Trust Accounting for Attorneys: A key Topics in law Firm Management

Join our webinar on trust accounting for attorneys, designed to help you navigate the various aspects of managing client trust funds. We’ll discuss separating trust accounts, as well as the principles of revenue recognition and expense management. We'll discuss reconciliations of trusts including the of Interest on Lawyer Trust Accounts (IOLTA). Enhance your professional practice by gaining insights into general accounting practices used in Trust accounting. Don't miss this opportunity to improve your firm management skills. Register now!
Duration: 1 Day
Hours: 1 Hour
Training: Live Training
Training Level: All Level
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Recorded
Single Attendee
$199.00 $332.00
6 month Access for Recorded

Overview: 

Accounting for client trusts is an important responsibility of lawyers.  Lawyers are required to know the regulations in their jurisdiction. Although, these rules will differ, there are some general guidelines to understanding the accounting element managing the trust. 

Why choose this course?

Trust accounting for attorneys involves the management of client funds that are held in trust by the attorney. These funds are not the property of the attorney but are held on behalf of clients for various purposes such as retaining fees, settlement funds, or other client-related transactions. Various aspects of trust accounting for attorneys include:

Separating Accounts:

  • Trust Account: Attorneys must maintain a separate trust account for client funds. This account should be distinct from the attorney’s operating account.
  • Operating Account: This is used for the attorney's own business expenses and personal funds.

Interest on Lawyer Trust Accounts (IOLTA)

  • In some jurisdictions, small or short-term client funds may be pooled into an IOLTA account.
  • Interest earned on these accounts is typically used to fund legal aid and other charitable causes.

Revenue Recognition

  • Attorney fees can be recognized as revenue when specific criteria are met to ensure the revenue is earned and realizable.
  • The recognition of attorney fees as revenue depends on the fee structure and the stage of service delivery.

Expenses

  • There are various types of expenses related to clients.
  • Personal or business expenses of the lawyer should be paid through operating accounts rather from the trust account.

Reconciliation

  • Reconcile the bank balance to the firm’s ledger balance to explain differences.
  • In trusts where multiple client accounts are in a single trust, such as IOLTA, the total amount for all clients should reconcile to the ledger.

Course Objective: 

Develop an understanding of trust accounting used by law firm for their clients.

Target Audience: 

  • Attorneys that are involved in managing client funds

Basic Knowledge: 

Beginnerlevel

Curriculum
Total Duration: 1 Hour
Segregation of Trust Accounts and Operating Funds
Interest on Lawyer Trust Accounts (IOLTA)
Revenue Recognition Timing
Expense Management
Reconciliation of Accounts