How to Migrate WIP, A/R and Trust Balances to a New Legal System
A finance controlled approach to preserving open legal balances during platform change.
Overview
Migrating WIP, accounts receivable, and trust balances is one of the highest risk parts of a legal financial system change. These balances affect billing, collections, client funds, financial statements, and the firm's ability to continue normal operations after go live.
MATTEROOM migration materials specifically require reconciliation of WIP, billed fees and costs, A/R, unapplied cash, write offs, collections, trust balances by bank, client and matter, and GL opening balances by entity, office, and currency.
Start With a Defined Cutover Position
Finance first needs to decide what date and state will become the starting point in the new system.
Define:
Final time entry deadline; Final expense deadline; Final billing run; Final cash posting deadline; Trust transaction deadline; Source system freeze; Extraction time; Opening balance date; Reconciliation window; Go live date.
Without a controlled cutoff, transactions can be duplicated, omitted, or posted to the wrong system.
WIP Migration
WIP represents work and costs that have not yet completed the billing process.
For each WIP item, the firm may need to preserve:
Client | Rate |
Matter | Fee value |
Timekeeper | Cost value |
Work date | Currency |
Duration | Billing status |
Narrative | Task or activity information where relevant |
The exact detail migrated depends on the firm's reporting and billing requirements.
How to Reconcile WIP
MATTEROOM source materials require time and expense totals by period, matter, and timekeeper, plus WIP totals.
A practical reconciliation can compare:
Level | What to compare |
Firm | Total fee and cost WIP |
Period | WIP by month or accounting period |
Client | Total open WIP |
Matter | Fee and cost WIP |
Timekeeper | Time and value |
Transaction | Individual time or expense entries |
Differences should be investigated before go live.
Accounts Receivable Migration
A/R represents amounts already billed but not yet collected.
For each open invoice or receivable balance, consider preserving:
Client | Currency |
Matter | Tax |
Invoice number | Credits |
Invoice date | Write offs |
Original amount | Payment history |
Open amount | Aging information |
The target system needs enough detail to continue collections and produce reliable reports.
How to Reconcile A/R
MATTEROOM source materials explicitly require A/R, unapplied cash, write offs, and collections to be reconciled.
Compare:
Total A/R | Currency |
A/R by client | Credits |
A/R by matter | Unapplied cash |
A/R by invoice | Write offs |
Aging bucket | Collection totals |
The new system's A/R aging should be explainable against the final source report.
Trust Balance Migration
Trust requires especially careful control because the balances represent client funds.
MATTEROOM's mandatory reconciliation controls specify trust balances by:
Bank; Client; Matter.
The migration design may also need:
Currency | Current balance |
Receipt history | Reconciliation status |
Transfer history | Outstanding items |
Disbursements | Audit information |
The firm's trust procedures and jurisdictional requirements should determine the acceptance criteria.
How to Reconcile Trust
A trust migration should be reconciled at several levels.
Level | Reconciliation |
Bank | Source trust bank total to target trust bank total |
Client | Source client trust balance to target |
Matter | Source matter trust balance to target |
Transaction | Selected or complete transaction history where required |
GL | Trust related control accounts to opening balances |
Bank statement | Target opening position to external evidence |
Any unresolved difference should be documented and owned before the system becomes authoritative.
Unapplied Cash
Unapplied cash can be overlooked because it may not yet belong to a specific invoice.
Preserve:
Receipt date | Currency |
Payer | Bank |
Client | Reference |
Matter if known | Current status |
Amount |
The target system should reproduce the total unapplied amount and support later allocation.
General Ledger Opening Balances
Open operational balances need to connect to accounting.
MATTEROOM source materials require reconciliation of the GL trial balance and opening balances by:
Entity; Office; Currency.
Depending on the firm's design, also validate:
Control accounts | Tax |
Trust accounts | Retained balances |
A/R accounts | Intercompany accounts |
WIP related accounts | Dimensions |
Cash | Ledgers |
The goal is to ensure that detailed operational balances and GL balances agree under the target accounting design.
Trial Conversion Before Final Cutover
Do not make the first full balance migration on go live weekend.
MATTEROOM's migration blueprint includes a trial conversion followed by reconciliation and UAT.
The trial should prove:
Extraction; Transformation; Load; Rejected record handling; WIP reconciliation; A/R reconciliation; Trust reconciliation; GL reconciliation; Report reproduction; Performance.
Fix the process and rerun as needed before final cutover.
Reconciliation Pack
Create one signed pack containing:
Source reports | Approved exceptions |
Target reports | Owner |
Reconciliation summary | Date |
Detailed differences | Sign off |
Resolution notes | Go live decision |
This gives the project an auditable record of why finance accepted the migration.
Cutover Controls
During final migration:
Freeze source transactions; Confirm final billing; Confirm final cash; Confirm trust activity; Run final source reports; Extract data; Load target; Reconcile; Obtain finance sign off; Switch users and integrations.
If the acceptance criteria are not met, the project should use the previously agreed rollback or contingency decision.
What to Monitor After Go Live
During stabilization, monitor:
New time and expense entries; First prebills; First invoices; A/R aging; Cash allocation; Trust receipts and disbursements; Bank reconciliation; GL; Reports; Open migration exceptions.
The first billing and close cycles are important tests of whether the migrated balances behave correctly in normal operations.
Frequently Asked Questions
What is WIP in a law firm migration?
WIP is work and related costs recorded for matters that have not yet completed the billing process.
Should A/R be migrated as one opening balance or by invoice?
The appropriate design depends on collection, reporting, audit, and history requirements. Firms should decide during discovery and validate that the target can support the chosen level of detail.
How should trust balances be reconciled?
MATTEROOM source materials require trust balances to reconcile by bank, client, and matter. Firms should also apply their jurisdictional and internal control requirements.
What happens to unapplied cash?
It should be identified, migrated or otherwise controlled according to the approved migration design, and reconciled as part of the overall receivables and cash position.
What financial sign off is needed before go live?
Finance should approve WIP, A/R, cash, trust, GL, opening balances, required reports, and any documented exceptions before the new system becomes authoritative.
Make Reconciliation the Center of Financial Migration
MATTEROOM's migration framework emphasizes trial conversion, balance reconciliation, user acceptance, cutover controls, and finance sign off.