Understanding the difference between income and revenue is a crucial part of running a law firm. In fact, failure to understand the difference is considered to be one of the pitfalls of legal accounting that has the potential to lead to other issues. Failure to make this differentiation can lead to inaccurate books, compliance issues, and even ethics violations. Accounting Is Hard, Legal Accounting Is Harder — find out what you should know to run a successful law practice AND business.