LAFAMS Account Management System For Malaysian Small Legal Firms

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LAFAMS: Account management system for Malaysian small legal ﬁrms
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Zuhairah ARIFF Abd Ghadas
Universiti Sultan Zainal Abidin | UniSZA
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Wan Nur Syahida Wan Ismail
Universiti Malaysia Terengganu
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Pertanika J. Soc. Sci. & Hum. 23 (S): 239 – 250 (2015)
ISSN: 0128-7702 © Universiti Putra Malaysia Press
SOCIAL SCIENCES & HUMANITIES
Journal homepage: http://www.pertanika.upm.edu.my/
LAFAMS: Account Management System for Malaysian Small
Legal Firms
Abd Ghadas, Z. A.1
*, Wan Ismail, W. N.², Abd Aziz, A.³, Harun, N. A.³, Jusop, M.²
and Abd Rahman, C. A.²
1
Faculty of Law and International Relations, Universiti Sultan Zainal Abidin, Gong Badak Campus,
21300 Kuala Terengganu, Terengganu, Malaysia
²Faculty of Economics, Accountancy and Management Sciences, Universiti Sultan Zainal Abidin,
Gong Badak Campus, 21300 Kuala Terengganu, Terengganu, Malaysia
³Faculty of Informatics and Computing, Universiti Sultan Zainal Abidin, Tembila Campus, 22200 Besut,
Terengganu, Malaysia
ABSTRACT
One of the vital components of a successful private legal practice is good account
management. Legal firms have a unique business process and specific rules on how
accounting records should be kept and recorded. At present, there are many software
packages for legal account management systems such as the MyCase web-based legal
practice management software and the QuickBooks legal accounting software. However,
for small- and medium-size legal firms in Malaysia, the software designed for international
use might not be suitable. The majority of local law firms are SMEs and most of the time,
their account management is done by the lawyers themselves. With limited knowledge
of accounting and business management, it is not a surprise that many legal practitioners
face difficulties in managing their accounts. LAFAMS (Law Firm Account Management
System) was developed to assist legal firms to manage their financial transactions, monitor
their performance, record cash inflow and outflow and facilitate the auditing process. The
system requires only the basic Windows operating system and is easy to operate. The
report produced by LAFAMS should be
sufficient for submission to the Bar Council
as evidence of proper account-keeping by
legal firms.
Keywords: Account management system, law firms,
SMEs
ARTICLE INFO
Article history:
Received: 15 June 2015
Accepted: 13 October 2015
E-mail addresses:
zuhairahariff@unisza.edu.my (Abd Ghadas, Z. A.),
wannursyahida@unisza.edu.my (Wan Ismail, W. N.),
azwaaziz@unisza.edu.my (Abd Aziz, A.),
shikin_harun91@yahoo.com (Harun, N. A.),
marianajusop@unisza.edu.my (Jusop, M.),
cheazabd@unisza.edu.my (Abd Rahman, C. A.)
* Corresponding author

Abd Ghadas, Z. A., Wan Ismail, W. N., Abd Aziz, A., Harun, N. A., Jusop, M. and Abd Rahman, C. A.
240
INTRODUCTION
According to Ismail et al., (2014) and
Kouser et al., (2011), SMEs have limited
resources and little influence on the market
compared to large companies. Their
survival depends on their ability to take full
advantage of the resources available and
promptly find and adjust to a market niche
(Zhang et al., 2009). Therefore, accurate
decision-making is crucial to the success
of these firms (Fadhil & Fadhil, 2010).
Sian and Roberts (2009) suggested that
managers in SMEs need to have effective
financial management skills and and must
be efficient in information technology (IT)
as a tool to assist them in making effective
decisions.
Computers and software programmes
are important business tools for SMEs
as they can be used to reduce production
and labour costs (Nguyen, 2009), innovate
and facilitate niche marketing, increase
productivity and effectiveness (Gullkvist,
2002), increase efficiency of internal
business operations (Chatterjee et al., 2002;
Tan, 2010), become more innovative and
gain competitive advantage (Thong, 1999;
Nguyen, 2009; Shabanesfahani & Tabrizi,
2012). Other benefits include connecting
SMEs to external contacts such as related
businesses, stakeholders and institutions
and networking with other parties more
easily and cheaply.
In Malaysia, the majority of legal
firms can be categorised as SMEs and
they have specific processes and rules
regarding how accounting records should
be kept and recorded. At present, there are
many software packages for legal account
management systems but most of them are
expensive and cater mainly for the business
processes of big legal firms. LAFAMS
is a user-friendly account management
software developed specifically for lawyers
of small legal firms in Malaysia for the
management of their financial transactions.
RESEARCH METHODOLOGY
LAFAMS is developed using Rapid
Analogy Design (RAD) methodology. RAD
integrates project management techniques,
development techniques, users and tools to
build quality application systems in a fixed
time frame to deliver business value. It can
eliminate the time constraint problem in
order to develop a system faster. RAD has
four main processes and requires less time to
complete compared to the Waterfall Model
approach. In general, RAD is a software
development methodology that involves
iterative development and the construction of
prototypes. The prototype approach creates a
demonstrableresult,whichallowsforrefining
of the system based on the result. Refinement
is based on feedback from the business, the
eventual users of the system. Prototyping
requires an open approach to development
as well as an emphasis on relationship
management and change management.
Fig.1 shows RAD processes, where the
result of each phase, often called an end
product or deliverable, flows down to the
nextphase.Thisisacontinuousphasewhere
prototypes are rapidly developed until they
fulfil the objectives and requirements of the
system.

LAFAMS: Account Management System
241
5
product or deliverable, flows down to the next phase. This is a continuous phase where
prototypes are rapidly developed until they fulfil the objectives and requirements of the
system.
Fig.1: Rapid Application Development (RAD).
The second phase is a repetition of
the prototype development phase i.e.
development, demonstrate, design. It
includes creating a physical design for
the database and mainly focusses
on translation of the design into
programming codes. A code to connect
from programming language to MySQL
Database Management System (DBMS) is
created.
The third phase is testing the prototype
to validate the LAFAMS business process.
Usually, programmes are written as a series
of individual modules and functionality.
LAFAMS is tested by looking at the
functions available in the system. Later,
the flow of the system is tested to ensure
that interfaces between modules work
(integration testing). Next, the analysis
report of the system is compiled. The
next process involves enhancement and
error correction of the prototype. This
stage is repeated until the prototypes meet
the research objectives. The last phase is
deployment in the actual environment after
all system functionalities and the database
design have been validated.
The first phase of the RAD is to
understand the requirements of the system
(analysis and quick design). It requires a
high level or knowledgeable end-users to
determine what the functions of the system
should be. This should be a structured
discussion of the business problems that
need to be solved. This phase of the process
includes deciding what programming
languages and database need to be used.
PHP scripts and the MySQL database are
used as the development tools to develop
a prototype. PHP is a scripting language
originally designed for producing dynamic
web pages. It has evolved to include
command-line interface capability and
can be used in standalone graphical
applications. PHP is a free software
released under the PHP license and is
widely used. It also includes the interface
design that determines what the interfaces
will look like and the data design i.e. what
data will be required. In this phase, the
software’s overall structure is defined. It is
important to understand the requirements of
the system before proceeding to prototype
development.

242
THE MODULE
Legal firms are famous for the high
volume of paperwork they must manage.
Additionally, lawyers must keep track of
their time to manage expenses, revenue
and payroll, among other finance-related
matters. These are challenging when
there are multiple clients or the lawyers
are working on contingency. Therefore,
lawyers today face a great challenge in
having to balance their law practice and
manage their business.
The Legal Firm Account Management
Software (LAFAMS) is an account
management system specially designed
for use in legal practice. This system is
built based on the requirements of small-
and medium-size law firms. Such legal
firms appreciate the convenience and
effectiveness of LAFAMS as this software
takes into consideration the nature of legal
business compared to general accounting
software. Furthermore, it streamlines the
lawyer’s workflow with a centralised
database; hence, it helps to enhance firm
efficiency and prevents lawyers from being
buried under physical files. As LAFAMS
focusses on small- and medium-size legal
firms, this software organises all essential
information of the legal firm in a simple
integrated system.
LAFAMS requires only the basic
Windows operating system to record
financial transactions on daily basis. It
comprises three main modules, which are
the Client Profile Module, Client Account
Module and Office Account Module.
Documents such as vouchers, receipts,
invoices, bank statements and client
datasheets are the input for LAFAMS. This
input is stored in databases and become
sources for the three modules.
The first module is the Client Profile
Module, which categorise the firm’s
clients according to specific cases such as
property procurement and accident cases.
The module accesses information related
to all the firm’s clients from a single point
with comprehensive client profiling that
includes multiple files and contacts, full
transaction history and related documents.
The database is important for preparation
of clients’ registration files and warrants
for the lawyer’s appointments.
The second module is the Client
Account Module, which applies the
cash book concept to record financial
transactions related to client accounts. The
module updates cash inflow and outflow
from client transactions. The main output
from this module are a summary of bank
lists and client balances, client lists by
bank balances and bank reconciliation
statements. These reports are critical for
the audit purposes.
The third module is the Office Account
Module which was developed to manage
the financial transactions of the legal firm’s
operation. It records income and expenses
from the services performed by the firm.
Financial statements such as profit and loss
and balance sheets are the output of this
module. These statements are important for
internal decision-making.

243
COMPARISON WITH GENERAL
CANNED SOFTWARE
There is a variety of off-the-shelf software
with general features in the market. Most
of the systems offer the same applications
for all practice areas. Although they are
fine programmes, they focus on the purely
financial areas; thus, they do not meet the
special needs of attorneys and law firms.
In contrast to them, LAFAMS focusses
on the Client Module (Client Profile
and Client Account), which is a unique
feature for legal firms. Handling client
accounts and office accounts in different
modules enables the separate management
of both accounts and this ensures greater
accountability especially of client monies
at any point of time. The Client Module
also avoids the losing track of a client
balance. Every transaction is documented,
and so, the user may view detailed account
balances and as well as the transaction
history for every client. The Client Module
in LAFAMS also can track multiple bank
accounts and organise client information by
matter or case. Therefore, adoption of this
system helps to ensure movement of client
monies, which fulfils audit requirements
and guarantees better management of
small- and medium-size legal firms.
COMPARISON WITH OTHER
LEGAL SOFTWARE IN THE
MARKET
There are a few software packages that
are specially designed for legal account
management but most of them are
expensive and use complex features that
are not relevant for small firms. In fact,
some of these software packages have
advanced accounting features simply for
enhancement of the system. Such features
are not necessary for small legal firms
and would only end up trapping them into
spending more than they need to.
TABLE 1
Features and Price of Legal Software in the Market
Software/Origin Target Features Price
Legalmaster
USA
Small firms  time accounting and billing, click here to see
sample bills
 open item (invoice based) accounts receivable
 retainer and trust accounting
 fee splitting
 task billing
 electronic billing
 management reporting
 revenue distribution by timekeeper, billing or
originating attorney
 conflict of interest
 calendaring
 case management
 connections to over 30 other law office
application software products
USD695
per licence/user

Pertanika J. Soc. Sci. Hum. 23 (S): 239 – 250 (2015)
244
Table 1 (continue)
Software/Origin Target Features Price
Perfect Case
Manager
UK
Small firms  Accounts
 Case Manager
 Time recording/Billing
 Perfect Books Online
 Legal Aid
£1,129.13
per licence
Prosecutor II
UK
Small firms  Case Related
 Victim Witness
 Calenders
 Reports
 Administrator
£1,100
per licence
Docket Legal
Bar
USA
Small firms  Docket Enterprise
 Matter Link
 Assemble It
 Legal Bar
 Metareveal
USD495
per licence
PracticeMaster
USA
Solo Attorneys
Small firms
 Billing
 PriceMaster
 Financial
USD600
per licence/user
Spider Law
Malaysia
Malaysia
Solo Attorneys
Small firms
Large firms
 Client’s Account
 Office Account
 Office Advance
 Billing Debtors Control
 Time cost/Time slip
 Case KIV/Workflow
 Document Assembly Management
 FD Management
 Payroll
 Bill Generation Wizard
 RFID
RM188 per year
Ecolaw
Malaysia
Small firms  Account maintenance (Bank account, other
account)
 Account Group
 Backup and Restore Database
 Client’s case file
 File category (Conveyancing, Litigation,
Others)
 Foreign currency
 Import data from UBS Lawyer client account
 Lawyer’s detailc
 Transaction by project
 User level and user access
USD299 per
licence

245
Table 1 shows that many vendors
provide cloud computing software. Over
time, the users end up paying more for a
cloud solution than a desktop version as
there are charges for maintaining the cloud
solutions. LAFAMS, on the other hand,
provides practical accounting management
functions specifically for small law firms
and would be inexpensive as it does not
dependent greatly on advanced IT solutions.
LAFAMS SYSTEM
The Legal Firm Account Management
system requires the basic Windows
operating system to financial transactions
on a daily basis. The system consists
of six tables that correspond with the
system (refer to Fig.2) and one database
to keep track of records. The data in
the database can be retrieved, deleted,
added and updated by users while the
administrator has authorisation to observe
activities recorded on the system. In fact,
this system specialises in accounting,
and there are many preventive measures
taken to ensure cash flow is calculated
correctly.
LAFAMS: ACCOUNT MANAGEMENT SYSTEM
Figure 2. Account management system.
System Architecture and Framework
System framework is a platform for developing software applications that provide a
foundation on which software developers can build programmes for a specific platform. The
architecture of the software is a depiction of the system that aids in the understanding of how
the system will behave. Figure 3 shows the system framework with its input i.e. Client
Module, Client Account Module and Office Account Module. The Client Module contains
details and personal data of the client. The Client Account Module applies details of the
client’s financial transactions while the Office Account Module manages the firm’s financial
operations. The core of the system are the transaction details, which require the operation of
both the office account and client account. Data are also analysed through the records
presented in reports.
Fig.2: Account management system.
System Architecture and Framework
System framework is a platform for
developing software applications that
provide a foundation on which software
developers can build programmes for
a specific platform. The architecture of
the software is a depiction of the system
that aids in the understanding of how
the system will behave. Fig.3 shows the
system framework with its input i.e. Client
Module, ClientAccount Module and Office
Account Module. The Client Module
contains details and personal data of the
client. The Client Account Module applies
details of the client’s financial transactions
while the Office Account Module manages
the firm’s financial operations. The core
of the system are the transaction details,
which require the operation of both the
office account and client account. Data are
also analysed through the records presented
in reports.

246
14
Figure 3. System framework.
System Implementation
System implementation is the action that must follow any preliminary thinking in
order for something to actually happen. It is the process of getting a software system
operating properly, including installation, configuration, running, testing and making any
necessary changes. Figure 4 shows the homepage of LAFAMS that sets up the menu of the
system.
Legal Firm Account Management System Framework
Client Profile Client
Account
Office
Account
Client Transaction Company Transaction
Users
Module
Transaction
Analysis/
Reporting
Client Balance Financial Report REPOSITORY
Client Profile DB
Client Account DB
Office Account DB
Record
Fig.3: System framework.
System Implementation
System implementation is the action that
must follow any preliminary thinking in
order for something to actually happen. It
is the process of getting a software system
operating properly, including installation,
configuration, running, testing and making
any necessary changes. Fig.4 shows the
homepage of LAFAMS that sets up the
menu of the system.LAFAMS: ACCOUNT MANAGEMENT SYSTEM
Figure 4. Homepage.
Figure 5 shows the chart of the account system, which the user needs to set a code for an
account name.
Fig.4: Homepage.

247
Fig.5 shows the chart of the account system, which the user needs to set a code for
an account name.
15
Figure 4. Homepage.
Figure 5 shows the chart of the account system, which the user needs to set a code for an
account name.
Figure 5. Account system.
Figure 6 shows the opening balance menu, where each year’s transactions are displayed.
Fig.5: Account system.
Fig.6 shows the opening balance menu, where each year’s transactions are displayed.
Figure 6. Opening balance menu.
Figure 7 shows the transaction menu of Cashbook for a client.
Figure 7. Transaction menu.
Fig.6: Opening balance menu.
Fig.7 shows the transaction menu of Cashbook for a client.
Figure 6. Opening balance menu.
Figure 7 shows the transaction menu of Cashbook for a client.
Figure 7. Transaction menu.
Fig.7: Transaction menu.

248
Fig.8 shows the report of a client ledger that provides details of cases of each client.
17
Figure 8. Report of client ledger.
Figure 9 shows the balance sheet, which displays all records of all transactions.
Figure 9. Report of balance sheet.
CONCLUSION
Fig.8: Report of client ledger.
Fig.9 shows the balance sheet, which displays all records of all transactions.
17
Figure 8. Report of client ledger.
Figure 9 shows the balance sheet, which displays all records of all transactions.
Figure 9. Report of balance sheet.
CONCLUSION
Fig.9: Report of balance sheet.
CONCLUSION
LAFAMS provides effective ways to
maintain and manage business accounts
of small law firms in Malaysia. It involves
paperless maintenance, yet is able to
record client information for easy retrieval,
reducing paperwork, which is a bane of
the traditional method of account-keeping.
LAFAMS is also able to track payment
records in terms of debit and credit
payments as well as unpaid billing. Reports
produced by LAFAMS are sufficient to

249
meet the requirements of the Bar Council
for evidence of proper account. With
regards to system requirements, LAFAMS
is able to retain existing hardware and
network resources of a legal firm to
safeguard its existing IT investment. The
main setback of this system is that it needs
to be upgraded if the firm’s work flow
changes. For example, if the firm receives a
new type of work it has never done before,
it will need to contact the administrator to
upgrade the system; this might incur an
additional cost.
LAFAMS is obviously suitable for
small- and medium-size law firms to
manage their accounts while complying
with the standard accounting requirements.
This software is easy to use and is ideal for
lawyers who have limited knowledge of
accounting.
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