Law firm bookkeeping.
The trust account has to be right every month. So does everything else. Monthly bookkeeping for solo attorneys and small firms. The IOLTA account reconciled every month, client funds kept apart from firm money, and operating books that show what the practice actually earns.
Law firm books fail in one place, and the bar knows where.
Most small firms keep decent operating books. The trust account is where the trouble lives, and it is the one the Board of Professional Responsibility asks about.
Trust account reconciliation
The IOLTA account reconciled every month, three ways: bank, book and the client ledger. Every client's balance known, never negative, never mixed with firm money.
Retainers and advance fees
A retainer is the client's money until it is earned. Recorded in trust, moved to operating when billed, so income is right and the trust ledger stays clean.
Fees, costs and reimbursements
Filing fees and costs advanced for a client are tracked to the matter and billed back, not lost in office expense.
Partner draws and the practice's profit
Draws, salary and distributions recorded the way the entity requires, so the preparer gets it clean and the partners see what the firm really made.
A monthly close the bar would be happy to see.
Trust accounting does not tolerate catching up in December. The rhythm is monthly, and the trust reconciliation is the first item every month.
- Every month
Trust account three-way reconciliation. Operating account reconciled, fees and costs categorized by matter, profit and loss within 20 days of month-end.
- Quarterly
Estimated tax check-in, a look at realization by practice area, and a review of aged receivables so nothing sits past 60 days.
- January
Year-end books closed for your preparer, 1099s to any contractors or experts, trust records organized so a records request is a ten-minute task.
- Any month
Adding an associate, a second office or a new practice area. The chart of accounts is built so growth does not mean a re-do.
Usually one of these two.
Trust accounting alone makes tax-ready books the floor for a firm. The monthly review earns its keep when partners want realization and profitability by practice area.
From $600/ month
For an owner who wants more of the accounting handled. Most people land here.
- Everything in The Basics
- Statements within 15 days, plus a cash-flow statement and a monthly management report
- Tax-ready books, and I work directly with your tax preparer
- Accounts receivable and payable managed and reported
- A monthly check-in on where you stand, and an annual budget
- 1099s handled, up to 20
From $1,800/ month
For an owner who wants a second set of eyes on the numbers and an ongoing financial partner.
- Everything in The Basics and The Foundation
- Statements within 10 days, transactions reconciled weekly
- A financial review call twice a month
- Quarterly budget-to-actual review, KPI and trend analysis
- Working-capital oversight and planning for what is next
- Workflow and automation support
Payroll is an add-on on The Foundation and The Partner, quoted by headcount and filings. All three tiers
What law firms owners ask.
If yours is not here, the 15-minute call is where it gets answered.
Yes, every month, three ways: the bank statement, the trust ledger and each client's balance. That is the reconciliation the rules require, and it is item one on the calendar.
Yes. Clio, MyCase, PracticePanther and the rest produce the billing and trust reports; the books are kept in QuickBooks Online alongside them.
No. I get the books to where your preparer can file from them without a cleanup project. If you do not have a preparer who knows law firms, I can point you to one.
A solo with a trust account still has a trust account. The first tier covers the operating books; the trust work is what moves most firms to the second.
Fifteen minutes, between clients.
Tell me how the firm bills and how the trust account is set up today. I will tell you which tier fits and what it costs.