by Sheila Blackford ©2014 If you hold money belonging to your clients, you need to keep this money separate from your law firm’s money. You will need to open up a Lawyer Trust Account, or IOLTA (Interest on Lawyers’ Trust Accounts). Although your bank considers that you have one trust account, in actuality you have many: one for each client for whom you hold money. In the old days, law firms used Client Ledger Cards to keep track. These days, you’ll likely use a software program to keep track of each client’s money. Talk with your CPA about how to set up these sub accounts or call one of us PMAs to walk you through the steps. If you haven’t gotten your accounting program set up, you can use the Client Ledger Card. The Trust Journal will enable you to track all deposits into and withdrawals from your Lawyer Trust Account/IOLTA.
Posted by SBlackford
Sheila Blackford is an Oregon attorney who has been a practice management advisor for the Oregon State Bar Professional Liability Fund since 2005. She loves writing, riding her horse, and taking long walks with her husband and their dog.