Law firm trust accounting can be tricky. State Bars impose strict reporting requirements with little margin for error. Firms must adhere to a particular process while managing a client trust account and appropriating funds.
At Lescault and Walderman, our accounting experts recognize the process in its entirety: from collecting the client’s retainer, transferring funds between accounts at the proper time, and balancing the ledger.
Reliable IOLTA accounting services must start with accurate record keeping. If you cannot report every dollar flowing between each account, your firm may be susceptible to infractions down the road.
When it is time to pay the bills, ignorance is no excuse. Comingling funds between your client’s trust account and your operating budget can lead to substantial fines or even disbarment. It is astonishing how often this happens.
Each state has specific IOLTA accounting requirements that should not be taken lightly. If you are unclear about any regulations, you may in fact be managing your client’s trust account unlawfully.
Your ability to diagnose issues with your client trust accounting practices can save you a lot of pain down the road. With the right processes and proper guidance, your firm can mitigate any chance of risk and build lasting relationships with your clients.