Nominal Ledgers

Nominal Ledgers

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 of 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.

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Nominal ledgers are individual ledgers for things like salaries, rent & rates, software charges and drawings. For firms with multiple offices, you can choose to have either separate sets of nominal ledgers for each branch, or one consolidated list for the practice. In addition, you may choose to attach nominal ledgers to particular areas of law, so rather than just recording salaries for the practice, for example, you could choose to have different salaries nominals for staff in different departments. This way of working with cost centres can provide extremely detailed reporting and analysis, not just for the firm as a whole but also to help you assess the profitability of your various areas of legal work.

Nominal Ledger postings are very straightforward. There are specific posting routines for recording payments directly to or from your office bank, your credit card or your petty cash tin. In addition, you can record journal transfers between nominal ledgers, purchase ledger invoices received and VAT adjustments.

As with all posting routines, the full ledger is available for viewing whilst you are posting, with the projected new balance calculated for you at the bottom of the screen. In fact, it is not just the current year’s nominal entries that are available for viewing, using a simple drop down list, you can choose to look back at the financial entries for any previous year too. A significant advantage after year end when your ledger balances have cleared down and you are asked how much was paid for something last year!