Trust/Client Account Management Overview

Trust/Client Account Management Overview

Overview

Law firms are required to operate under guidance from a local authority/bar association in most jurisdictions. As a general principle this requires that law firms deposit funds into a specific account that is separate from a lawyers own operating funds, and to create and maintain appropriate records of funds belonging to their clients.

Setting Up Your Bank Accounts

You will need to setup (at least) two bank accounts in Matters.Cloud. One for your operating account and to include on your invoices, and the other to maintain records of your trust/client account

The following guide explains how to setup both types of accounts:

Viewing Trust/Client Account Transactions

The simplest way to view or create Trust/Client Account transactions is to navigate to the Trust tab when viewing a Matter:



Creating Trust/Client Account Transactions

Users can create new Trust/Client Account transactions by clicking on the New Transaction button on with the Matter > Trust tab, or when using the Accounts > Trust menu items.



There are three primary transaction types:
  1. Receipts - To record details of monies received from the client or other relevant third party.
  2. Payments - To record details of monies paid out on behalf of the client.
  3. Transfers - To transfer funds between Matters.

Reporting

To comply with your local reporting requirements we provide a range of reporting views:

Trust > Balances

The Trust > Balances report provides a detailed breakdown of the current funds held for each Matter.



Trust > Bank Accounts

The Trust > Bank Accounts report provides details of each of the Trust / Client Accounts used by your firm



Clicking on the Name of a Trust / Client Account will then provide a detailed breakdown of the associated transactions for the period selected:



Note: This view is typically used when undertaking a three-way reconciliation with your bank account and or accounting platform.

Trust > Transactions

The Trust > Transactions report provides a detailed breakdown of all transactions within a defined time period.



Reconcile Your Bank Account

Once you have summaries of your Trust / Client Accounts both at bank and individual Matter levels, you can reconcile these amounts to your actual bank accounts by comparing them to your bank statements of the information within your accounting software (eg Xero, Sage Cloud Business Accounting or FreeAgent).

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