Workflow Templates: Trust Accounting Checklist

Initial Setup and Configuration

Designate a trust account manager responsible for managing client trust funds.

Open a separate interest-bearing bank account for client trust funds, typically known as an IOLTA (Interest on Lawyers Trust Accounts).

Implement accounting software that is compliant with state regulations and bar association rules for trust accounting.

Client Trust Transactions

Deposit client funds into the trust account promptly upon receipt, ensuring funds are never mixed with the firm's operating funds.

Maintain accurate and detailed records for each client, including receipts, disbursements, and a running balance.

Perform three-way reconciliations regularly between the trust ledger balance, the client ledger balances, and the bank statement.

Compliance and Reporting

Review and understand the ethical rules and regulations regarding trust accounting set by the state bar association.

Prepare and file any required trust account reports with the appropriate regulatory bodies in a timely manner.

Ensure that the trust account is audited periodically, either internally or by an external auditor, to verify the accuracy of transactions and compliance with regulations.

Ongoing Management and Monitoring

Conduct internal reviews of trust account books and records periodically to identify any discrepancies or irregularities.

Educate all staff involved with trust transactions on the proper procedures and legal requirements for trust accounting.

Create a system for alerts or red flags that indicate potential overdrafts, misallocations, or fraudulent activity within the trust account.

Template Library Home

Trust Accounting Checklist

Initial Setup and Configuration

Client Trust Transactions

Compliance and Reporting

Ongoing Management and Monitoring

Use this template in Manifestly

Template Library Home

Trust Accounting Checklist

Initial Setup and Configuration

Client Trust Transactions

Compliance and Reporting

Ongoing Management and Monitoring

Use this template in Manifestly

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