Legal Financial Statement

A legal financial statement is a record of income and expense and/or assets and liabilities pertaining to a legal firm. This record is a very important document as this will help the firm to understand its profit and/or loss and to decide future strategies accordingly. Often, a separate accountant is kept for this purpose, in case of large legal firms while the staff itself maintains such statement in case of smaller firms.

Whatever be the case, utmost care should be taken for its compilation so as to make it free of errors. The statement should be a detailed breakdown of the various financial aspects of the legal organization and not just a summarized overview of income and expenditure. Generally, these statements are prepared and published on a yearly basis.

Sample Legal Financial Statement

The below is the Financial Statement for ABC Legal Consultancy firm for the year ending on 31st March, 2012

Income 

Source of Income

Unit Price (in $)

(per lawyer for 1 year)

No. of units

Total income (in $)

Lawyer – Tier I 10000 5 50000
Lawyer – Tier II 5000 10 50000
Lawyer – Tier III 2500 10 25000
Bonus NA NA 10000
  Total 135000

 Expense 

Type of Expense

Unit Cost

(per annum)

No. of Unit

 

Total Amount

 

Lawyer – Tier I 5000 5 25000
Lawyer – Tier II 3000 10 30000
Lawyer – Tier III 2000 10 20000
Stationeries 10 10 100
Bank Expense 5 50 250
Maintenance NA NA 500
Advertising NA NA 200
Contributions NA NA 100
Repairs NA NA 100
Other NA NA 100
  Total 86350

Assets 

Category

Amount (in $)

Client Account 1 10000
Client Account 2 8000
Client Account 3 2000
Accounts Receivable

 

5000
Fixed Assets 5000
  Total 30000

 Liabilities 

Category

Amount (in $)

Accounts Payable 7000
Credit Cards 8000
Current Liability 2000
Total Equity -5000
  Total 12000