Law Firm Trust and General Books & Records Best

Transcript:Law Firm Trust and General Books & Records Best:
Law Firm Trust and General Books & Records Best Practices Use of Electronic Banking & Transaction Methods Sara Jiménez, CPA, CA, CFF, CFE & Gustavo Jiménez, CPA, CGA, CFE Professional accountants specializing in forensic accounting and litigation support. Extensive experience working with law firms and lawyers as auditors and investigators as well as providing education and support for books and records compliant with law society rules. Presenters Present best practices for both trust and general law firm bookkeeping with illustrative examples Examine the risks of using electronic banking and electronic transaction methods in a law practice Review of fraud risk factors for law practices to watch out for Agenda Best Practices What type of legal software are you using to record your trust and general transactions? Trust Receipts Journal For each client trust amount received record: date you received the money method by which you received the money, for example: cheque, certified cheque, bank draft, money order, wire transfer, LVTS, cash, etc. person from whom you received the money amount you received purpose for which you received the money (recommended) name of the client for whom you received the money Best Practices Trust Receipts Journal Example1 Illustration taken from the Law Society of Ontario website Best Practices Trust Disbursements Journal For every trust account payment you make record: date you made the payment method you used to make the payment, for example: cheque, certified cheque, bank draft, electronic trust transfer, etc. number of the document you used to make the payment, for example: cheque number, bank draft number, electronic trust transfer number (recommended) person to whom you made the payment amount of the payment purpose for which you disbursed the money (recommended) name of the client on whose behalf you made the payment Best Practices Trust Disbursements Journal Example1 Illustration taken from the Law Society of Ontario website Best Practices Client Trust Ledger Each time you make a trust transaction record: for each individual client – the receipt or disbursement of funds the unexpended balance for that client for firm money – a separate trust ledger should be maintained (this should be minimal (<$20) and usually only for coverage of bank errors) separate trust ledger should be tracked for each separate client matter separate trust ledger should be maintained for each separate interest bearing account Best Practices Client Trust Ledger Example1 Illustration taken from the Law Society of Ontario website