Bookkeeping for Law Firms: Compliance, Trust Accounting, and Profit Visibility
Law firms operate under strict financial rules – from bar association trust account compliance to client reimbursement tracking. Whether you’re a solo attorney or managing partners across multiple states, having accurate, compliant, and court-ready books isn’t optional – it’s mandatory.
Download Our Free Brochure →RemoteBooksOnline provides legal bookkeeping services that go beyond basic expense tracking. We offer trust account reconciliation, court cost recovery, time-based billing support, and CPA-reviewed monthly reporting – all at a flat monthly rate.
Why Legal Bookkeeping Isn’t Like Other Businesses
Legal bookkeeping requires specific handling of:
- Client Trust Accounts (IOLTA/IOLA): Must be reconciled separately from firm operating accounts
- Retainer Usage Tracking: Funds held vs. earned fees
- Cost Advances: Proper classification of filing fees, expert witnesses, mileage, etc.
- Fee Allocation: Contingency-based earnings, disbursements, and court-approved settlements
- Billing Methodologies: Flat rate, hourly, or hybrid legal billing models
Without proper tracking, you risk bar audits, client disputes, and malpractice exposure.
What’s Included in Our Law Firm Bookkeeping Services
| Service Area | What We Provide |
|---|---|
| Trust Account Reconciliation | 3-way reconciliation for IOLTA/IOLA trust accounts |
| Chart of Accounts Setup | Legal-specific GL mapping for matter-based tracking |
| Operating Expense Tracking | Categorization of firm costs, payroll, subscriptions |
| Revenue Tracking | Hourly, flat fee, contingency – all supported |
| Client Cost Recovery | Entry of court fees, expenses, and reimbursements by matter |
| Retainer Balance Management | Distinction between earned and unearned income |
| CPA Review & Financials | Monthly P&L, Balance Sheet, Cash Flow – all CPA-reviewed |
We build your accounting infrastructure to match ethics requirements, tax needs, and internal accountability.
Test Case: Multi-State Immigration & Litigation Firm
A fast-growing immigration firm with 4 locations across 3 states needed help reconciling 3 trust accounts, handling mixed retainer revenue, and preparing monthly reports for partner review and tax compliance.
What we did:
- Reviewed and cleaned up 12 months of trust and operating account activity
- Created matter-specific chart of accounts in QuickBooks Online
- Set up recurring CPA-reviewed reporting for partners
Outcome:
They passed their next bar audit with zero flags and shifted in-house admin hours to billable client work.
Download Our Free Brochure →FAQs
Do you support IOLTA or IOLA trust accounting?
Yes – we provide 3-way reconciliations and ensure full separation between client and firm funds.
Can you work with Clio, PracticePanther, or legal CRMs?
Yes. We can receive exports or reports from your legal software and match them against QuickBooks or Xero.
Do you provide tax services too?
We focus on bookkeeping only, but your tax CPA will receive clean, reconciled financials each month.
Do you support contingency-based firms?
Yes – we support flat fee, hourly, hybrid, and contingency models.
Can we track expenses per matter or client?
Absolutely. We configure your books to allow reporting by matter, case, client, or partner.
Need a CPA-reviewed look at your books? Our Virtual Bookkeeping & CPA Review service ensures accuracy and compliance—all done remotely for your convenience.
If you’re behind on your books, our catch-up bookkeeping services can help you get current fast-no stress, no mess.
Want to streamline your accounting and focus on growth? Our bookkeeping outsourcing service handles your financials efficiently—accurate, cost-effective, and tailored to your business.
Stay Compliant. Stay Focused on Your Cases.
We handle the books – trust, operating, and partner-ready reports – so you can focus on winning for your clients.
