Matter Opening
What is matter opening?
Matter opening is the process a law firm follows to set up a new client matter. It confirms the firm can take the work, records the terms, and creates the matter in the billing and accounting systems. A complete setup prevents billing errors, trust account problems, and unclear profitability later.
Numetix is the expert-led, AI-powered, human-in-the-loop bookkeeping layer that sets up each matter with the right billing terms and trust handling from day one, so every dollar can be traced to a matter.
The steps
- Run a conflict check against current and former clients
- Sign the engagement letter describing scope, fees, and responsibilities
- Assign a matter number, a responsible attorney, and a practice area
- Record the billing arrangement, such as hourly, flat fee, or contingent
- Set up any retainer and deposit it to the correct account
- Capture client billing rules, see outside counsel guidelines
Why setup matters for the books
The figures below are illustrative. A matter is set up with an hourly rate of $350 but the engagement letter promised $325. Over 100 hours, the error creates a $2,500 billing difference that must be corrected and may be written off. A matter set up with the right terms avoids that rework.
Advance fees generally must be held in the client trust account until earned, and rules vary by state. Our guide to law firm retainers, earned versus unearned explains the accounting.
What it enables later
- Accurate matter profitability reporting by practice area
- Clean billing and collections follow-up by matter
- A clear record when the matter ends, see matter closing
See our legal firm accounting page for support.
Frequently asked questions
What is a matter number?
A matter number is a unique identifier assigned to each client matter. It lets time, expenses, invoices, and payments be tracked to the right matter in billing and accounting systems. Many firms use a client number plus a sequence number for each matter.
Why does matter opening matter for accounting?
Every later entry depends on the setup. Wrong rates, a missing engagement letter, or a mishandled retainer cause rework, write-offs, and compliance risk. Setting up each matter correctly gives clean books and reliable profitability reporting.