Tech Tip #122-Are You Sure You Are Posting Trust Retainers Appropriately?
Trust retainers should only be posted to the correct client funds liability accounts. All too often attorneys post retainers as fee income. This is wrong and could be harmful to your practice. Utilize practice management software that has safeguards in place to ensure that all of your client retainers are appropriately posted, otherwise, you could run into data errors and compliance issues. Learn more about proper trust accounting practices from our recent post, Losing a Case, Pet Tigers, or Trust Fund Accounting, Which Poses the Greatest Risk to Your Firm?.