Accounts in Law Ruler: Multiple Trust and Operating Account Balances in Cases, and Other Account Types Follow
Ever wonder how the bank account balances are tracked inside of each case? What if you have multiple Trust and Operating accounts used in Law Ruler? Or what about another account that is used for other expenses such as pre-settlement vendor payments or escrow?
Here are some FAQ (Frequently Asked Questions) and Answers on this topic:
Q: What about other non-trust/operating accounts such as escrow accounts?
> A: Law Ruler case management allows three (3) different types of accounts that are used for different purposes.
- Trust Account - the IOLTA Trust Account should be used for trust deposits, withdrawals, and other transactions. It is best practice to never comingle client and law firm funds in trust accounts.
- Operating Account - a law firm's Operating Account is generally the account that payments to third-party vendors will come from. You should not deposit client funds in an operating account and instead use a trust account.
- Other Account - Law Ruler includes a third account option known as the Other Account that can be used for pre-settlement vendor payments, credit cards, and other payments to vendors and more. Of note, the Other Account does not affect the case balance and is generally used for bookkeeping purposes only.
- For example, if you want to mark that you paid a vendor before a settlement is disbursed, then you would use the Other Account because it won't affect case balance. Then, when the case is settled, at that time, you will transfer funds from the Trust Account to the Operating Account, and pay any unpaid third-party vendors out of the Operating Account.
Q: If I have multiple Trust and Operating Accounts, which account is used for the Trust Account Balance in the Case page (Financial Details)?
> A: The total balance is displayed for all Trust accounts for transactions related to the current case only.
Q: Which account is used in Law Ruler Invoices/Settlements in the Bank Account Balance and Transaction detail?
> A: All bank accounts for transactions related to the current case will be totaled and displayed.
Law Ruler includes virtual Trust account balance tracking for all Trust transactions in each case in the Financial Details section.
Also, each Invoice and Settlement includes a bank account balance for Trust and Operating accounts for all transactions in the case.