Handle IOLTA and client trust funds the right way. Stay compliant with your state bar requirements.
Trust accounting isn't optional. Every state bar has rules about how you handle client funds. Mess it up and you're not just looking at angry clients — you're looking at ethics violations, bar complaints, and potential suspension.
The good news: TimeNet Law makes trust accounting nearly foolproof. The software does the worrying for you.
Never commingle client funds with operating funds. Ever. Trust money stays in trust. Your fees go to your operating account. TimeNet Law keeps these completely separate.
SCREENSHOT: Trust Accounting main dashboard showing client trust balances, recent transactions, and compliance status indicators
Your trust accounting command center — every client's funds visible at a glance.
Before you record any trust transactions, you need to set up your trust account in TimeNet Law.
Click + Add Trust Account to create your first IOLTA account.
Name it something clear like "Client Trust Account" or "IOLTA." Add the bank name and last 4 digits of the account number for reference.
If you're migrating from another system, enter the current trust balance. Starting fresh? Leave it at zero.
Most solo practitioners only need one trust account. But if you handle different types of funds (like real estate closings separately), you can create multiple accounts.
VIDEO COMING SOON: Setting up an IOLTA trust account — Settings → Trust Accounts → Add Account → enter name, bank, opening balance → Save. Under 20 seconds.
Looping video · No audio · ~10-15 seconds
Your first trust account setup. Name it, link your bank info, set opening balance — done.
When a client gives you a retainer or advance payment:
Click on their name in the sidebar.
This opens the trust deposit window.
TimeNet Law records the deposit and updates the client's trust balance immediately.
Every trust deposit is automatically logged with a timestamp, linked to the client, and reflected in their individual trust ledger. You'll never wonder "did I record that check?"
VIDEO COMING SOON: Recording a trust deposit — select client, click Receive Trust Funds, enter amount and check number, Save — balance updates instantly in the sidebar
Looping video · No audio · ~10-15 seconds
Recording a $5,000 retainer deposit. Client trust balance updates the moment you click Save.
This is the most important part. You can only transfer funds from trust to your operating account after you've earned them — meaning after you've billed the client and they've approved the charges.
Bill your time as normal. The client receives the invoice and can review the charges.
On the invoice or in Payments, click "Apply Trust Funds". TimeNet Law shows you the available trust balance.
You can apply the full invoice amount (if trust covers it) or a partial amount.
The system automatically:
Don't transfer trust funds to operating before creating an invoice. TimeNet Law will warn you if you try, but the real consequence is a potential bar complaint. Bill first, transfer second. Always.
VIDEO COMING SOON: Applying trust funds to a sent invoice — open invoice, click Apply Trust Funds, confirm amount, trust balance decreases and invoice shows Paid
Looping video · No audio · ~10-15 seconds
Invoice sent → Apply Trust Funds → paid in two clicks. The transfer record is created automatically.
At any moment, you should be able to answer: "How much do I hold in trust for Client X?"
TimeNet Law makes this instant:
Run the Trust Summary Report monthly and reconcile it against your bank statement. This takes 10 minutes and protects your license. Do it.
SCREENSHOT: Client trust ledger showing chronological deposits, disbursements, and running balance — plus the Trust Summary Report overview
Every dollar tracked: the client trust ledger shows deposits, withdrawals, and running balance.
Your IOLTA bank statement should match what TimeNet Law says you're holding. Here's how to check:
Reports → Trust Summary → Select date range matching your bank statement.
The total trust balance in TimeNet Law should match your bank balance, adjusted for any deposits or checks in transit.
Discrepancies usually mean a missed entry. Use the detailed trust ledger to track down what's off.
Because TimeNet Law requires you to link every trust transaction to a client, you have a complete audit trail. If the bar ever asks questions, you have answers.
SCREENSHOT: Three-way trust reconciliation view: bank statement total, TimeNet Law ledger total, and individual client balances all matching
Three-way reconciliation: bank statement matches ledger matches client balances. Compliance in one screen.
Client's matter is over and there's money left in trust? Go to the client → Trust tab → Issue Refund. TimeNet Law records the disbursement and you write them a check.
Need to pay an expert witness or court filing from trust? Use Trust Disbursement and select "Third Party." Enter who received the funds and why.
Some clients have multiple matters. TimeNet Law can track trust funds at the matter level if needed. Enable this in Settings → Trust → "Track trust by matter."
This is one area where you want to get it right. Call Perry directly — he's helped hundreds of firms set up bulletproof trust tracking.