Bookkeeping for Law Firms
Your state bar requires a three-way reconciliation of your client trust account. We do it every month, we keep your operating books clean, and the same CPA-led team files your firm’s tax return. Nothing falls between a bookkeeper and an accountant who have never spoken.
Satisfied Clients
Tax Returns Filed
Business Partners
Why Law Firm Bookkeeping Requires More Than a Standard Bank Reconciliation?
In many small and mid-sized law firms, bookkeeping and trust accounting fall to a partner or office manager who already has plenty to manage.
But law firm bookkeeping goes beyond matching bank statements to your books. If you hold client funds, your trust account must also align with each individual client ledger.
That’s why we perform three-way trust account reconciliations, comparing the bank balance, book balance, and total client ledger balances. This helps catch discrepancies early and keeps your trust records accurate and organized.
What’s Included in Our Law Firm Bookkeeping Services
We provide ongoing bookkeeping designed around the financial and trust accounting needs of law firms.
Depending on your firm’s needs, our services can include:
Three-Way Trust Reconciliation
We reconcile your trust bank balance, book balance, and individual client ledgers, with each reconciliation properly documented.
Operating Account Bookkeeping
We handle transaction categorization, bank reconciliations, accounts payable, and accounts receivable to keep your day-to-day books accurate.
Monthly Financial Reporting
Receive clear monthly profit and loss statements and balance sheets so you can easily understand your firm’s financial position and performance.
1099 Tracking
We track qualifying payments to of-counsel attorneys, contractors, and vendors to help keep your records organized for year-end reporting.
Year-End Close & Tax Preparation
We close out your books and prepare your firm’s tax return, all through the same CPA-led team that manages your bookkeeping throughout the year.
Clio, LeanLaw & QuickBooks Online
We work within the systems your firm already uses, including Clio, LeanLaw, and QuickBooks Online, so you don’t have to change the way your firm operates.
IOLTA and Trust Account Reconciliation Requirements by State
State | Trust Account Reconciliation Frequency
Florida — Monthly
California — Monthly
Massachusetts — Every 60 days
North Carolina — Quarterly
Washington — At least quarterly
Trust accounting requirements vary depending on where your law firm practices. Some state bars require monthly reconciliation, while others establish different reconciliation schedules and recordkeeping requirements.
Whatever schedule applies to your firm, we can perform and document your trust account reconciliation accordingly.
Your records remain organized so they are easier to review and produce if questions about the trust account arise.
Fifteen minutes now, or a bar audit later
Tell us how your trust account is handled today, and we will tell you exactly what a compliant monthly routine would involve for your firm. No obligation.
Law firms need more than a bookkeeper who can balance the numbers. You need a team that understands trust accounting, how law firms operate, and what your books need to look like at tax time. Here are four reasons law firms choose our CPA-led bookkeeping services:
Trust Accounting Expertise
We understand the added responsibility that comes with holding client funds, including three-way trust reconciliation and maintaining accurate individual client ledgers.
Books Built Around How Law Firms Operate
From client payments and operating expenses to of-counsel and contractor payments, we keep your books organized around the way your firm actually does business.
Clear Financials for Managing Partners
Get accurate profit and loss statements and balance sheets that make it easier to understand firm performance, manage cash flow, and make informed decisions.
Bookkeeping and Tax Under One Team
The same CPA-led team that maintains your books can prepare your firm’s tax return, reducing year-end cleanup and keeping your financial and tax records connected.
