A client payment has arrived, but does it settle fees or fund a matter's expenses? If the client has several matters, which balance changes? Law firm accounting software should help the office explain each movement through its purpose, supporting record and approved allocation.
This is an administrative workflow guide for Egyptian practices. Accounting treatment, tax obligations and classification decisions should be reviewed by the appropriate advisers for the firm's circumstances.
Law firm accounting software should separate the amounts
Distinguish agreed fees, issued requests or invoices, received payments, matter expenses and amounts held for a stated purpose. A receipt is not automatically earned fee income.
The fee agreement provides context
Record the approved basis for charging and any relevant stages or conditions. The total agreement value is not necessarily the amount currently due, invoiced or collected. Keep those measures distinct when reviewing a client account.
Expenses need supporting records
Record the purpose, amount, date, payer and supporting document. Explain how finance approved its treatment: for example, whether it is borne by the firm, charged to the client or awaiting clarification. The software field does not make that professional decision.
Allocate and confirm receipts
When a client submits payment proof, distinguish receipt of the message from confirmation that funds arrived. Link the confirmed movement to the correct client and matter, using the approved allocation process.
If a payment covers several files, record the allocation or the reason part remains unresolved. An incorrect allocation can make one matter appear settled and another overdue when the underlying money was received.
Make statements explain the balance
A statement should show the relevant period, opening position, charges, receipts, adjustments and closing balance under the firm's definitions. Authorised staff should be able to trace an amount to its source and understand any correction.
For EGP reporting, identify the currency and treat any other currency under an agreed method. Collections describe payment activity; profitability requires separately defined revenue and costs.
Invoices and Egypt's electronic invoicing system
Issuing an invoice within software does not establish integration with the Egyptian Tax Authority. Review the official electronic invoicing guidance with your adviser. Request separate evidence of any supplier integration, including its actual scope, rather than inferring it from a billing screen.
Alhossam's stated scope covers invoices, collections, expenses and reporting. Test one fictional financial movement from its supporting record to the client statement, and confirm the available correction and export arrangements.
Frequently asked questions
Is every client receipt a fee?
Check the agreement, purpose and supporting documents. Finance should approve its classification.
Does a collections report show profit?
No. Profit depends on defined revenue, costs and allocation, while collections describe receipts.
Is tax integration automatic?
Ask for confirmation and a separate demonstration. An invoice screen alone does not prove an external connection.
Follow a complete financial movement
Book an Alhossam demonstration with your finance representative to evaluate law firm accounting software through fees, expenses, allocations and an explainable client balance.