Bank Accounts In Law Offices in United States
Practical Information
Note: Some of this information was last updated in 1982
Law offices maintain two basic bank accounts: the firm’s bank account and the trust bank account. The firm’s bank account reflects (1) deposits of all monies belonging to the firm, that is, money the lawyer or lawyers put into the bank when the law office was opened (the capital account); and all cash received from clients in payment for services rendered (accounts receivable); (2) cash withdrawals for operating expenses such as salaries, office supplies, and taxes. The trust bank account reflects all bank transactions relating to monies belonging to the client, such as (1) deposits of advances made by clients for expenses, or deposits that represent any monies collected on behalf of clients; (2) all withdrawals checks drawn on the trust bank account for purposes of remitting to the client those collections that have been made for the client or any other monies that may be due to the client. See accounting records for the lawyer (in U.S. law), Trust or Scrow Accounts.
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