Legal In our recent post, we talked about all of the things lawyers have to do to keep their accounts squeaky clean: •  Deposit (most) retainers into a trust account . •  Bill their clients, then apply all or some of the retainer funds against the bill. •  Mark the invoice as paid, then transfer the applicable money from trust account to operating account. •  Update the retainer balance accordingly. In real life, here is what that looks like: To see how closely related law firm billing and trust accounting are; take a look at this simple example: 1. On January 1, you opened a new case with an initial retainer of $5,000. You deposited the $5,000 in your attorney trust account. Your trust books need to reflect a retainer balance of $5,000. 2. In January, you record $2,700 in time and expenses. You charge it to the matter. 3. On January 31, your books need to reflect the following: $2,700 for the unbilled balance, and $5,000 for the retainer balance. 4. On February 1, you generate an invoice. This converts unbilled time and expenses to billed. Your books now need to reflect $0 for the unbilled balance, moving the $2,700 into the unpaid balance column. The retainer balance is still $5,000. 5. The same day, you pay the invoice from the client’s retainer balance. Your books now need to reflect the unbilled balance as $0, the unpaid balance as $0, and retainer balance as $2,300. You can make a deposit of $2,300 from your trust account to your operating account. Skip one of these steps, and you are stuck playing detective. Say you apply a retainer in trust to a specific invoice, but forget to write the check in your trust bookkeeping system. You’ll have an invoice marked paid, but no funds drawn. You might not even notice your own mistake. Imagine the headache involved in tracing this mistake. Now multiply that scenario by a few occurrences. For each mistake? At best, you’ve got an administrative nightmare on your hands. At worst, you’re under billingor in inadvertent violation of an ethical regulation. Either way, the problem could be solved if you simply make sure that your trust account software works in tandem with your law firm billing software . If that’s the case, things get far simpler. A trust accounting software like Easy Trust works in tandem with a legal time and billing software like Easy TimeBill . All of the above steps are automated, and/or easy to track. About the Author: Easy Soft has automated software solutions for virtually every practice area, from case management, document assembly and time & billing, to debt collection, amortization and escrow accounting. Article Published On: – Legal By: Hassan Elhais – A party to an arbitration contract have right to request annulment of arbitration award if arbitrator did not follow the procedures contained in the arb … By: Robert K. Sanders – Employers make plenty of mistakes and you cannot really blame them if they do not know everything about the employment law. Employing attorneys is certa … By: Jake Winston – Employment law is a very complex part of the law because it is made up of various conditions that are meant to protect both the interests of staff and e … By: Bobby Smith – Employment law is absolutely inclined towards the workers, but you must remember that this law also protects the employers, particularly from abusive em … By: Alfred J. Jones – You can state that discrimination is taking place in plenty of businesses around the world and it’s not only between employees, but also with employers … By: Alfred J. Jones – Discrimination can be something you can feel, but it’ll be very hard for you to prove that you’re indeed being discriminated against, especially in the … By: Robert K. Sanders – Employment law is quite complex because of the fact that it is composed of various conditions that are designed to protect the interest of the employees … By: Larry L. Wise – Discrimination could be experienced by lots of people, but it’s quite difficult to confirm that you have been discriminated against, particularly if you … By: Larry L. Wise – Gender equality has been a major focus in today’s society because many women state that they can do a man’s work and vice versa. Gender discrimination i … By: Michael Black – If you are going to hire an employment lawyer in NYC, practical experience will be an essential element to think about. You may claim that it is not rea … 相关的主题文章: