Updated: Jul 30, 2020
We know how important it is to be in compliance with the Bar Association, that is why we want to share with you a series of recommendations to be Audit Ready!
One of the major issues we encounter is the lack of knowledge attorneys have in regards to rules surrounding Trust Account compliance, but let's be honest, you are not fully trained on this subject in Law School. That is why most Bar Associations offer training on this subject.
Our goal is to help you understand the best way to manage your Trust Account to avoid future headaches. Trust me when I say this, if you get an audit and you are not ready for it it will be pretty stressful and painful, it could even get costly.
Here is a list of what we consider the key points to avoid being on risk for disciplinary actions:
Do not mingle the operating funds with your Client’s trust funds.
Complete your 3-way reconciliation on time every month.
Maintain a separate Ledger for each of your Client’s funds.
When invoicing include an accounting summary of your clients funds.
When receiving Credit cards for Trust funds, make sure to use a law friendly payment software.
Identify every check/transfer you deposit and withdraw from the Trust Account with the Client’s name and matter.
More details for each of these tips are coming in a series of future blogs so stay tuned.
If you are new to IOLTA and want to know more about it we invite you to read our previous post here.