The client funds feature is used by most firms to bill and track retainer activity. Client funds accounts are set up on the A/R & Fund Balances tab of the Client file. Client funds account transactions are entered using the Client Funds program. The types of client funds account transactions include deposits, withdrawals and automatic payments to the firm.

Note: Client Funds is designed to be used for non-refundable retainers. Other fund types such as trust funds, escrow funds, refundable retainers, etc., can be entered, but using a trust accounting system (such as Tabs3 Trust Accounting) is recommended to better comply with state bar recommendations.

The client funds feature can also be used to bill the client for retainers if desired. Built-in flexibility lets you bill to replenish a pre-established minimum balance or bill a one-time retainer until it has been paid.

Client funds information can optionally be printed on statements. When included, the Client Funds section prints at the end of the client statement. All terminology used on the statement is customizable. The client's billing statement can include detailed or summarized client funds information. The following is an example of a detail client funds section on a statement.

                       Retainer Activity

         Beginning Retainer Balance                   $1,000.00
10/06/21 Retainer Received                             2,000.00
10/15/21 Funds transferred to account                   -500.00
                                                      ---------
         Ending Retainer Balance                      $2,500.00

The following is an example of a summary client funds section on a statement.

                       Retainer Activity

Client Funds Balance                        $2,500.00

Client funds balances are tracked separately from accounts receivable balances. The following reports include client funds information.

Transaction File List Manual and automatic client funds payments.
Task Code Billing Report Manual and automatic client funds payments.
Detail Work-In-Process Report Client funds balances.
Summary Work-In-Process Report Client funds balances.
Detail Collections Report Client funds balances
Client Funds Report Detail client funds activity

See also:   All About Client Funds