How do I keep disbursements tied to the right matter?

Record each filing fee or process-server cost as an expense, attach the receipt, and note the matter on the record. That keeps every case cost connected to the case it belongs to.

Where should engagement letters go?

Keep each signed engagement letter in a client-and-year folder alongside that client's invoices, so the relationship record and the billing record line up for the bookkeeper.

Does Cash Workspace track client trust or escrow balances?

No. Cash Workspace organizes invoice and expense records and attached documents; it does not handle trust accounting, hold funds, or process any payments.

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Bookkeeping handoff · Small law firms

A bookkeeping handoff checklist for small law firms

A solo or small-firm attorney tracks money by matter, not just by month: invoices tie to specific cases, court filing fees and process-server costs attach to those matters, and engagement letters define the relationship. Add research subscriptions and a malpractice premium, and a year's records sprawl fast. Cash Workspace gives you one place to record each matter invoice with its status, attach receipts to the expense that triggered them, and keep engagement letters foldered by client and fiscal year for a clean handoff.

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The problem

Why law firm records resist a clean handoff

Legal work is organized by matter, but costs and invoices often get filed by month or by inbox, breaking the link back to the case. Without that link, your bookkeeper can't tie expenses to the right matter or confirm which invoices were paid.

Matter invoices are marked paid informally, so the firm's outstanding balances are guesswork.
Court filing fees and process-server charges get paid and forgotten, with no receipt attached to the matter.
Research subscriptions (Westlaw, Lexis, practice software) renew quietly and the invoices aren't saved.
The annual malpractice premium is a single large expense that's easy to misfile.
Engagement letters live in a case folder, separate from the financial record, so the relationship and the billing don't line up.

The workflow

Work through the firm handoff checklist

Tie each invoice and cost to its matter, attach the proof, and file engagement letters by client and year.

1
Record matter invoices
Log each client-matter invoice with its number, amount, dates, and status of draft, sent, partially paid, paid, or overdue.
2
Attach disbursement receipts
Record filing fees, process-server costs, and other case disbursements as expenses with the receipt attached and the matter noted.
3
Capture subscriptions and insurance
Record research subscriptions and the malpractice premium as expenses with receipts, in a consistent category.
4
Folder engagement letters
Keep each signed engagement letter in a client-and-year folder so billing and relationship records line up.
5
Review and file the year
Scan matter invoice statuses, confirm receipts are attached, and file the fiscal-year folder for export.

Record structure

What to record for each firm entry

These fields keep every invoice and cost tied to its matter and client.

Client and matter: The client record and the specific matter the invoice or cost belongs to.
Invoice number: Your structured number for the matter invoice, kept consistent across the year.
Status: Draft, sent, partially paid, paid, or overdue, updated as payments arrive.
Expense category: A product-defined category such as filing fees, research subscriptions, or insurance.
Amount and date: The invoice or expense total and date so it lands in the right matter and fiscal year.
Attached document: The court receipt, subscription invoice, premium statement, or engagement letter attached to its record.
Matter status note: A short note on whether the matter is open or closed, so the bookkeeper knows what's still active.

Example setup

An example firm folder setup

One way to structure the fiscal-year folder so matters and money stay linked.

Matter invoices

Every client-matter invoice with its number, status, and dates, in number order.

Case disbursements

Filing-fee and process-server receipts recorded as expenses, each noting its matter.

Subscriptions & insurance

Research subscription invoices and the malpractice premium statement, categorized.

Engagement letters by client

Signed engagement letters foldered by client and fiscal year.

Common mistakes

Mistakes attorneys make at handoff

Recording a disbursement without noting which matter it belongs to.
Leaving matter invoice statuses informal, so outstanding balances can't be checked.
Letting research subscriptions auto-renew without saving the invoices.
Misfiling the annual malpractice premium so it gets double-counted or missed.
Keeping engagement letters only in case files, disconnected from the financial record.

How it helps

How Cash Workspace helps

Invoices linked to matters

Record each matter invoice with client, status, and dates so outstanding balances are easy to review.

Attach the disbursement proof

Attach court and process-server receipts to the expense that triggered them, with the matter noted.

Engagement letters by client and year

Keep signed engagement letters in client-and-year folders so the relationship and the billing match.

Contract folder

Keep engagement letters and agreements organized for handoff.

Invoice status review

Confirm every matter invoice's status before you hand off.

Expense packet

Organize disbursements and subscriptions for your bookkeeper.

Accountant document checklist

See the documents an accountant typically asks for.

All finance workflows

Browse the full Cash Workspace workflow library.

FAQ

Law firm handoff FAQ

How do I keep disbursements tied to the right matter?: Record each filing fee or process-server cost as an expense, attach the receipt, and note the matter on the record. That keeps every case cost connected to the case it belongs to.
Where should engagement letters go?: Keep each signed engagement letter in a client-and-year folder alongside that client's invoices, so the relationship record and the billing record line up for the bookkeeper.
Does Cash Workspace track client trust or escrow balances?: No. Cash Workspace organizes invoice and expense records and attached documents; it does not handle trust accounting, hold funds, or process any payments.

Organizing help — not tax, accounting, or legal guidance

Cash Workspace is a free workspace for organizing invoices, expenses, receipts, clients, and documents. This page is organizing guidance only — not tax, accounting, legal, or bookkeeping guidance. Cash Workspace does not connect to your bank, does not scan or read your receipts for you, and does not move or collect payments. Whether an expense is deductible depends on your situation, so confirm it with a qualified accountant or tax professional.

Hand your bookkeeper matter-linked records

Start a free workspace and record matter invoices by status, attach disbursement receipts, and file engagement letters by client and year for a clean handoff.