Our client, a law firm with offices in New Jersey, Pennsylvania, and Florida, was struggling to manage Trust and IOLTA accounts in compliance with each state’s distinct regulatory requirements. The firm had been audited by the State of New Jersey, and a review of their books revealed multiple years of errors and incorrect entries that needed to be corrected retroactively.
The Capri Bookkeeping Solution
Capri Bookkeeping Solutions conducted a full review of the firm’s trust accounting, identified the historical errors, and made the necessary corrections going back several years. We worked directly with the State of New Jersey to reach an advantageous resolution to the audit. When the State of Pennsylvania conducted its own audit shortly after, the firm asked us to handle that process as well — which we again brought to an advantageous resolution. Following both audits, the firm engaged us to build permanent systems, policies, and procedures around trust and IOLTA account management. We implemented three-way reconciliations to ensure every dollar is accounted for, giving the firm accurate, audit-ready records on an ongoing basis.
Results
- Successful resolution of both New Jersey and Pennsylvania state trust account audits
- Multi-year correction of historical accounting errors across trust accounts
- Ongoing three-way reconciliation ensuring full accuracy in escrow and trust accounts
- Monthly-balanced reporting the firm can rely on for compliance
- Attorneys freed from compliance burdens to focus on legal work rather than accounting oversight
The Outcome
By bringing rigorous, state-compliant procedures to the firm’s trust and IOLTA accounting, we removed a significant compliance risk and gave attorneys back the time previously spent managing escrow account issues. We continue to proudly serve this client with full bookkeeping services across every department of their firm.
