Whenever a lawyer takes on a new client or matter, they have several options for how to bill. Yet each billing method comes with its advantages and drawbacks—meaning that the right approach varies by practice area and matter type. Below, we break down the different types of retainer fees, flat fees, and important factors to consider when deciding how to … Read More
Trust Account Balance Sheets: Understanding Liability and Equity
As the owner of a law firm, it’s your responsibility to keep up with monthly reconciliation and financial recordkeeping. Even if you have an accountant, you need to review your firm’s numbers so that you have first-hand knowledge of how the firm is doing. But since you have a degree in law, not accounting, there are a few things that … Read More
What Lawyers Need to Know about Trust Accounts
Almost every lawyer will handle a client trust account at least once in their career. Trust accounts operate according to very specific regulations, and even if you live and breathe them every day, it can still be a lot to keep track of. Never mind if it’s your first time handling a trust account or you haven’t touched one for … Read More
How Should Lawyers Explain Trust Accounting to Clients?
Trust accounts function very differently from other businesses’ client accounts and reflect the unique level of responsibility and trust in the lawyer-client relationship. It’s a good practice to help your clients understand what’s happening with their money in the first place, but if you can successfully explain trust accounts and why they’re different, that can add to clients’ appreciation for … Read More
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 in a bank account that the client has access to, it’s still the client’s money—and must be treated that way. Types of trust accounts The money in a trust account belongs to the client, including the interest. But in … Read More
How can I close my retainer cases faster?
While it’s easy to think that closing retainer cases faster will result in earning more, ask yourself what the next step is—bringing in new cases, right? But you don’t need to hustle current cases to a close to bring in new clients. So instead of focusing your energy on wrapping things up as quickly as possible, work to build a … Read More
7 Vital Trust Accounting Reports for Law Offices
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Top 5 Tips for Trust Accounting Success (9:26)
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Trust Compliance Sample Reports
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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 and State Bar Associations have strict rules in place to ensure that the client’s money is treated like—well, the client’s money. And not the firm’s. One of the regulated areas has to do with who can be an authorized … Read More