Bankruptcy Bookkeeping
Bankruptcy Bookkeeping
Bankruptcy bookkeeping can be a difficult process. Sound Bookkeepers is here to help as CEO Russ Shulman has worked at the Washington State Bar Association and has provided consulting services for attorneys specifically in tax, real estate, bankruptcy, personal injury, family law, criminal law, estates, wills, and trusts! Russ has expertise in this particular area and can help you when it comes to bankruptcy bookkeeping. For a video from Russ discussing bankruptcy bookkeeping, follow the link here!
Some of the work we do at Sound Bookkeepers helps both bankruptcy attorneys and debtors. Bankruptcy bookkeeping is not fundamentally different from other bookkeeping, except for the reporting and the parties we communicate with. In business, we usually talk to the CEO, sometimes to an office manager or accountant. With bankruptcy bookkeeping, we usually talk with the trustee, the debtor, or the attorney. The debtor must provide records to the trustee who then has to provide records to the courts. These records have to be kept in some sort of accounting format that the courts recognize as correct. Using accounting software in this situation is very useful. However, doing it in the way the court wants it to be done and having it done on time is most important.
One of the challenges of bankruptcy bookkeeping is being able to speak the lingo. You have to know court terminology and be familiar with the process itself. Missing deadlines with the courts make everyone look bad and can have some severe consequences. People commonly file for bankruptcy to protect their assets. If you don’t do things on time and those assets are lost, it can cause a huge problem.
Working directly with the debtor to get records, and converting those records into the proper accounting format is best for everyone.
A third-party bookkeeper, like Sound Bookkeepers, often has lower rates than attorneys who are handling the case. Third-party bookkeepers also have more free time to answer questions and chase down missing paperwork. We also have specific industry knowledge in accounting, which a lot of attorneys don’t have. This makes third-party bookkeepers the best option for bankruptcy bookkeeping.
Another good reason to hire a professional is due to the time involved during the whole bankruptcy case process. Bookkeepers can move around and become full with clients. However, Sound Bookkeepers is a bookkeeping firm that has a number of bookkeepers who can assist you. If your initial bookkeeper needs to move onto a different case, another bookkeeper will step in to assist you without missing a step.
We offer free consultations via phone or Zoom. We are happy to answer any questions you have and get familiar with the way we do things. Contact Russ using the email or phone number listed above.