Law Society of Ontario (LSO) Paralegal Practice Exam

Which document is essential for tracking client billings in a General Account?

1. Client ledger

2. Fee book or client billings file

3. Case docket

4. Disbursement report

The correct answer is: Fee book or client billings file

The fee book or client billings file is essential for tracking client billings in a General Account because it serves as an organized record that details all fees charged to the client and payments received. This document helps paralegals and legal professionals manage financial transactions effectively, ensuring that they can maintain accurate accounts of services rendered and payment status. Maintaining a fee book allows for a comprehensive overview of what has been billed to each client and helps keep the billing process transparent. It facilitates proper financial reporting, assists in avoiding billing discrepancies, and provides a structured means for clients to understand what they are being charged for, thus enhancing trust and communication between the client and the service provider. This tool supports the firm's financial management by enabling easier tracking of income related to client services. In contrast, while a client ledger would also track financial transactions, it typically encompasses a broader scope that includes various aspects of a client relationship, including notes on communications and case progress, which may not focus specifically on billing. A case docket primarily tracks procedural steps in a legal case, not specifically financial information. Finally, a disbursement report details expenditures made on behalf of a client rather than tracking billable hours or fees directly, which makes it less relevant for tracking client billings.