Excerpt from Boston Bar Association talk to the BBA SOLO and Small Firm Section

Using Technology Tools to:
Comply with Mass. R. Prof. C. 1.15 related to Client Retainers

The purpose of this presentation is to describe two over-the-counter software applications: Timeslips and QuickBooks to comply with the proposed Rule 1.15 regarding Client Funds accounts.

QuickBooks is one of the best selling accounting applications for small to medium sized firms, due to its user-friendly features. It is a full General Ledger package, which manages your operating and escrow accounts, cash disbursements, etc., while producing financial statements. It also contains a reconciliation module, as required by Rule 1.15 to balance your client fund accounts.

Timeslips is a time and billing application as well as a database program. It is very feature-rich and setting up the initial default settings and preferences will determine its accuracy in billing and reporting. It is capable of unique billing scenarios and multiple billing rates. There are formatting options to provide itemized retainer activity per Rule 1.15.

The two programs are different in their uses and purposes. They can also be complementary by programming them together for a complete solution: Timeslips to track and bill your time and QuickBooks to confirm accuracy via reconciliation to your bank accounts.

Advantages of using technology to track your time and financial transactions in software tools:
• Provides more time to practice law due to greater efficiency in overhead-related activity, such as time tracking and billing
• Timely billings to improve or accelerate cash flow
• Maintains the life blood of your organization in an organized, streamlined computerized manner
• Communicates your services in a timely fashion to clients
• Provides a written record of the balance in the client’s retainer
• Details the earned retainer fees and states the balance
• Insures legal requirement to advise clients when retainer funds have been earned and transferred to your operating account
• Built in reconciliation module to balance IOLTA and operating accounts
• Avoids bar discipline, insures lawyer conduct compliance
• Historical data is maintained in your software files and can be accessed at any time should you need a History Bill for the Court

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