CosmoLex & Your Trust Accounting Compliance Needs

Trust account regulations may vary from state to state, but they all have one thing on common: get it wrong and you could lose your practice. In fact trust account violations are one of the leading sources of attorney ethics charges and disbarment proceedings.

Despite the danger, too many law firms depend on clumsy manual methods or generic spreadsheet or general use accounting software. Use of such methods for trust accounting is inefficient, time consuming and dangerous as these are prone to human error. Most trust violations are not deliberate fraud, but rather simple bookkeeping mistakes that could be avoided with the right software. Finally these inefficient methods make it difficult to generate three-way reconciliations and other reports required by state trust regulations.

CosmoLex Legal Billing and Accounting Software Includes Built-In Trust Management Tools

Virtually all legal practice areas include trust management, some fields more than others. Whether your firm handles family law, personal injury, estate planning, bankruptcy, collection or any other field, you need specialized time and billing software for lawyers that includes the tools you need for trust management regulatory compliance.

Does your current trust management system include all these features?

  • Each trust transaction is associated with client details including source/payee, amount, date, matter and optional memo field.
  • All funds are maintained by individual client, even if the trust monies are comingled in one bank account.
  • Automatically prevent key trust management errors such as overdrafts, duplicate check numbers, or editing of close transactions.
  • Invalid transactions can be voided but remain in ledger for an accurate audit trail.
  • Monthly reconciliation statements are archived so you can print reconciliations from previous months during an audit.
  • Cleared and outstanding transactions are sequentially numbered.
  • After monthly reconciliation, it’s easy to produce a three-way reconciliation statement that links bank balance, book balance and individual ledger balances.
  • Trust account control reports show receipts, disbursements and running balance for each month.
  • Ledger balance reports show cleared and uncleared portions of each client trust fund.
  • Disbursements checks can be printed out for easy mailing by the firm.
  • Fully reconciled ledgers with zero balance can be closed out to prevent accidental data entry.
  • Your data is kept in a professionally run datacenter for protection against data loss, and files are backed up nightly.

Trust In CosmoLex’s Trust Account Solution

CosmoLex legal trust accounting software is the legal practice management software your practice needs. It not only streamlines your billing and operations, but provides essential trust management features so you can rest easy without worrying about audits or inadvertent bookkeeping errors.

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