![]() ![]() ![]() The short story is that we scored a perfect on our audit in August, and were told we were one of a few North Carolina firms each round of audits to do that. With just a few clicks every couple of months we kept our accounts perfectly balanced and all of our money accounted for. We’d had our Trustbooks subscription for three years, and the ease of use is hard to oversell. In 2019 the audit notice came, and though I was nervous I was also ready. I never thought we’d get audited when I opened Bull City Lawyer in 2016, but on the advice of a veteran lawyer, I got Trustbooks anyway. The Florida Bar allows you to keep digital copies of all the required documents so long as they contain all the original information and can be produced when required. You’ll need to keep them for at least six years. Bank Statementsĭon’t forget to keep copies of all bank statements for your trust account. Just like your trust ledger, you’ll want to keep track of the same details in your client ledger. A separate page should be maintained for each client that shows all receipts, disbursements, transfers, and ending balance. You’ll also need to keep track of your clients’ trust transactions. check number for all disbursements, and.the name of the client for which trust money was received, disbursed, or transferred,.You’ll also want to keep track of the following: This ledger should log receipts, disbursements, transfers, and account balances. You’ll need to keep your trust ledger up to date. date and time the transfer was completed.bank confirmation that shows the trust account number as the source of the transfer, and.name of the person authorizing the transfer,.When you make transfers out of your trust account, you need to keep documents to support the transfers. intermediary bank name and routing number, if applicable.receiving and sending account holders’ name, address, and account number, and.receiving and sending banks’ names and routing numbers,.If you receive payments to or make payments from your trust account using a wire transfer, be sure to include the: clearly identify the client or case number in the memo line of the check.include all endorsements and any other data or tracking information, and.You’ll need to keep your canceled checks which must: If you receive trust money in cash, you’ll need to maintain a separate cash receipt book that contains this same information. The account should be in the name of the lawyer or law firm and must be clearly labeled and designated as a “trust account”. You need to maintain a separate bank account for trust monies. Chapter 5 of The Florida Bar rules is where you’ll find the regulations that govern trust accounts and we’ve summarized the required records you’ll need to keep. But you know you have to maintain adequate records to stay in the good graces of The Florida Bar. You’re focused on providing your clients with great service, and recordkeeping for your trust account isn’t something you regularly think about. Review written Trust Account Plan, if required by Rule 5-1.Trust accounts: all attorneys have them and most attorneys hate them.Referrals to qualified Certified Public Accountants and bookkeepers as needed.Assist with setting up and closing trust accounts and required Florida Bar Foundation forms.Provide trust accounting resources and training materials.Identify all law firm trust accounts and signatories.Initial consultation to determine existing trust accounting systems, practices, and procedures.Whether you are just setting up a law firm or want to ensure that your procedures and records are fully compliant, we can provide straight-forward advice and practical steps to achieving and maintaining a trustworthy trust account. Debra Davis, a lawyer, certified public accountant, and former Florida Bar trust auditor, enjoys helping lawyers understand their trust account responsibilities. Even though non-compliant trust accounts are some of the most serious disciplinary violations, most law schools do very little to teach lawyers how to set up and maintain a trust account that fully complies with Chapter 5 of the Rules Regulating the Florida Bar. Interest on Trust Accounts (IOTA) Program – Compliance Evaluations, Practical Tips and Best PracticesĪ law school education does not prepare lawyers to run a law practice. Trust Account Checkups – Chapter 5, Rules Regulating Trust Accounts and The Florida Bar Foundation, Inc. ![]()
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