Lack of understanding trust money
Mistakes in business are inevitable, from simple typos to missing a meeting or sending an email to the wrong recipient. Most times these mistakes are forgotten, or at least, quickly repaired.
However, mistakes when managing a trust account may be costly and serious. They can cause irreparable damage to a law practice’s reputation or even lead to the disbarment of a lawyer.
A lack of understanding of the Uniform Law and Legal Professional rules with regards to the definitions of trust monies and how they are to be managed is not an acceptable defence to offer when found to be non-compliant of your obligations with trust monies.
So, be familiar with the rules in your state and stay up-to-date. Legal Bookkeepers Institute have on-line courses available for each state outline your requirements when dealing with Trust Money. www.legalbookkeepersinstitute.com.au