Time, Billing and Accounting FAQ
Table of Contents
- Time & Billing
- Accounts Payable
- General Ledger
- Trust Accounting
- Payroll
- Bank Reconciliation Troubleshooting
Time & Billing
- How do rate levels work?
- What is a case code?
- What is a time ticket code?
- How does
the system handle sales tax on fees and costs?
- What is an administrative cost?
- How do retainers work?
- How do I do write-offs?
- What
is a write down time ticket?
-
What
is the seniority field used for in timekeeper maintenance?
- Why
is there a default trust account field on the client screen?
- What
are the billing remarks used for on the matter maintenance screen?
- How does the minimum
fee billing mode work?
- What is a flat rate time ticket?
- How do I change a number ID/matter
number?
- What is a client-billing summary?
- What is an Interim statement?
- How do
I handle a bounced check, both operating and trust?
- How
does the default rate on the timekeeper maintenance screen work?
- What
is the difference between a hard cost and a soft cost?
- What is a Letter of Protection?
- How do
I bill for additional fees on a flat fee case?
- What
is the difference between the address on the name screen and the address
on the matter screen?
- What type of mailing labels
do I buy?
- When
viewing a matter billing activity, what is the significance of the billing status?
- Where
do I go to view time tickets once they have been posted?
- Does
posting costs and adjustments affect the general ledger?
- When
is it OK to delete entries from a matter billing activity?
- What
is the default time ticket type on the time ticket input screen?
- What
increment does the hours field on the time ticket screen follow?
- What
date should I use as the posting date when applying a client payment?
- When
selecting bills to be printed what impact does the bills to include option
have?
- When
printing and posting actual bills what impact do the following dates have...
a) Date of Bill, b) Posting Date, c) Start and End dates?
- What does the option
POST ON TICKET DATE do?
- What
is the difference between unique and non-unique matter numbers?
How do rate levels work?
AbacusLaw is very flexible where rates are concerned. You may charge one rate per
timekeeper, one rate per matter, different rates for same timekeeper for different
client/matters and then some! A full description of how to setup your rates
is included in our on-line manual in chapter 4.
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What is a case code?
It is a code assigned to each matter, grouping the firm's work by type of law, ( for example DOM = Dissolution of Marriage, FAM = Family Law, PI = Personal Injury). You can view these as revenue streams and keep track of costs in the same way to see what "type" of law is most profitable.* If you have not entered any case codes (in the Setup/Codes menu in Abacus Law ), the system automatically asks you if you would like to use the default list. Some reports subtotal or breakout by case codes.
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What is a time ticket code?
A time ticket code is a code representing frequently used phrases where the
time ticket text is concerned. One of the most time consuming tasks of legal
billing is time entry. If used thoughtfully, you can save a vast amount of time
in the entry of time tickets. Example codes might be CWC - Conference with client,
LTC - Letter to client. You can create entire paragraphs with one or more codes.
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How does
the system handle sales tax on fees and costs?
AbacusLaw assigns the global sales tax rate under Setup/Company Preferences/Configuration Tab. If a matter needs to overwrite the global sales tax rate for fees or costs, simply go to the Matter Maintenance screen for that matter and adjust the Rates tab. Simultaneously you assign a tax status (taxable or non-taxable) to each Case Code for fee sales tax, and to each Client Expense Code for cost sales tax. If sales tax for fees varies due to the type of work being done, you can even charge sales tax on a time ticket by time ticket basis. Just be sure the option to show tax status on the time ticket screen is turned on in Workstation Options.
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What is an administrative cost?
If you do not want to keep track of the soft costs incurred on a matter by matter basis, you can opt for a percentage of the current fees to be charged instead. The global admin cost is setup under Setup/Company Preferences/Configuration Tab. You can also overwrite the global rate by going to the Matter Maintenance screen for a particular matter and adjust the Rates tab, which allows you to an admin costs to some matters and not others. The cost is calculated when you print the actual bill. It is a percentage of the current fees on the bill, including fee debits and credits.
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How do retainers work?
There are 2 types of retainers in AbacusLaw. One is a retainer you want refreshed or billed every billing period and the other is a manual retainer. For the "monthly/minimum retainer, enter the amount you want refreshed every month on the matter screen. Enter the manual retainer as the unbilled Client Expense Code RET, in Cost & Adjustments under the Billing drop down menu. You can use the two in conjunction. Unbilled retainers (manual) are deleted when the bill they appear on is posted.
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How do I do write-offs?
There are 2 types of write-offs in AbacusLaw. The Complete Matter Write-off is used mainly for zeroing out of client balances you cannot collect. The second type is the individual item write-off. The Complete Matter Write-off calculates the total due for fees, costs, taxes and late charges and puts an entry on the Matter Billing Activity and the Write-off report for each item written off. Write-offs can be debits or credits. The result is a zero balance Matter Billing Activity . AbacusLaw will not let you delete a matter with a balance. An individual write-off is one posted via Costs & Adjustment with the write-off box checked. Each write-off posted via Costs & Adjustments is put on the write-off report. You can keep track of write-offs as a total of all cost s or on Client Expense Code by Client Expense Code basis. To do this you need to set up a parallel set of Client Expense Codes for each cost. The system comes with certain write off codes already setup . They are WOF (write off fees), WOH (write off hard costs), WOS (write off soft costs), WOT (write off taxes), WOL (write off late charges). These codes are used by the "complete matter write off" procedure and can be used transactionally as well.
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What is a write down time ticket?
When you modify an existing time ticket and reduce the hours and then click
the save button, the system asks you if you want to create a write down time
ticket. If you want to keep track of non-billable work, overstated hours, etc.,
you should answer yes to this question. A second time ticket is created for
the difference in the hours reduced and categorized as a non-billable ticket
with text appended indicating this is the secondary ticket. These tickets never
appear on actual client bills. They do come out on certain reports dealing with
time and productivity. This can be a good management tool!
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What
is the seniority field used for in timekeeper maintenance?
It is used to sort certain timekeeper-based reports to ensure the SENIOR most
partner is listed first. These reports are productivity and profitability based
reports.
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Why
is there a default trust account field on the matter screen?
This is meant to be a time saver. Usually firms will keep a matter's trust money in one physical trust account. If that is the case, you can enter that chart of account number in this field on the matter maintenance screen. Each time you enter a trust deposit or request a trust check for that matter, the appropriate account number will be auto-filled. This does NOT mean you don't have to check your own work/posting reports, miscoding happens all the time!
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What
are the billing remarks used for on the matter maintenance screen?
The billing remarks are an additional field you can put in the header section of our actual bills. They can contain policy/claim numbers, accounts numbers, file numbers etc. Anything you need to convey to the recipient hopefully to expedite payment. This field is on the matter maintenance screen , on the Billing tab . If there are no remarks, no additional information will appear on the bill.
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How does the minimum
fee billing mode work?
You set up the matter with the billing mode of minimum fee, specify the pre-arranged
minimum fee, and enter the hourly rates to keep track of hours to know when
to start charging again. Another words, AbacusLaw keeps track of the value of the
hours and when the minimum fee is reached (even mid time ticket) additional
fees are calculated for each time ticket. You cannot re-set/re-bill a minimum
fee matter, it will not know to start re-tracking from zero. If you need to
do that, change the matter to an hourly billing mode and manually keep track
using Flat Rate tickets to manipulate when charging is to return to regular
hourly rates.
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What is a flat rate time ticket?
A flat rate time ticket can ONLY be used in conjunction with the hourly billing
mode. It is a ticket that does not charge by the hour but charges from an amount
field you enter on each time ticket. Remember that amount can be 0.00 for whatever
your needs might be. If you have a flat rate fee for certain fee type services
this is the best way to enter it.
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How do I change a name ID/ matter number?
This process is cleanest when done before any postings to that name id/ matter have taken place. To make your changes go into Abacus Law and change the necessary numbers there. The Abacus Accounting System will automatically transfer the Matter Billing Activity, Matter Trust Activity and Unbilled Time Tickets. That's it!
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What is a Combined Matters Cover Page ?
This is for clients with more than one matter open with your firm at a time. . It is like a cover/summary sheet for all that client's matters billed this period. Once you have printed all your actual bills you can print your client combined matters cover pages . The system knows which matters to include based on who was billed this period, found in the posting file. ( Be sure before printing your current bills, that all previous bills have been posted .). It is a good way to attempt to get payment in full from your client and avoid confusion.
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What is an Interim statement?
It is another tool to try and get prompt payments from your clients. Some firms have found that sending interim statements half way through the billing period encourages more prompt payments. The interim statement does NOT include any new charges; it is only a balance forward type bill.
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How do I handle a bounced check, both in operating and trust?
There are three places you can post a deposit that would be affected by a bounced check. 1) Payments Received , 2) Post a trust deposit, and 3) General journal cash receipt entry. For a client payment going into operating , you would apply a negative payment if a clients check bounced. For a trust deposit that bounced you would apply a negative deposit. For a journal entry, reverse the journal entry. If the bounced check was a result of one of the first two items, remember to charge the client for any fees incurred. You can do that via Costs & Adjustments.
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How
does the default rate on the timekeeper maintenance screen work?
If you have one rate you predominately charge to your clients, enter that on
the timekeeper maintenance screen. If the system finds a time ticket whose timekeeper's
rate on the matter screen is zero, it uses the default rate for that timekeeper
kept in the timekeeper maintenance area. This aids in rate flexibility.
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What
is the difference between a hard cost and a soft cost?
A hard cost is one you produce a check to cover; soft costs are intangibles incurred on behalf of the client. A hard cost would be for things like filing fees, court reporters, corporate kits etc. Soft costs are things like postage, long distance telephone calls, facsimiles, photocopies etc. There are different tax treatments for hard vs. soft costs by the IRS.
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What is a Letter of Protection?
Letters of Protection only apply to contingent matters. There are a group of costs that law firms are required to withhold from the client's settlement amount to be used to pay bills not advanced by the firm but still incurred by the client. These costs are grouped into their own section on the settlement statement. This ensures these billed are paid.
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How do I bill
for additional fees on a flat fee case?
As with everything else, there is more than one way to do this depending on your needs. The most popular way is to change the billing mode on the matter screen (from flat fee to hourly) and then use time tickets both billable and flat rate to generate your additional fees. If however, you want to simply bill an additional FLAT FEE, you can change the non-hourly billing status on the matter maintenance screen from billed to unbilled and enter in the new flat fee.
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What is the difference between the address on the Abacus Law Name screen and the address on the Matter screen in Abacus Accounting ?
The address on the Matter screen is the one used on the actual bills mailed to clients . The address on the Abacus Law Name screen is used to auto-fill to each new matter for that client and to allow massive address changes across matters when necessary. It also allows you to have two (2) addresses in the header section of a bill when requested. If you check the two addresses on the bill check box on the address tab in matter maintenance, you will get the address from the Name screen and the address from the Matter screen. The Name screen address is first.
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What type of mailing labels
do I buy?
One inch by four inch labels. Any brand will do. You can order label pages
with one or two columns of labels.
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When viewing a Matter Billing Activity , what is the significance of the billing status?
All billed items have appeared on an actual bill posted or are balance forward
entries. These entries, plus unbilled payments, determine a client's accounts
receivable balance. All unbilled payments are payments received since the last
bill was posted and will appear in the current payments received section of
the next bill. Unbilled costs and fee/sales tax/late charge adjustments are
included on the next statement. Billed items have been charged and shown to
a client on a bill, unbilled items have not.
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Where
do I go to view time tickets once they have been posted?
They are available on the matter history report found on the Matter drop down menu. This report/bill is often used for fee affidavit purposes. You can also go to the Matter's Linked Documents tab in Abacus Law and find all posted bills there if you have turned on the Save Bills to .pdf option on the Configuration Tax in Company Preferences, under Setup in Abacus Accounting.
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Does the posting of Costs & Adjustments affect the general ledger?
No, never! The only thing that is updated is the Matter Billing Activity. If the write-off indicator is checked , the write off report is updated as well.
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When is it OK to delete entries from the Matter Billing Activity ?
If an entry was posted as a cost & adjustment and it is still unbilled , it is okay to delete the item from the Matter Billing Activity because it is not updated anywhere else in Abacus Accounting. . Another time you can delete entries is when you are cleaning up mistakes. Let's say you posted a client payment and then determined it was posted incorrectly so you applied a negative payment to clean up the problem and then re-posted the payment correctly. There is no harm is deleting the in and out entries so as not to confuse yourself later. In ALL other circumstances, you should do an adjusting entry to rectify the problem.
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What
is the default time ticket type on the time ticket input screen?
The default is the last type of time ticket you used. It is remembered from
one ticket entered to the next.
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What increment does the hours field on the time ticket screen follow?
Abacus Accounting increments time tickets in tenths of hours (i.e. 6 minutes
= .1 hours, 30 minutes = .5 hours, etc.). Abacus Law shows the actual number
of minutes.
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What
date should I use as the posting date when applying a client payment?
You should use the date you take the deposit to the bank. This will be VERY
helpful at reconciliation time. Be sure that when you take a deposit to the
bank you have matching posting report to ensure you will be in balance at the
end of the month. Do this for each account you have at the bank. If you deposit
at the bank twice in one day you should post twice in one day within Abacus Accounting.
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When
selecting bills to be printed what impact does the bills to include option have?
The ALL option is self-explanatory; all bills requested would come out with the exception of closed and on hold matters. If you choose non-zero then all matters selected for billing that have a balance (positive or negative) will have a bill printed for them with the exception of closed and on hold matters. Finally, if you select unbilled activity then all matters selected for billing that have some type of new activity will have a bill printed for then with the exception of closed and on hold matters. Unbilled activity consists of one or more of the following: 1) A time ticket, 2) a new payment, 3) an unbilled cost or adjustment , and 4) an item on the matter trust activity (when trust recap is included on bills). If you select a matter for billing individually then even if the matter is closed or on hold a bill will print.
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When
printing and posting actual bills what impact do the following dates have...
a) Date of Bill, b) Posting Date, c) Start and End dates?
A) Date of Bill - this is used to update the matter billing activity for new fees, taxes and late charges. The billing report uses this date. The unpaid invoice report uses this date as well . The accounts receivable aging report uses the date of the bill to age the receivable. B) Posting Date - This is used to update the general ledger (only used if you are using the accrual accounting method). Also, for the productivity reports the posting date is used. It is suggested that you use the last date of the billing period as the posting date regardless of the date of the bill. C) Start and End dates - These dates are used to determine what information should be included on the bill for the following items: 1) time tickets, 2) unbilled costs, 3) unbilled payments, 4) unbilled fee credits/debits, 5) manual sales tax charges, 6) manual late charges, and 7) trust recap transactions. It is suggested that you leave the default start data of 01/01/1900 to ensure all unbilled entries are included on a bill regardless of how old they are.
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What does the option
POST ON TICKET DATE do?
If you want your productivity reports updated based on the time ticket's actual date instead of the posting date , you should set this option in Setup/Company Preferences/Configuration tab in Abacus Accounting. . Use this feature only if you have special reporting needs or you will have to go back and re-print previous months reports each time you post bills if tickets for earlier dates are included on that bill.
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What
is the difference between unique and non-unique matter numbers?
If each matter that is entered in your system has a unique number and NO two
matters are the same then you can set your system up as using unique matters
numbers. If however, you have the same matters numbers across clients then you
must answer no to this system setup question. For example if you have a client
whose number is SMITH has a matter number 001 and a matter 002, and you also
have a client JONES who has a matter 001 then you DO NOT have unique matter
numbers. However, if you had a client whose number is SMITH and who has a matter
9901234 and a matters 9901235 and you also have a client JONES who has a matter
9901236 etc. etc. etc. then you probably do have unique matters numbers. If
you have unique matter numbers the system will not ask for you that matter's
client number when entering client adjustment, time tickets, trust deposits
etc. etc. etc. It is a time saver! It also makes it so you do not have to remember
client numbers as well as matter numbers.
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