Generally, we need the following documents for bookkeeping purpose:

According to the requirements of the Law Society, you must keep the following records for at least ten full fiscal years:

  • Trust receipts journal
  • Trust disbursements journal
  • Client trust ledger
  • Monthly trust comparisons, including supporting trust bank reconciliations and client trust lists
  • Valuable property record
  • Bank statements or pass books, cashed cheques, and detailed duplicate deposit slips for all trust and general accounts
  • Signed electronic trust transfer requisitions and signed printed confirmations of electronic transfers of trust funds

Read more: Books and records of law firms

An important decision every lawyer faces in setting up their practice is how to ensure their books and records are maintained in accordance with the requirements of the Law Society.

There is a prevalent notion among lawyers that the bookkeeper’s role is akin to that of a data entry person. Some lawyers may hire a relative for this job or delegate it to a secretary without careful deliberation of their qualifications. Poor books and records lead to costly administrative suspension by the Law Society.

Read more: Choosing a bookkeeper for law firm