How Bookkeeping Services Helped a Law Firm Avoid a $4,500 Tax Penalty

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A solo law firm in New York had been operating without a dedicated bookkeeper for over a year. The attorney was manually logging payments, trust transactions, and business expenses into a spreadsheet but struggled to stay current. When tax season arrived, her accountant refused to file because the books weren’t compliant - especially with IOLTA trust fund requirements.

She reached out to Remote Books Online for legal bookkeeping support.

Our team immediately began a full review and catch-up. We organized her operating and trust accounts, categorized all client disbursements, and produced CPA-ready reports. Trust fund tracking was separated properly, and reconciliations were completed to meet legal compliance standards.

The results:

  • Avoided a $4,500 IRS penalty for late filing
  • Full IOLTA trust compliance established within 4 days
  • Monthly plan set up to track trust and operating accounts going forward
  • Attorney freed from all bookkeeping work - now fully focused on clients

Today, the firm continues to use our bookkeeping services for monthly compliance and year-end prep.

Frequently Asked Questions

Yes - we track client funds separately from operating income and follow legal compliance rules.

Both - we serve solo lawyers, multi-attorney practices, and law firms across the U.S.

Absolutely. We clean up months or years of legal bookkeeping and help firms get CPA-ready fast.

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