The Honest Law Firm is made up of five partners who specialize in various areas of law.

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The Honest Law Firm is made up of five partners who specialize in various areas of law. The oldest partner, Bill Brown, founded the firm 30 years ago. His original practice consisted primarily of writing business contracts and helping businesses incorporate. In the early days, Mr. Brown had one secretary who did all the billing. Most of his work was done on a flat- fee basis, and there was no need to provide detailed accounting of time spent on individual clients. However, with the addition of the new partners, the business has become quite complicated. The newer partners specialize in areas such as criminal law, bankruptcy, real estate, and family law. The trend of the business has been such that most of the billing needs to be done on an hourly basis. At present, each partner submits a weekly billing report to the head partner’s secretary. These reports are used as a basis for billing individual clients and providing weekly “salary” reports for the partnership.
The partnership’s main problem is that most of the partners are having a difficult time recording all the necessary information to bill clients. As a result, it is estimated that only about 75% of the lawyers’ actual time is billed to clients. Furthermore, it has been determined that a very weak area for collecting billing information is the telephone system. Several discussions among the partners revealed that the lawyers often spend a lot of time on the telephone with clients, but the information is not recorded into the system for appropriate measures of billing the client.

Required
Design a system that efficiently and effectively records and processes 100% of the firm are billing costs.

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Accounting Information Systems

ISBN: 9780132871938

11th Edition

Authors: George H. Bodnar, William S. Hopwood

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