Does fund management serve a chief aspect in your law firm?
Your clients pay for various heads which may include fines, court fees, case fees, etc. All the deposits are dominant to be managed properly and separately in order to make your client feel satisfied.
Now the question as to where to adjust the different nature of deposits arises.
Sum received from the client may be of small as well as large nature, the large sum can easily be adjusted in your client trust account, but the small sum that does not serve in income generation needs a place to be stored and deposited.
The idea behind this blog is to provide a detailed outlet of the IOLTA management software which serves to safeguard the small deposits made by your clients and further helps in investing the money earned from these deposits for numerous charitable purposes.
What does IOLTA mean?
IOLTA or the “interest on lawyers trust account” is a type of trust account designed to manage small funds that are being received by your clients, and further, the interest earned on the sum is distributed for charitable purposes.
The US has its own rules and regulations for the use of IOLTA accounts. The amount earned from the interest generated in the US is used in providing help to low-income residents by providing legal aid and assisting the administrative staff of the justice system as well.
What are the functions performed by IOLTA accounting?
- Seamlessly handles small transactions
The specialty of IOLTA accounting management software is that it keeps with it a small sum that clients pay for their work. It does not take into account big amounts, as a large sum automatically generates income thereon.
The lawyer keeps a separate record for all the transactions that take place in Interest on lawyers trust account software.
- Enables interest-earning option
Manage small deposits by your clients through CaseFox interest on lawyer trust accounting software and let the small amount deliver interest.
The earned interest is used for charitable purposes and further proper record of interest and amount deposited and withdrawn are made.
- Easily secures clients money
Client satisfaction is very vital for your law firm to gain success and goodwill. An unsatisfied client may lead to disbalance in the operation of day to day workings of your law firm.
Safeguard each penny given to u by your client in a professional manner with the help of CaseFox IOLTA accounting and secure all the money in a single account.
- Painless withdrawal of cash
Once you earn a certain amount, then you can effortlessly withdraw it from the client’s account. An unearned amount cannot be withdrawn until a particular work gets completed by you.
The interest earned from IOLTA accounting gets directly paid as a charity, it’s not
considered as lawyer’s payment or income.
5 Tips to perfectly manage IOLTA accounting
- Follow proper rules and regulations
The US has set strict guidelines for the management of IOLTA accounts with some designed IOLTA account rules and regulations. A lawyer must properly maintain all the funds and manage time to time entries of each transaction in order to avail higher transparency in client funds.
Improper management of these accounts may lead to strict consequences with IOLTA Check been made with allegations put on the lawyer namely as being unprofessional in work.
- Keep a time to time check on client payment
Clients pay for their work, some pay in advance, some maintain a sum in their trust account. A lawyer must keep a check that whether the amount deposited is small or big in nature.
If it’s a big amount to be deposited then the lawyer must smoothly transfer it to the client trust account by making an entry for the same thereon. If the amount received is small and then the amount can be deposited in the IOLTA account, as the amount may not earn any net worth in the future.
- Never exceed the IOLTA money deposit guidelines
The United States has special provisions and IOLTA account rules made for the amount to be maintained in an IOLTA account. If a client is paying a small amount for a shorter duration or longer duration then the amount needs to be maintained in the IOLTA account.
If the amount is of big nature then it cannot be kept in an IOLTA account as only a small sum can be deposited which does not provide a future return.
- Stay away from malpractices
As a lawyer, it’s your responsibility to manage your client’s money securely. You will be accountable for all the transactions and its entry being made. If any penny is being wrongly utilized then it’s you who will be questioned.
Clients’ trust is bound with your way of dealing with things accurately and timely. Make sure that proper IOLTA check is being made by keeping in mind each sum which is being deposited and withdrawn.
- Ensure proper record-keeping
Every little transaction is important to be jotted and entered. As a lawyer, it’s your responsibility to deliver every report accurately to your client. It’s important to show the correct information regarding your individual client’s funds being held at the particular account to the state bar foundation.
Any record being missed or wrongly entered can lead to questioning and overall reducing the goodwill and trust of the clients of your running law firm.
Money management is one of the complex head which a law firm has to deal with. It’s not a one-time thing to be managed or entered, it needs to be performed at short intervals maybe every month depending upon the law firm operation. Errors may occur with minute deposits, maybe because of improper record keeping, illegal withdrawing, fraudulent activity, and many more. In order to keep a perfect check and to utilize the additional interest earned properly, it needs to be managed by IOLTA management software. With the help of CaseFox trust accounting (IOLTA) software, one can easily get an instant place to store clients’ small funds and can generate interest from IOLTA which then is used for various charitable purposes.