And here’s a sample checklist to get you started.
When we close a matter, both our attorney malpractice insurance, and our state bar ethics rules, expect a lot of us! It’s not as simple as saying a friendly goodbye to the client and moving on with life. Instead, we have obligations that include formal disengagement or matter closing letters, returning funds held in trust, and more.
A basic matter closing checklist can, and has, saved firms thousands of dollars and more in insurance premiums, avoided bar complaints, and avoided malpractice claims.
Having a simple way to track these obligations, including what steps are involved in a matter closing, who’s responsible for each step, and what’s been done versus what remains to be done, can be complicated. And as attorneys, we don’t have time for complicated. So at Skepsis, we recommend streamlining this process with a simple checklist. With a checklist, you and your staff simply work through checking off boxes anytime you close a matter, to ensure that none of the critical matter closing steps fall through the cracks. A basic matter closing checklist can, and has, saved firms thousands of dollars and more in insurance premiums, avoided bar complaints, and avoided malpractice claims.
Here’s a sample matter closing checklist to get you started.
Skepsis Tech’s Sample Matter Closing Checklist.
- Change the matter to “Pending” in your practice management software.
- Confirm any settlement or other funds due from third parties are fully paid, and have cleared the bank.
- Confirm the case is closed on the court’s docket. If not, file dismissals or other paperwork necessary to close it.
- Confirm the firm has no original documents, and if it does, return them to the client.
- Email the matter closing letter to the client.
- Notes: Be sure to include critical matter closing information, including clear statements that “we will perform no further work on your behalf,” and “we do not have any original documents to return to you.” Also include a polite note that: (1) they will be receiving their final bill shortly, and per their fee agreement, payment is due within X days; and (2) once their final bill is paid, we’ll perform a final accounting of funds in trust and any remaining trust funds will be returned to them at that time.
- Pro Tip: We expect we’ll post a sample Matter Closing Letter soon, so be sure to sign up for our mailing list to be notified when that’s posted.
- Generate and issue final invoice to client.
- Client pays final invoice.
- Generate a “post-final” invoice to catch any WIP/EIP that didn’ make it into the final invoice. Apply a credit note to the invoice to zero out the client’s account.
- WIP stands for work in progress, and EIP stands for expenses in progress. This is just shorthand for time and expenses entered, but not billed out to the client.
- Change the matter to non-billable so that no more billable entries find their way into the system.
- Perform a final accounting of client trust funds, and return any funds remaining in trust to the client.
- Confirm the return of client trust funds clears (ie, that the client cashed the check).
- Change the case status to “Closed” in your practice management system.
For more time-saving simplicity, turn your checklist into a workflow.
A matter closing checklist is a great start, but when closing a client file involves multiple staff members, passing around a checklist isn’t particularly efficient. Save yourself time and headaches by turning your checklist into a workflow in your practice management software.
Not all practice management software supports this feature, but some of the most popular do. For instructions on how to create a workflow in Clio Manage, click here. For Practice Panther, click here.
Skepsis Tech’s Consulting Services Save Law Firms Time, Money, and Malpractice Claims.
Skepsis Tech works with law firms to develop matter closing and other processes that save time and increase profits, and also protect our clients’ licenses to practice law. If you’d like to learn more about what Skepsis Tech can do for your firm, don’t hesitate to book a discovery consultation today.