One of the most daunting tasks facing attorney is the administration of a trust. Nearly all law offices have a trust account to handle various transactions, and mismanagement of those accounts is not only a disservice to your clients but could also lead to legal penalties including disbarment. The parties don’t even have to have criminal intent. Simple mistakes can lead to serious penalties when it comes to trust accounting.
The law requires that a trust overseer use a proper accounting system and audit trail to account for every penny in and out of the account. In the past this meant contracting with certified accountants who had the skills needed to administer the funds but that is no longer necessary with today’s legal software programs.
A dedicated product like Easy Trust includes features designed specifically to make it easy for attorneys and other professionals to administer escrow funds with all the confidence of an experienced accountant. The trust management software automatically maintains a comprehensive audit trail so there is no chance of undocumented transactions. It enforces basic accounting rules to prevent you from making some of the basic trust accounting mistakes.
Your office must still maintain due diligence. Trust accounting software has the tools to assist in the administration of trusts but must be backed by policies that ensure all transactions are entered completely, accurately and in a timely fashion.
Easy Trust integrates with our law office billing software to handle all of your office’s bookkeeping and accounting needs. You can handle trust transactions from your office computer without having to keep track of paper documents and ledgers. Print out audit reports to document trust transactions whenever you need to.
Does this mean you can fire your accountant? Probably not. Even the best legal software won’t turn you into a CPA overnight. It’s still best to consult with a professional experienced with trust administration to ensure your system is set up correctly. However you can turn the daily bookkeeping tasks over to the law office management software rather than paying your accountant to do it.