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| firm:sop:trust-accounting [2025/10/30 14:57] – [Record keeping] admin | firm:sop:trust-accounting [2025/11/03 13:58] (current) – [Withdrawals] admin | ||
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| Trust record keeping displaces all other work. If trust record keeping becomes difficult or is in any way interrupted by other work, that other work takes a lesser priority. | Trust record keeping displaces all other work. If trust record keeping becomes difficult or is in any way interrupted by other work, that other work takes a lesser priority. | ||
| - | Trust record keeping __must be completed immediately after__ a trust transaction is completed. | + | Trust record keeping __must be completed immediately |
| All trust accounting documents must be uploaded to [[https:// | All trust accounting documents must be uploaded to [[https:// | ||
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| * Correspondents: | * Correspondents: | ||
| + | --> Any trust or ID document that relates to a client or a matter must be __tagged__ with the client number or matter number, as the case may be. | ||
| + | ===== Daily transactions ===== | ||
| + | |||
| + | All transactions that add or remove funds from a trust account must be recorded, with all records being duplicated into and saved in Paperless. | ||
| + | |||
| + | ==== Transaction entry ==== | ||
| + | |||
| + | All trust transactions must be entered in Cosmolex and accompanied by the required documentation, | ||
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| + | ==== Deposits ==== | ||
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| + | Three types of deposit to trust are available to clients. The first and most prevalent is an electronic funds transfer, either by e-transfer or wire. The second is a credit card payment to trust. The third is certified funds in the form of a bank draft or certified check. | ||
| + | |||
| + | All methods of payment require a deposit slip, which must be created in Cosmolex, downloaded from Cosmolex, and saved into Paperless. | ||
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| + | Deposits must be routed to the correct account. The deposit slip must be cross-checked with the account to ensure that funds are being properly deposited. | ||
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| + | Once a deposit slip is entered in Cosmolex, it must be downloaded, initialled or signed by the person who created the slip, and uploaded to Paperless. | ||
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| + | If a deposit is made by credit card payment or certified funds, the following must appear on or be appended to the deposit slip before it is uploaded to Paperless: | ||
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| + | * a credit card transaction reference number generated by LawPay; | ||
| + | * a scanned image of the bank draft or certified check; or | ||
| + | * a scanned image of the bank deposit slip signed by the teller and initialled by the person responsible for making the deposit. | ||
| + | |||
| + | ==== Withdrawals ==== | ||
| + | |||
| + | Any withdrawal of funds from Cosmolex must be documented with a requisition to draw on trust funds, a copy of any relevant instrument used to draw on trust funds (i.e. a check or certified funds), and any other supporting documentation that defines the amount to be drawn or the authority under which it is drawn. | ||
| + | |||
| + | === Requisition to draw on trust funds === | ||
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| + | A requisition to draw on trust funds is obtained by using the following procedure: | ||
| + | |||
| + | - confirm the value to be drawn with the lawyer responsible for the transaction; | ||
| + | - create a Cosmolex entry for the draw with the correct value from the correct client matter; | ||
| + | - confirm that the Cosmolex entry is accurate in all respects; | ||
| + | - download a requisition to draw on trust funds for the transaction from Cosmolex; | ||
| + | - verify that the requisition is correct in all respects; | ||
| + | - convert the requisition to PDF; | ||
| + | - sign the PDF as the person who prepared the transaction; | ||
| + | - obtain the lawyer' | ||
| + | - prepare the instrument required for the transaction (bank transfer, wire transfer, check, etc.); | ||
| + | - scan any paper instruments to PDF; | ||
| + | - complete the transaction; | ||
| + | - note the electronic transfer or check details on the requisition and append PDF images or wire confirmation as necessary; | ||
| + | - combine the signed requisition with the PDF images or wire confirmation or, if applicable, with a copy of the invoice being paid from trust; and | ||
| + | - file the combined requisition in Paperless. | ||
| + | |||
| + | These steps ensure that all withdrawals of trust funds can be tracked and accounted for as necessary. | ||
| + | |||
| + | If a situation arises in which a document other than a scanned check image or wire transfer confirmation is relevant to the transaction, | ||
| ===== Monthly reconciliations ===== | ===== Monthly reconciliations ===== | ||
