Law Firm Bookkeeping & IOLTA Compliance
Trust accounting basics
- Separate trust (IOLTA) and operating
- 3-way reconciliations: bank, client ledger, trust ledger
- Earned vs. unearned fees; compliant transfers
Matter-level reporting
- Retainers, advances, disputes, chargebacks
- Disbursements with support; audit trail for every transaction
- Partner draws vs. distributions tracked properly
Pricing ranges
- Solo/small: $400-$900/mo
- Growing firm w/ heavy trust: $800-$1,600/mo
- Multi-office: $1,400-$2,500+/mo
Related: Accounting 101 · Cost by State
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FAQs
What is a 3-way reconciliation?
It reconciles the trust bank balance to the sum of client ledgers and to the trust ledger, proving funds are intact and not commingled.
How are retainers handled?
Retainers are client trust funds until earned. Transfers to operating occur only after fees are earned and documented.
What’s the monthly price range?
Most firms fall between $400 and $2,500+ depending on trust activity, matters, and reporting depth.
