How Can Lawyers Avoid Unintentionally Misappropriating Client Funds?
Misappropriating client funds can have severe repercussions, no matter which jurisdiction you practice in. Although every jurisdiction has its own rules...
What Do Lawyers Need to Know about Accounting and Client Funds?
Unlike many other business owners, lawyers need to understand two types of accounting: business accounting and legal accounting. Although legal and...
What is the right process for taking money out of a trust account?
Trust accounts are client money held in trust by a lawyer or law firm. Even though the money isn’t being held...
Who can be a signer on a trust account?
Because a trust account essentially involves a law firm or attorney holding a client’s money for them, the American Bar Association...
What happens during an audit of trust accounts?
The possibility of being selected for a random trust account audit can be stressful, but understanding how the process works can...
Who can and should be a signatory on a trust account?
Establishing a client trust trust account for your law firm means designating signatories. Signatories are able to sign for account-related tasks...
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What name should my law firm put on trust accounts?
When opening a trust account, what name to put on the account can cause some confusion. Attorneys often wonder what the...
What is the difference between a flat fee agreement and a retainer?
When you develop your pricing structure and client payment options for your law firm, you’ll need to evaluate a number of...
When can a lawyer take money out of a retainer?
Retainers are helpful resources for law firms to manage their client’s payments. Not only do they provide funds to kick start...
As a lawyer, what should I do if I make a trust accounting mistake?
Making a trust accounting mistake can lead to serious repercussions for lawyers, but proper handling is critical in order to avoid...
What do I do if a client overpays?
If a client overpays, those additional funds belong to the client and at no point should the law firm keep them....
How should I record trust deposits?
No matter what type of accounting your firm uses, trust account deposits should be recorded using the principles of double-entry accounting[1]....
How do I maintain trust account compliance?
In order to maintain trust account compliance, be prepared for an audit[1] and avoid sanctions, firms need to adhere to a...
What is a three-way reconciliation?
Everyone who has balanced a checkbook knows how to perform a two-way reconciliation – you verify that the balance shown on...
What is the difference between an operating retainer and a trust retainer?
An [simple_tooltip content=’Operating Retainer allow you to take and keep client funds in your operating account.’]operating retainer[/simple_tooltip] refers to funds received...
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