You’ve completed the reconciliation, but the numbers do not agree. The client bank statement shows one figure, while the cashbook or total client ledger balance shows another. It may be tempting to assume that the difference is a minor posting error and move on. That is precisely when the investigation should begin. When a three-way…

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A client owes the firm money, while the firm is still holding funds for that client. Commercially, it may seem sensible to retain those funds until the outstanding invoice is settled. However, a solicitor cannot automatically retain client money for an unpaid invoice simply because the client owes the firm money. The key question is…

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Yes, a law firm can transfer client money to pay legal fees, but only when the money is properly available for that purpose and the correct steps have been completed. Simply raising an invoice does not mean every balance held for that client can automatically be transferred to the firm’s business account. This is where…

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