System Design: Financial Workflows

#accounting #billing #core-team-discussion #finance #operations #system-design #workflow

System Design: Financial Workflows

Hey guys,

This note outlines the step-by-step processes for managing the firm's finances efficiently and accurately, from tracking time to collecting payment and managing client funds. Clear financial workflows are essential for profitability and compliance.

Purpose:

To design standardized workflows for time recording, billing, collections, and client account management.
To ensure accuracy, timeliness, and efficiency in all financial processes.
To maintain compliance with Bar Council rules regarding client funds.
To provide clear procedures for everyone involved in financial tasks.

How to Use This Note:

Map Workflows: Outline the ideal sequence of steps for each key financial process.
Assign Roles: Clarify who is responsible for each step (Lawyers, Admin/Leon, Accounts/Bookkeeper?).
Define Rules/Policies: Establish clear rules (e.g., time entry deadlines, collection triggers).
Discuss & Document: Refine the workflows in Discord and finalize the agreed procedures here.

Designing Our Financial Workflows

Let's define the ideal process for each area:

Financial Workflow	Key Steps / Procedures / Rules to Define	Responsibility?	Tools/Templates?
1. Time Recording	How/where is time recorded? Level of detail required? Deadline for submitting time entries? Process for reviewing/approving time?	Lawyers	Time Tracking Software/Method
2. Disbursement Tracking	How are disbursements recorded and linked to matters? Process for submitting disbursement claims/receipts? Approval process?	All / Admin	Expense Claim Form?
3. Billing / Invoicing	Frequency of billing? Process for generating draft bills? Review/approval process for bills? Standard invoice format/template? Process for sending invoices to clients?	Admin/Accounts/Lawyer	Billing Software, Invoice Template
4. Collections	Payment terms? Process for tracking overdue invoices? Standard sequence/timing for reminders and follow-up actions? Policy for escalating serious non-payment?	Admin/Accounts	Reminder Templates, Aging Report
5. Client Account Mgmt	Procedure for receiving client funds? Process for payments out of client account (authorization, documentation)? Bank reconciliation process? Adherence to specific Bar Council Rules?	Accounts/Lawyer	Client Ledger, Compliance Checklist
6. Expense Claims (Internal)	Process for submitting claims for firm expenses (non-disbursement)? Approval workflow? Reimbursement schedule?	All / Admin	Expense Claim Form
7. Financial Reporting	What key reports are needed regularly (P&L, Balance Sheet, AR Aging)? Who generates them? How often? Who reviews them?	Accounts / Partners	Accounting Software

➡️ Let's design our core financial workflows in Discord: #[Link to Channel #40-3-financial-workflows]

(Placeholder for Final System Design)

Summary of Key Financial Workflows:

Time Recording Process:

Billing Process:

Collections Process:

Client Account Procedures:

Internal Expense Claim Process:

Financial Reporting Schedule:

Clear financial processes are vital for the firm's health and smooth operation.