What Does Financial Disorganization Look Like in a Law Firm?
What does financial disorganization really look like in a law firm? Sarah Prevost and Steve Libhart dig into a phrase from Sarah and Lynda’s recent ethics presentation that Sarah couldn’t stop thinking about.
They explore how disorganization is rarely intentional, but how small slips like unclear engagement letters, mixed fee structures, and rushed settlement disbursements can snowball into billing disputes and even bar complaints. Steve shares why you should never disburse a settlement before the check truly clears, why a cost-only retainer deserves its own matter, and why a matching bank feed doesn’t mean your trust account is reconciled.
They also tackle attorney supervision under Rules 5.1 and 5.3, year-end cash decisions that can leave firms short in the new year, and why holding checks until January isn’t allowed. Steve’s takeaway: think of financial disorganization as an opportunity to fine-tune.
01:27 Understanding Financial Disorganization
07:15 The Impact of Billing Practices
12:47 Engagement Letters and Client Expectations
17:33 Advanced Client Costs and Cash Flow
22:48 Navigating Year-End Financial Decisions
27:39 Conclusion: From Disorganization to Opportunities
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Accountants Law Pod is hosted by Lynda Artesani, Sarah Prevost, and Steve Libhart and directed, produced, and edited by Teaira Burge and The Proper Trust. Music by ComaStudio from Pixabay
Disclaimer: The content presented in this podcast is for informational purposes only and should not be considered as legal, financial, or professional advice.
The stories we share from the field are meant to educate, never to shame. We have deep respect for attorneys and the complexity of running a firm, and we recognize that many of the mistakes we discuss happen simply because no one ever explained the rules.