LawPRO have placed no restrictions
on law office cloud based solutions. Instead, they have opted to place
the onus on you to conduct your own due diligence. The main issues are
client confidentiality, backup, and timely accessibility.
It
is up to you to investigate your Cloud service provider, to ensure they
have adequate security measures to protect your clients’ privacy. You
also need to be aware of other less obvious issues like “The Patriot
Act”, if the servers are located in the USA. One Bar association article
recommend amending the provider’s standard service agreement, to
specify the data you are storing and their duty to protect it.
“Before attorneys begins placing sensitive
information on the Internet, they should draft language
into the agreement that specifies the types of information that are protected under the provider’s security agreement. This may include, but not be limited to, data from a third party, data drawn from both electronic and non-electronic formats, metadata, trade secrets, personally identifiable information,
and intellectual property. Attorneys should carefully
formulate this language so it accurately covers all of the categories of information contained in their records.”
And,
how will you and your client be compensated if there is a breach in
security? Think it cannot happen? Breaches so far in 2011: Sony, the
data-security firm RSA, Lockheed Martin, the email wholesaler Epsilon,
the Fox broadcast network, NASA, PBS, the European Space Agency, the
FBI, the British and French treasuries, and insurance giant Citigroup.
Many
Cloud providers offer different service packages, varying the level of
service provided, performance guarantees, and compensation levels. The
cheapest packages usually deny any and all liability for the Cloud
provider, leaving you financially liable to your client with no
third-party indemnity.
Does
the Cloud provider have sufficient backup procedures to safeguard your
data. Accessibility to your own data can be affected by power outages,
system crashes, and maintenance at your Cloud provider’s location. Is
their support centre well staffed and able to assist you if you have a
problem? Also of concern: is the Cloud provider a viable company and
what happens to your data in the event of bankruptcy?
For
Cloud based bookkeeping, most of the solutions currently offered are
not true accounting programs. They allow you to make bookkeeping
entries, but the reconciliation and reporting functions are extremely
limited. You end up having to do this things manually or in an Excel
spreadsheet, so any perceived convenience or savings are lost due to
time wasted.
The
main issue here is accessibility. The LSUC requires you to be able to
produce your accounting records on demand. If the Cloud server is down,
for whatever reason, you have a big problem. And If the Cloud server is
down on the day of your LSUC spot audit, you have a crisis.
Personally,
I see Cloud computing as a very useful tool for large firms. This
allows all employees to work as a team, by having access to all files
from any location. Another big goal of Cloud seems to be sharing with
clients (dropbox, etc.).
But
for a small firm or solo-practitioner, the effort seems rather
pointless. You and your staff can already use remote programs like
LogMeIn to gain access to your data from anywhere. And as a solo, there
is not much need for such widespread sharing, as your collaborative
network is small.
Are
you a solo or small firm using the Cloud? I would be interested in any
comments on your experience with Cloud based solutions. Any issues with
the transition? How has your staff adapted? Any training issues? Are you
happy and was it worth the investment?
As always, I invite your comments and suggestions for future post topics. Next week – PCLaw Errors.
Clyde
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