As well as running the accounts of your client files, all practices need to manage the accounts of their business.
With Insight Legal, the nominal ledgers for dealing with both your income and expenditure are managed alongside your client files.
For firms moving to Insight Legal with a data conversion from your existing accounts system, we aim to migrate all your existing nominal ledger codes, so you will not have to get used to a different set accounts – which can be reassuring, particularly if you move whilst part way through your financial year. For firms starting from scratch on Insight Legal, you have the flexibility of having your own list of nominal ledgers without having to work to our pre-designated structure.
The function of the purchase ledger is to enable firms not just to record their expenses when payments are made, but also to record their liabilities. This means that when you receive an invoice for, say, your telephone bill or some Counsel’s fees, you can still record it even though it is not yet due for payment.
The purchase ledger works alongside both the nominal ledgers and the client ledgers, so whether the invoice you have received is for a disbursement or one of your own expenses, it can still be posted.
Chart of Accounts
Integral to the nominal ledger structure is your Chart of Accounts. The chart of accounts controls how your nominal ledgers are organised, so for example you will have different sections for your profit & loss and balance sheet, then within those you will have different ranges again such as office expenses, motoring expenses and fixed assets.
Profit & Loss and Balance Sheet
There are many reports in the Insight Legal system dealing with nominal ledgers, but amongst the most widely used are the Profit & Loss and Balance Sheet.
As you might expect, Insight Legal feeds information directly on to these reports from the various different nominal ledgers and control accounts. This means that, at any time, you can get an up to date analysis of your firm’s day to day performance as well as the assets and liabilities that make up the balance sheet.
For any practice registered for VAT, producing your quarterly or annual returns is a vital part of your business process.
Posting entries with a VAT element to them is very straightforward. You can maintain a list of all required VAT rates in the system, so it is as simple as selecting the required VAT rate from a drop down list as you post. You can also add to those lists at any time, so if the VAT rate changes then you can continue to work seamlessly without having to wait for updates from us.