by floyd@marathon-records.com

Individual Client Records

Please send all questions and comments to floyd@marathon-records.com

An IOLTA account is a pooled trust account where a lawyer holds funds for several different client matters at the same time. Within the account every client’s funds must be tracked separately in an individual ledger dedicated to only that client matter. This requirement is the same for IOLTA accounts in every jurisdiction and American Land Title Association (ALTA) best practices for real estate (R.E.) escrow accounts. IOLTA One enables the user to create a ledger for each client matter that records every transaction with a running balance after each transaction as well as the main account register simply by inputting the information once. This saves the user time of inputting the same information multiple times.

The number one problem with IOLTA and R.E. escrow accounts are unidentified and misidentified transactions. An unidentified transaction will automatically cause at least one incorrect individual client ledger while a misidentified transaction will cause two incorrect client ledgers. Other applications contribute to this problem by allowing a transaction to be entered with no client id or an incorrect client id. IOLTA One prevents this error by requiring the user to input the client matter first – before any financial information can be entered. As soon as the client matter is chosen the screen shows both the selected individual client matter ledger and the main account register. This double view allows the user to verify the client matter chosen is correct while viewing the most the most recent transactions for the individual client matter and the entire account before entering the financial information. The user inputs the transaction directly into the client ledger, which is then merged into the main account register in chronological order with a running balance after every transaction.

Example - CA Standards: (1) A member shall, from the date of receipt of client funds through the period ending five years from the date of appropriate disbursement of such funds, maintain: (a) a written ledger for each client on whose behalf funds are held that sets forth: (i) the name of such client, (ii) the date, amount and source of all funds received on behalf of such client, (iii) the date, amount, payee and purpose of each disbursement made on behalf of such client, and (iv) the current balance for such client; (b) a written journal for each bank account that sets forth: (i) the name of such client; (ii) the date, amount and client affected by each debit and credit, and (iii) the current balance in such account; (c) all bank statements and cancelled checks for each bank account: and (d) each monthly reconciliation (balancing) of (a), (b), and (c).

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