Legal Office Dockets and Accounts

• Author: Tina Kamakaris/Jane Kamakaris/Louis Kamakaris
• Pages: 27-40

27

Chapter 3 Legal Office Dockets and Accounts

CHAPTER 3

is chapter discusses the essential aspects of eective practice management, including time

management, legal banking, and billing practices.

BANK ACCOUNTS

e Law Society of Ontario requires law rms to operate two separate bank accounts: a general

account and a trust account.

General bank account is account is the rm’s business bank account out of which

lawyers transact the rm’s business. Lawyers must deposit in this account only money belonging

to the rm and received from clients in payment of services already rendered (completed).

Trust bank account is account is the rm’s bank account in which lawyers must deposit

money in trust for the client, i.e. money that belongs to the client. Technically, all money that

a client pays to the rm belongs to the client until the rm completes the services to the client.

Examples of money that lawyers hold in trust for their clients include retainer money and real

estate purchase money. Here is an excerpt from relevant sections of the Law Society’s by-laws

respecting trust money:

Every licensee who receives money in trust for a client shall immediately pay the

money into an account at a chartered bank...to be kept in the name of the licensee,

or in the name of the rm of licensees of which the licensee is a partner, through

which the licensee practises law or provides legal services or by which the licensee is

employed, and designated as a trust account... [A] licensee receives money in trust

for a client if the licensee receives from a person...money that belongs in whole or

in part to a client…

ACCOUNTING

e rm’s accounting department or oce manager is usually in charge of posting the deposit

of trust or general accounts from clients, usually through billing and accounting software which

keeps track of the balances in the trust and general accounts. e accounting sta makes all

bank entries through such accounting software as, for example, PCLaw, which then automatic-

ally tallies up the total and prints out a deposit slip. Accounting then takes the deposit slip to the

bank to make the trust or general account deposit.

Legal TIP

Unless otherwise

instructed, write

cheques for client

disbursements

(expenses) on the

firm’s general account.

Lawyers may reimburse

themselves right away

by writing trust account

cheques to the firm

in the amount of the

disbursements already

paid out on behalf of

the client.

LEGAL OFFICE

DOCKETS AND

ACCOUNTS

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