Software - General Ledger / Accounts Payable

LSSe64 includes powerful General Ledger and Accounts Payable components that are fully integrated with the LSSe64 Client Accounting system. All of these components are designed from the ground up to seamlessly work together in order to provide our clients with the highest level of efficiency and accuracy in the management of their financial data. Below are just a few highlights of the LSSe64 General Ledger and Accounts Payable components.

Full integration with Client Accounting

For any Client Accounting transaction that is entered, updated or deleted, LSS automatically creates the appropriate journal entries in the General Ledger system. This includes time entries, costs, payments, write-downs, trust and more. When client payments are posted in Client Accounting, the system also creates the appropriate “deposit” in the G/L bank reconciliation module.

Specific interface details are largely firm-defined, providing a great deal of flexibility in the way that G/L transactions are created. For example, a firm may choose to maintain their G/L accounts receivable account(s) by office or their G/L fee income account by individual timekeeper. LSS generates the G/L interface transactions using whichever level of detail the firm selects.

When certain transactions are posted in Accounts Payable, LSS automatically creates the appropriate corresponding transaction in Client Accounting. For example, when a check is generated for a client expense (like a filing fee), the system will post an unbilled expense transaction to the client’s file. Accounts Payable also has the option to post an expense to a client file when the A/P transaction is entered – rather than waiting until the check is generated.

If an image file or PDF is attached to a client expense entered in Accounts Payable, that image is also attached to the unbilled expense transaction created in Client Accounting. This allows for things like scanned copies of invoices or receipts to become part of the client record, and to optionally be included on client billing statements.

Other Accounts Payable transactions that post to Client Accounting include trust disbursements, client expense credits (i.e. voids), unapplied credit refunds and unapplied retainer refunds.

Accounts payable and check writing

LSS provides more than just check writing capabilities – it is a true accounts payable system. Accounts Payable transactions can be entered with scheduled payment dates or in batches if desired. The system can then produce “Cash Requirements” reports based on scheduled payment dates, batches, vendors, offices and more. LSS supports multiple offices and virtually unlimited checking and trust accounts.

Accounts Payable provides for several different transaction types, including:

      - payments not related to a client (firm expenses)
      - client expenses that can be billed once the check is written
      - client expenses that can be billed before the check is written
      - client disbursement credits (credits, voids, refunds that offset other A/P transactions)
      - client trust disbursements
      - refunds of client credit balances
      - refunds of client retainer balances

When selecting a vendor for payment, the system provides the option to choose from predefined “saved transactions” to automatically populate things like payment reference, check memo, account numbers and amounts. Recurring transactions can also be defined for payments that are made on a preset schedule.

Checks can be produced on either a “one-off” basis or in groups. Checks for a group of transactions can be generated by multi-selecting transactions with the mouse, or by entering criteria such as payment date range, batch number, vendor, type or office.

If a posted check ever needs to be voided or reversed, a simple mouse click automatically generates the reversing transactions – including necessary Client Accounting transactions where applicable.

Electronic payment management

The LSS Accounts Payable component can be used for more than managing payments by check. It also includes the option to mark transactions that will be paid by electronic transfer. Just like transactions to be paid by check, any transactions that will be paid electronically can be entered with scheduled payment dates or in batches if desired. Cash requirements reports will include transactions scheduled to be paid by check and/or electronic transfer.

All of the features and functionality that apply to Accounts Payable by check are also shared with Accounts Payable transactions that are paid by electronic transfer.

Bank reconciliation

The bank reconciliation module contains all transactions that apply to a cash account regardless of source. This includes deposits entered in Client Accounting, journal entries posted to General Ledger, checks written from Accounts Payable, trust deposits, trust disbursements and more.

After selecting the cash account and entering the bank statement ending date and balance, the system displays all transactions in a clear and concise grid with running totals. Clearing transactions is as simple as “point and click”. If somehow a transaction has only “partially cleared”, the system allows the bank reconciliation transaction to be split so that a partial amount may be cleared, leaving just the remaining amount as outstanding.

Bank reconciliation includes an edit report so that you can review everything before posting, as well as a posting report showing the final results. Bank reconciliation detail can also be easily exported to Excel.

Budgeting

LSS provides for budgeting by month and year for individual G/L account numbers and, optionally, by department, office and suffix (i.e. timekeeper) extensions. Monthly budgets can be fixed (the same amount for each month) or variable (differing amounts by month). Budget details can be printed using the budget report or they can be easily exported to Excel.

On the G/L and A/P Inquiry dashboard, budget comparisons by month, with totals for the year, are presented in both table and chart form. When selecting a group of accounts on the Inquiry dashboard, the budget comparison reflects all of the accounts within the selected group.

LSS includes many standard versions of the Income Statement report – three of which include budget comparisons. There is a month-to-date budget comparison, a year-to-date budget comparison or a combined month and year-to-date budget comparison. Each of which includes the option to show the actual-to-budget variance in either dollars or as a percentage.

Vendor 1099 tracking and reports

Vendor records can include full contact information (names, addresses, phone numbers, email addresses, etc.), default 1099 type, tax id number, comments, default expense code (G/L accounts and client billing code), office, department and more. W-9 information including notification date, classification, company structure and electronic copies of W-9 forms can also be attached to vendor records.

To streamline the accounts payable process, each vendor can be associated with an unlimited number of “saved transactions”. Saved transactions allow new A/P transactions to be automatically populated with things like reference description, check memo, account numbers and amounts whenever a vendor with a saved transaction is selected. When entering an accounts payable transaction, the default 1099 type can be left as-is, or it can be changed in order to categorize the specific transaction to a different 1099 type.

The system includes a vendor inquiry where you can quickly access the last and next payment date with amount, check number and reference for any vendor. It also includes an accounts payable aging plus payment summaries showing total amounts paid last month, this month, last year, this year and since inception with a breakdown by 1099 type. Payment and invoice detail for the selected vendor shows each payment or invoice that has been entered or paid – with full copies of the actual transactions and scanned invoices or receipts attached.

LSS can produce a number of vendor reports including 1099’s (on preprinted stock), vendor lists, vendor histories, cash requirements and transaction journals. For firms that need to submit 1099’s electronically, LSS will create the electronic Federal 1099 file as well. Vendor information can also be easily exported to Excel.

Client direct invoice management

Client direct invoices are invoices for client expenses that have been billed to the law firm, but that are going to be paid directly by the client. With client direct invoices, the firm would not want to bill the client as they would with a normal client expense, because the client is expected to pay the vendor directly. But if the invoice does not get paid by the client directly, the firm may ultimately become responsible for payment. This can present a management challenge to accounts payable departments.

LSS provides a method for entering and managing these client direct invoices that allows the firm to track the details and status of these transactions. A client direct invoice is entered with all of the same information as a standard accounts payable transaction – including copies of scanned invoices or receipts. Although this information is tracked within LSS, it does not impact cash accounts, work in process or client billings.

If the client fails to pay the invoice directly, and it becomes the firm’s responsibility to pay the invoice, a couple clicks of the mouse converts the client direct invoice into a standard accounts payable client expense transaction. The system can then generate a check and bill the client for the expense advanced.

Comprehensive real-time dashboards

The G/L and A/P Inquiry dashboard displays real-time information for any selected account number or reporting group. This includes opening balance, total debits, total credits, net monthly change and closing balance by month, fiscal quarter and fiscal year for any accounting period. Also included are daily, weekly and monthly charts, a budget table and chart, as well as full transaction detail for the selected time period.

A charting tab provides for additional graphing capabilities including 1, 3, 5 and 10-year histories as well as account or reporting group allocations by account, department, office, suffix and vendor.

Individual dashboards for Accounts Payable and Journal Entries provide detailed transaction history with the ability to search by accounting period, transaction date range, payment date range, transaction source, transaction type, check number, client/matter number, min/max amount and more. Individual transactions can be opened to view full details along with any attached invoice images.

Flexible financial reports and graphs

The LSS General Ledger and Accounts Payable component includes a comprehensive set of financial reports, including:

      - Trial Balance (2 versions; each in summary, detail or consolidated)
      - Account Summary (month or year; each in either summary or detail)
      - Balance Sheet (summary and detail versions)
      - Income Statement (10 versions; each in summary or in detail)

Formatting of financial reports is largely firm defined. Account order, grouping, titles, totals and subtotals are specified when setting up the chart of accounts and reporting groups.

Detailed transaction reports include:

      - Transaction journal
      - Account detail
      - Daily cash flow
      - Budget comparison
      - Cash account distribution
      - Cash account register
      - Cash requirements
      - Vendor history

A charting tab provides for additional graphing capabilities including 1, 3, 5 and 10-year histories, account or reporting group allocations by account, department, office, suffix and vendor and more.

Invoice image file management

When entering Accounts Payable, General Ledger or Client Direct Invoice transactions, LSS provides the ability to attach electronic files to specific invoice numbers or client/matter expense transactions. This can include copies of actual invoices or receipts in PDF format, spreadsheets, other image files, etc.

Transactions with attached files that are text searchable can be found quickly and easily using LSS full text search functions.

Files attached to client expense records can be retrieved and viewed in Client Accounting by any users with permission to do so. Optionally, attached PDF’s and image files can be included on client billing statements and fee petition reports.