Trust Accounting…we know, the only two words that can strike pure terror in the minds of lawyers.
We get it, you aren’t accountants but are required to keep impeccable accounting records.
Here are three tips to help ensure your trust accounting is done correctly!
Ensure that whoever is doing your accounting for you is giving you reports every month that are validating that they are actually performing a three-way trust reconciliation. Make sure you are reviewing those reports. It really, really lends itself to one of my favorite statements: TRUST AND VERIFY.
State Bar Requirements
Check your state bar requirements and some of the states are very specific about exactly what you are required to be reconciling within your trust accounting and what documentation you need to retain. Some are very specific, and others are more general.
We go the detailed route with all of our clients to ensure we’re covered for everyone.
Take care of Issues Quickly
When an issue does come up with the trust account, make sure you deal with it right away. If you have a professional performing your reconciliations for you, they will appreciate your prompt attention so they can have resolution through the accounting records.
Trust accounting doesn’t have to keep you up at night, but it does have to be done properly!
If you don’t know where to start, grab our free Law Firm Trust Account Recon Template!