Overview
The Chart of Accounts is a list that shows all the categories your law firm uses to track its money. Think of it as an organized map for your accounting system. Each account in the list represents a type of money your firm has, owes, earns, or spends. These accounts help keep everything in the right place so your records are accurate, your reports make sense, and your business stays compliant.
A clear and well-structured Chart of Accounts helps you understand where your money is going and where it’s coming from. This is especially important for law firms, which must maintain detailed records for both trust and operating accounts. A good Chart of Accounts also makes it easier to file taxes, generate financial reports, and make informed decisions about your firm’s future.
To view your Chart of Accounts follow the steps below:
From your dashboard, navigate to Accounting > Chart of Accounts.
Review the default account categories.
PantherAccounting Plus includes default account types like Assets, Liabilities, Equity, Revenue, and Expenses. These account types help categorize how your firm handles different types of financial activity.
Understand account numbers.
Each account has a number to help organize them logically. For example, Assets might start with 1000, Liabilities with 2000, and so on. This numbering makes reports easier to read and ensures consistent structure.
Learn the five main account types:
Assets: What your firm owns (e.g., bank accounts, trust accounts)
Liabilities: What your firm owes (e.g., credit cards, loans)
Equity: The value left in the business after debts (e.g., owner contributions)
Revenue: Money your firm earns (e.g., legal service income)
Expenses: What your firm spends (e.g., office supplies, software)
Review system generated accounts.
PantherAccounting Plus provides eight required and essential accounts commonly used by law firms. They are the following:Deferred Revenue (Liability) - Money received from a client but not yet applied to work performed (invoices).
Fee Income (Revenue) - Tracks billed and collected amounts from time entries and flat fees.
Client Cost Advance (Expense) - Tracks hard costs expenses the firm pays on behalf of clients (e.g., court filing fees).
Interest Income (Revenue) - Captures interest billed or earned.
Miscellaneous Income (Revenue) - Captures billed and collected amounts from soft and hard cost expenses as well as non-standard or varied sources of income.
Sales Tax Liability (Liability) - Tracks collected and owed sales tax.
Retained Earnings (Equity) - Cumulative net income retained in the firm in previous years after distributions (e.g., profits to partners or shareholders) and taxes. This amount is reinvested in the firm and not paid out as distributions.
Current Year Earnings (Equity) - Tracks year-to-date net income or loss before being rolled into Retained Earnings. This figure includes all income earned and expenses incurred for the current fiscal year.
Note: These accounts cannot be edited or deleted.
Add or edit accounts as needed.
You can add new accounts if your firm needs to track additional details. We recommend retaining the existing category number format for organization and consistency.
You can also edit an account’s name and number, unless it is a system-generated account.
Click here to learn more about adding and editing your chart of accounts.