Misappropriation of client funds is where many attorneys run afoul of professional conduct rules. Trust accounts, where you hold, and are responsible for, entrusted but unearned client money, deserve special care and monitoring. Use this guide to reconcile your trust account balances.
Legal accounting is a little different than standard business accounting, as there are unique financial issues within a law firm environment, including trust accounting and client costs advanced. Retainers and trust funds are particularly important to understand, as attorneys have an obligation to adhere to the Rules of Professional Conduct and ethics opinions that govern them. These materials will discuss the fundamental concepts of a legal accounting system, including various rules that directly affect the management of client funds.
Client funds are required to be kept separate from the firm operating account(s).
It is highly advisable that you or anyone handling trust funds make yourself familiar with these regulations and confirm that everyone in the office is complying with these procedures.
A summary of the duties include:
Many solo and small firm attorneys struggle with bookkeeping. Read on to be reminded of how important it is and to learn whether outsourcing is a good option for your firm.
