The IOLTA One bookkeeping application was created by Marathon Records to reduce the task of creating accurate, compliant records to a simple data entry function so that the solo and small firm attorney and title insurer can save time and eliminate bookkeeping errors. IOLTA One is the only application designed with safeguards that help prevent the most common mistakes made in IOTLA bookkeeping.
We began by auditing several hundred IOLTA / IOLA (“IOLTA”) accounts that were created using different accounting applications and identified the most common mistakes, when mistakes were made in the bookkeeping process, and how the application contributed to the errors.
We then researched the IOLTA bookkeeping rules for each state and consulted with attorneys and bookkeepers to identify their needs.
The bottom line: an easy to use program means better records and better audits. In turn, better records and better audits save time and money for both the attorney and the title insurance company.
• An easy to use application saves the attorney time and resources
• Accurate records mean no missing transactions and less potential liability for a title insurance company
• Easy to audit records means that errors and inconsistencies are identified quickly when they are easier to correct
• Accurate records that are easy to audit saves the title insurance company time and resources
IOLTA One is designed to help firms with both a traditional office structure as well as those moving toward a mobile office structure, by allowing the user to view and update records on any computer or mobile device with Internet access.
The bookkeeping application is accurate, easy to use and reduces the responsibility of maintaining IOLTA account records to a simple data entry process. IOLTA One requires the user to enter basic information and will not allow the user to enter a transaction if required information is missing. It also alerts the user if an entry will create one of the common errors frequently found in IOLTA accounts, such as a negative balance.
The application produces a fully compliant main register, individual client ledgers, and reconciliation reports automatically.Sign up for a 45-day free IOLTA One trial
Missing or incorrect client information is the most common error with IOLTA accounts. Most applications allow the transaction to be input regardless of the information that's entered, which allows a user to make errors or skip steps with the intent go back and fix them later. Often times, later never comes.
We recognize that the solo and small firm attorney has many responsibilities and a limited amount of time and resources. We also recognize that auditing an account and correcting an error months after it occurs takes far more time and resources than inputting the transaction correctly.
The IOLTA One answer is to guide the user and collect all of the necessary background data before allowing any financial information to be entered. The client name, contact information, and the client matter identifier must be created first. The user must then select a client matter.
Not until all of this information is provided will the application allow the user to input financial information. The individual client mater ledger then appears, allowing the user to verify the correct client identifier has been entered, and the transaction is entered directly into the individual client matter ledger.
• Every transaction entered has a proper client identifier
• Every transaction will appear on (1) the reconciliation report, (2) the main register, and (3) individual client matter ledger.
An IOLTA account should never have a negative balance for an individual client matter.
The individual client ledger balance is the first safeguard against distributing more funds than an attorney is holding for a specific client matter.
Once a client matter is selected within IOLTA One, the individual client ledger appears on the screen complete with the balance. This balance is updated with each transaction.
The negative balance warning is the second safeguard against unintentional distribution of excess funds. If a user attempts to enter a transaction that will create a negative balance for an individual client matter, the text "Warning: Negative matter balance" appears.
The transaction is not entered unless the user overrides the warning. This eliminates the possibility of negligently entering a transaction that will cause a negative balance for any one client matter.
IOLTA rules require a running balance after every transaction and an individual ledger for each client matter.
The IOLTA One application will not allow a user to enter a transaction without first inputting a client identifier.
In fact, the application will not even show a register to enter a transaction until after a client identifier is entered. Only then will that client’s ledger appear for the user to enter a transaction.
Once the transaction is entered directly into the individual client ledger, it is then merged into the main register in chronological order.
The bookkeeping application will not enter a transaction without all necessary information. For example, the user must enter a date and either a credit or debit amount. IOLTA One will not allow the user to proceed without inputting this information.