Segregation of Funds: Ensure strict separation of client money from the law firm's operating capital, depositing all unearned fees and client funds into a specific, properly labeled IOLTA or trust account.
Detailed Recordkeeping: Maintain meticulous, up-to-date financial records for every single client matter using a double-entry accounting system, documenting all deposits, withdrawals, and current balances to ensure transparency and accountability.
Monthly Three-Way Reconciliation: Conduct regular (preferably monthly) three-way reconciliations, which involves matching the bank statement balance, the total of all individual client ledgers, and the firm's internal checkbook/software ledger balance exactly.