Controlling trust funds for multiple matters in one banking account is a very common practice within the legal industry but lawyers must be cautious to not allow the funds intermingle. Each matter needs to be scrupulously maintained like a separate entity rather than “borrow” money using their company matters within the same banking account. Law offices have a number of options for recording trust accounts . >
Manual Books – It’s rare to locate a business that keeps their books in literal books any longer, but a couple of firms, particularly single-attorney practices, prefer manual bookkeeping. Manual bookkeeping is slow, prone to arithmetic errors which takes hrs to find, and clumsy if this involves monitoring multiple matters in one account. Computer systems are commonplace and software programs are cheap there really is not any practical reason to utilize pen and paper any longer.
Excel spreadsheets – Lift up your hands should you remember VisiCalc. Wow, you are old! VisiCalc was the very first spreadsheet program launched in 1979 and is built to mimic the manual ledgers bookkeepers used. because it removes arithmetic errors, and virtually every computer includes Microsoft ‘office’ preinstalled therefore the software programs are effectively free. Yet it’s hard to track individual matters inside an account or reconcile a merchant account without lots of sorting along with other manipulations.
Personal Finance Software – Programs made to help customers track their checking accounts and charge cards add reconciliation functions and therefore are considerably less costly than business software. Matters could be monitored within an account using the client like a budget category. However you will find no protections to stop you from overdrawing a client’s trust fund, a vital error in trust management, with no capability to network across multiple lawyers. This may work with just one-attorney practice however is not a perfect solution.
Business Finance Software – Items like QuickBooks or Peachtree offer double-entry bookkeeping, which reduces the risk of typing errors by needing all transactions to balance. They may be networked over the firm and knowledge could be by hand moved to escrow accounting software like Easy Trust but nonetheless tend to be more limited than solutions customized to legal trusts.
Devoted Trust Programs – trust management. Integrated trust features make sure that each matter is paid for for individually. Lawyers can easily see trust status instantly without needing to pick it from the rest of the transactions staying with you account. Automatic alerts allow the firm know whenever a trust balance gets low, and three-way reconciliation guarantees nothing doesn’t happen the cracks.
Lawyers may be worried that specialized legal software programs are more costly compared to options, but Easy Soft’s law practice keeper is remarkably affordable. Try our trust account suite and when you are not completely satisfied, then give it back for any 100 % refund within thirty days.