Legal Bookkeeping Services for Law Firms, Built to Stay Audit-Ready
Legal Bookkeeping Online provides law firm bookkeeping, trust accounting, IOLTA reconciliation, and monthly financial reports for attorneys, solicitors, and sole practitioners. Your books stay clean and audit-ready, and your team gets time back for clients.
We work in QuickBooks Online, Xero, LEAP, Clio, MyCase, and more.
Three-way trust reconciliation
Sample month-end view
All three balances match. Any gap gets traced and fixed before your report goes out.
Reasons to Choose Us
We focus on legal books, so we know how trust funds, retainers, and billing records need to look.
7+ years
Our founder has focused on law firm books and client trust accounts since 2018.
10+ law firms
Solo attorneys and small firms rely on us for their books.
Monthly bookkeeping
A steady monthly cycle, so nothing piles up.
Confidential handling
Client and firm data stays limited to authorized people.
Quick response times
Questions sent by email get clear answers without long waits.
Transparent pricing
Three flat monthly plans, listed on this page.
Talk to a legal bookkeeper about your firm’s books.
Talk to UsLaw Firm Accounting and Bookkeeping Services
Running a firm takes more than serving clients and handling cases. Your books, billing, expenses, payroll, and records need steady attention. Our legal bookkeeping services keep them organized so your team spends less time on day-to-day accounting.
Law Firm Bookkeeping
Regular transaction recording, account reconciliation, and bookkeeping support keep your financial records current.
Trust & IOLTA Accounting
Organized records for client trust accounts, including client ledgers, deposits, withdrawals, and reconciliation support. See also trust account management.
Accounts Payable & Receivable
Stay on top of vendor bills, client invoices, outstanding balances, and incoming payments.
Legal Billing Support
Keep billing records tidy and track billable time, expenses, retainers, invoices, and payments with ease.
Payroll & Partner Accounting
Support with payroll bookkeeping, partner draws, distributions, and other firm-level financial records.
Financial Reporting
Clear profit and loss statements, balance sheets, and other reports that show your firm’s financial position.
Tax Bookkeeping Support
Books that stay organized and ready for your tax professional or CPA.
Catch-Up & Cleanup Bookkeeping
Behind on your books? We organize past transactions, reconcile accounts, and bring your records up to date.
Not sure which service you need? We will help you choose.
Book a Free ConsultationLaw Firm Bookkeeping in QuickBooks, Xero, LEAP, Clio, and More
With years of experience supporting law firms and attorneys, our team delivers accurate, reliable, and confidential bookkeeping built for the legal industry.
QuickBooks Setup & Bookkeeping
QuickBooks setup and bookkeeping for law firms and attorneys. We keep your legal finances accurate through transaction tracking, reporting, and reconciliations.
Xero Bookkeeping
Professional Xero bookkeeping for law firms. From daily transactions to reconciliations and reports, we keep your legal finances organized.
LEAP Bookkeeping
Specialized LEAP bookkeeping that keeps trust accounting, billing, and financial data organized and compliant, with clear reports.
MyCase Bookkeeping
Bookkeeping that keeps your finances in sync with your MyCase data. Clean records mean better billing and smoother reporting.
Clio Bookkeeping & Setup
Clio bookkeeping and setup consulting. We set up Clio for clean trust and operating records, then keep them reconciled.
Smokeball Billing & Accounting
Billing and accounting support for Smokeball users, so trust, billing, and reports stay in order.
Accounting Support for the Tools Your Law Firm Uses
Already have an accounting or legal practice management system? We also work in QuickBooks Desktop, LawPay, and other systems. We work around your current process. If your firm uses a different platform, we adapt to it and keep your records accurate, organized, and ready for review.
Tell us which software your firm uses and get a custom quote.
Get a Custom QuoteFinancial Operation Support Built Around Your Law Firm
Every law firm, solicitor practice, and sole practitioner has different financial needs. Our accounting and bookkeeping services fit your size and your workflow.
Solo Attorneys
Keep your books organized while you focus on your clients and cases.
Small Law Firms
Get reliable monthly bookkeeping, reconciliations, billing support, and reports without building an in-house accounting team.
Boutique Law Firms
Keep records accurate as your firm grows and your accounting needs get more complex.
Growing Law Firms
Get ongoing support as transactions, employees, clients, and billing activity increase.
Multi-Attorney Practices
Keep firm finances, expenses, billing, and reports organized across attorneys and practice areas.
New Law Firms
Start with an organized accounting process and build good bookkeeping habits from day one.
Our bookkeeping services support firms in personal injury, family law, immigration law, criminal defense, business law, real estate law, estate planning, and other legal practice areas.
Serving solicitors in the UK? See our UK bookkeeping page.
See which plan fits your firm.
View PricingOur Law Firm Bookkeeping Process
A simple five-step cycle that keeps your books accurate from the first review to the monthly report.
Initial Review
We review your existing books, accounts, accounting software, and current bookkeeping process. This shows us your firm’s financial setup and the areas that need attention.
Cleanup & Setup
If your books need cleanup, we organize your accounts, review outstanding transactions, and fix bookkeeping issues. We also make sure your setup supports your firm’s ongoing needs.
Monthly Bookkeeping
We handle your regular tasks, including transaction recording, account reconciliations, invoice tracking, and other agreed-upon accounting work.
Financial Review
We review your books regularly for accuracy and consistency. We look for discrepancies, missing information, and issues that need action.
Monthly Reporting
You receive clear, organized reports on your firm’s income, expenses, cash flow, and overall financial position.
Law Firm Bookkeeping Guide
Bookkeeping is the steady work of recording a business’s financial activity. Legal bookkeeping does the same for firms that offer legal services. Law firm accounting also covers trust accounting, IOLTA reconciliation, client billing, and financial reporting. It takes close attention to detail, because small errors in firm books or trust records can lead to big problems. This guide covers the basics.
The Value of Bookkeeping and Accounting for Law Firms
Law firms handle more than legal work. They manage client trust accounts, track billable hours, pay staff, and follow strict financial rules. Without accurate records, even a well-run firm can run into serious trouble.
Client money stays separate
Accurate records keep client funds apart from the firm’s operating money, which most jurisdictions require.
Profit by case and practice area
Good accounting shows income, expenses, and profit by case or practice area, so owners know where to put time and money.
Smooth tax filing and clear reports
On-time bookkeeping lowers the risk of penalties and gives partners and stakeholders reports they can trust.
Three benefits of proper law office bookkeeping
- Tracks the firm’s cash flow
- Supports compliance with your state bar, SRA, or other regulator’s rules
- Increases profitability and helps the firm grow
Legal Accounting vs. Legal Bookkeeping
Legal Bookkeeping
- Recording and monitoring daily financial transactions
- Checking the accuracy of records
- Reconciling operating and trust accounts
- Managing payables, receivables, and payroll entries
- Keeping the books current
Legal Accounting
- Creating financial statements
- Giving insights and building financial plans
- Supporting compliance with regulator rules
- Analyzing the firm’s financial stability
- Preparing tax-ready reports
Types of Legal Accounting
These are the main types of accounting a legal bookkeeper needs to know.
Trust Accounting
A trust account holds client funds in trust. Trust account management keeps those records clean. The money belongs to the client, not the firm. A law firm must not:
- Use the funds for firm expenses.
- Mix firm money into the client trust account.
- Withdraw funds for any reason unrelated to the client’s legal matter.
IOLTA
IOLTA stands for Interest on Lawyers’ Trust Account. It holds small or short-term client funds, such as settlements and retainers. The interest does not belong to the firm. It usually funds legal aid programs. The firm must also move earned fees out of the trust account when they are earned. Rules vary by state. Learn more about our IOLTA trust accounting services.
Double-Entry Accounting
Every transaction gets two entries, a debit and a credit. The entries feed a balance sheet of assets, liabilities, and equity. Both sides must always be equal, which makes errors easy to spot.
Three-Way Trust Reconciliation
This check compares three records at least monthly, or on the schedule your regulator sets. It catches problems early. Software like LEAP, Clio, and QuickBooks Online makes it faster.
The three parts of a three-way reconciliation
Trust bank statement
Issued by the bank, it shows the money in the trust account. Report any bank error right away.
Trust ledger
Your own record of the total trust money. It must match the bank statement after outstanding items are accounted for.
Client ledgers
Each client’s balance. Together they must equal the trust ledger and the bank statement.
Client Money Flow in a Law Firm
This is the usual path of client money. Rules vary by state, so check your bar’s requirements.
Client pays
A retainer or settlement arrives.
Trust deposit
Funds go into the trust account and the client ledger.
Fee is earned
Work is done and the amount is not in dispute.
Fee moves out
The earned fee moves to the operating account.
Commingling vs. Conversion of Client Funds
Most state bars treat both as violations, and both are avoidable with separate accounts, clear client ledgers, and regular reconciliations.
Commingling
Mixing client money with firm money in the same account.
Conversion
Using client money for the firm’s own purposes.
A Sample Chart of Accounts for a Law Firm
A clear chart of accounts keeps firm money and client money apart in your reports. This simple layout is a common starting point.
Assets
- Operating bank account
- Trust bank account (IOLTA)
- Accounts receivable
- Client costs advanced
Liabilities
- Client funds held in trust
- Accounts payable
- Payroll liabilities
Equity
- Partner capital
- Partner draws
Income
- Legal fees by practice area
- Reimbursed client costs
Expenses
- Salaries
- Rent
- Software
- Insurance
- Bar dues
- Marketing
Outsourced vs. In-House Law Firm Bookkeeping
Firms can hire a bookkeeper on staff or outsource the work to a legal bookkeeping service. The right choice depends on firm size, transaction volume, and budget.
Outsourced legal bookkeeper
In-house bookkeeper
Legal Bookkeeping Best Practices
Bookkeeping can feel stressful for busy lawyers. These habits make it easier.
Plan your budget
Compare revenue and profit often. Know your income and expenses, then set budgets that keep cash flow healthy.
Maintain every bank account with care
IOLTA, savings, and checking accounts each have their own rules. Follow all of them.
Keep accounts separate
Never mix firm money with trust funds. Use the trust account only for trust activity.
Track every expense
Review your records often and log small costs too. They add up.
Watch the market
Follow legal industry trends and review your financial statements before you plan your next move.
Use automation
Legal practice management software cuts manual entry and catches errors early.
Get professional help
Lawyers should spend their time practicing law. Hand the books to an experienced legal bookkeeper through our legal bookkeeping services.
Want these habits handled for you?
Talk to UsLegal Bookkeeping Mistakes to Avoid
Touching trust funds
Using client money for firm needs is against the law. Use the trust account as little as possible, review it often, and use software that flags odd transactions.
Entering wrong data
One extra zero can throw off a whole report. Legal practice management software reduces data entry errors.
Mixing up revenue and income
Revenue is the total money your firm earns from client work. Income is what is left after you subtract all expenses.
Accounting Terms Every Law Firm Should Know
These terms help you read financial reports and talk clearly with your bookkeeper or accountant.
Owned and Owed
- Assets
- Everything your firm owns that has value, like cash, equipment, and accounts receivable.
- Liabilities
- Debts or obligations your firm owes, like loans, unpaid bills, or taxes.
- Equity
- The value left after you subtract liabilities from assets. For partners, it often shows ownership share.
Money In and Out
- Revenue
- Money earned from client work before expenses.
- Expenses
- Costs of running the firm, such as salaries, rent, utilities, and software.
- Cash Flow
- Money moving in and out of the firm. It shows how easily you can cover expenses.
Client and Billing Terms
- Billable Hours
- Hours worked on client matters that can be charged to clients.
- Retainer
- An advance payment from a client for future legal services.
- Trust Account
- A special account that holds client funds apart from firm funds.
Payments and Reports
- Accounts Receivable (A/R)
- Money clients owe for services already provided.
- Accounts Payable (A/P)
- Bills the firm still needs to pay.
- Profit and Loss Statement (P&L)
- A report of revenue, expenses, and profit for a set period.
- Balance Sheet
- A snapshot of assets, liabilities, and equity on one date.
Want an expert to keep your trust accounts compliant?
Book a Free ConsultationLaw Firm Bookkeeping Pricing and Packages
Pick the plan that fits your firm. Every plan includes trust reconciliation and email support.
| Features | Essential Compliance$325/month | Advanced Compliance & Insight$650/month | Premium Compliance & Advisory$1,200/month |
|---|---|---|---|
| Monthly Bank Reconciliation (Operating & Trust) | ✓ | ✓ | ✓ |
| 3-Way Trust Reconciliation | ✓ | ✓ | ✓ |
| Trust Ledger Maintenance | ✓ | ✓ | ✓ |
| Financial Reports (P&L & Balance Sheet) | ✓ | ✓ | ✓ |
| Client Queries Answered via Email | ✓ | ✓ | ✓ |
| Catch-Up / Cleanup (Up to 6 Months) | – | ✓ | ✓ |
| Bookkeeping in Legal Software (Clio, LEAP, Smokeball, MyCase, etc.) | – | ✓ | ✓ |
| Audit-Ready Trust Reports | – | ✓ | ✓ |
| Custom Chart of Accounts & Class Tracking | – | ✓ | ✓ |
| Monthly Review Meeting | – | ✓30 min | ✓Extended |
| Weekly Reconciliations / Updates | – | – | ✓ |
| Compliance Checklists & Audit Coordination | – | – | ✓ |
| Cash Flow, KPI & Advisory Reports | – | – | ✓ |
| Multi-Entity Management (LLC / S-Corp + IOLTA) | – | – | ✓ |
| Strategy Calls | – | – | ✓Bi-weekly |
| Book Now | Book Now | Book Now |
Need a one-time project instead of a monthly plan? See our one-time service packages.
Not sure which plan fits? We will help you pick.
Get a Custom QuoteYour Firm’s Financial Information Stays Confidential
Your firm’s financial records contain sensitive information that deserves careful handling. We follow secure processes to protect your data and keep your accounting information available only to authorized people.
Secure Document Sharing
Share financial documents and records through secure channels that reduce unnecessary exposure.
Controlled Access
Access to financial information is limited to authorized team members based on their role.
Confidential Financial Records
We treat your firm’s financial records, client-related information, and accounting data as confidential.
Secure Communication
We use sound security practices when we discuss your books, transactions, and financial information.
Data Protection Procedures
Our processes help protect records from unauthorized access, loss, and improper handling.
Your firm’s financial information is handled with the care, confidentiality, and attention to detail it requires.
Client Reviews of Our Law Firm Bookkeeping Services
I recommend Marufa Akter. I retained her to ensure my client trust accounting was compliant with my obligations under the California State Bar Rules. Marufa has a lot of experience in this technical accounting area. I am pleased with the quick responses I received to my communications and the quality of the services she performed. She has the experience one needs to ensure a law firm’s trust accounting complies with the relevant rules.
Galen GentryDivorce & Family Lawyer
I highly recommend Marufa Akter and the team Legal Bookkeeping Online, who has been an invaluable legal bookkeeper for Zuhair Estate Solutions. Her expertise in bookkeeping, attention to detail, and thorough understanding of financial processes have greatly streamlined our operations. Marufa is highly reliable, and we are pleased to continue working with her as we grow.
Zuhair MeraliZuhair Estate Solution
Highly recommend her for all bookkeeping needs. Marufa is an expert in bookkeeping and we are glad she came on board to help manage our books. It was a daunting task and she performed it with ease. She is also responsive and communicates well. I will be working with her again soon.
Hun-Lin LaiLai & Turner Law Firm PLLC
Join the law firms that trust us with their books.
Get StartedAbout Legal Bookkeeping Online
Legal Bookkeeping Online was founded in 2023. We offer outsourced bookkeeping services designed for attorneys, solicitors, and law firms, and we understand the financial needs of legal practices, including trust accounting, client billing, and compliance with legal industry standards.
Our experienced team works in trusted software like QuickBooks, Xero, and LEAP to deliver accurate, organized, and audit-ready financials. Whether you are a solo practitioner or run a growing firm, we give you reliable support so you can serve your clients with confidence.
Our mission
To take bookkeeping off the plate of legal professionals with accurate, confidential, and clearly explained financial work.
Our vision
To be the trusted bookkeeping partner for legal professionals worldwide, empowering law firms of all sizes to achieve financial integrity and long-term success with expert, industry-specific support.
Meet the Team
Marufa Akter
Founder, Legal Bookkeeping Strategist, Trust Accounting Specialist
Marufa Akter is an experienced financial professional with over 15 years of expertise in legal bookkeeping, trust accounting, and law firm compliance. She began her career in banking in 2009, gaining hands-on experience in international trade, compliance, and financial risk management. In 2018, she moved into freelance bookkeeping after spotting a clear need in law firm financial operations.
Samia Dowla
Managing Partner
Samia Dowla holds BBA and MBA degrees and has worked in telecommunications, banking, customer service, academia, and business management. Her roles include Banglalink, Standard Chartered Bank, Nokia Care, a management lecturer post, and business manager at Codemen Solutions. As Managing Partner of Legal Bookkeeping Online, she leads business development.
Work with a team that knows law firm books.
Contact UsFrequently Asked Questions
Trust Accounting and Compliance
Do you handle trust and IOLTA accounting?
Yes. We maintain trust ledgers and client ledgers, record deposits and withdrawals, and complete three-way trust reconciliation as part of every plan.
Is an IOLTA account the same as a client trust account?
Not always. IOLTA is one type of pooled client trust account. It holds small or short-term client funds, and the interest goes to legal aid programs. Larger or longer-term funds usually go into a separate trust account that earns interest for the client. Rules vary by state.
Do law firms need three-way reconciliation?
Yes. Three-way reconciliation compares your trust bank statement, trust ledger, and client ledgers. All three must match. Most state bars require regular reconciliation, and we complete one under every plan. Confirm your exact rule with your bar.
Is monthly reconciliation enough for a trust account?
Monthly is the minimum for most state bars. Firms with many deposits and payments often reconcile more often. Our Premium plan includes weekly reconciliations. Check your bar’s rule for the exact schedule.
Can a law firm put its own money in a trust account?
Generally no. Mixing firm money with client money is called commingling. Many states allow a small amount of firm money to cover bank fees. Earned fees should move to the operating account promptly. Check your state’s rule.
Can trust account errors lead to bar discipline?
Yes. A shortfall or missing record can trigger a bar inquiry, even when the cause is a clerical mistake. Fix the error quickly, document the fix, and ask your bar about reporting duties. We provide bookkeeping, not legal advice.
Do you follow my state bar’s trust accounting rules?
We build trust records and reports to match the rules your bar or regulator sets. Rules differ by state and country, so we confirm your requirements during the initial review.
Do you work with UK solicitors?
Yes. We support solicitors and law firms in the UK, including client account reconciliations. SRA rules call for regular reconciliations, at least every five weeks, so confirm the current rule with the SRA. See our UK bookkeeping page.
Software and Services
Which software do you work in?
We work in QuickBooks Online, QuickBooks Desktop, Xero, LEAP, Clio, MyCase, PracticePanther, Smokeball, and LawPay. If you use another system, we can work around your current process.
Can a law firm use QuickBooks for trust accounting?
Yes, with limits. QuickBooks Online can hold a trust bank account and a trust liability account. Tracking each client’s balance takes careful setup, so many firms keep client ledgers in Clio, LEAP, or MyCase. We set up QuickBooks for law firms and reconcile it with your practice management software.
Does Clio replace a bookkeeper?
No. Clio records time, billing, and trust activity. A bookkeeper still reconciles the bank accounts, reviews the entries, and prepares financial statements. We offer Clio bookkeeping and setup consulting.
Is legal bookkeeping different from regular bookkeeping?
Yes. Legal bookkeeping adds trust accounting, client ledgers, three-way reconciliation, retainer and cost tracking, and bar rule compliance. Many general bookkeepers do not handle these tasks.
Can you fix books that are months behind?
Yes. Our Advanced and Premium plans include catch-up and cleanup for up to 6 months. For a longer backlog, request a custom quote. See our backlog cleanup service.
Do you prepare tax returns?
We offer Form 1065 tax return preparation for law firm partnerships. For other returns, we keep your books organized and ready for your CPA.
Do you replace my CPA or tax professional?
No. We keep your books accurate and organized so they are ready for your CPA or tax professional.
Do you handle more than one trust account or entity?
Yes. Our Premium plan includes multi-entity management, such as an LLC or S-Corp plus an IOLTA account. Share your setup in a custom quote request.
Pricing, Security, and Getting Started
Is law firm bookkeeping priced per month or per hour?
Pricing is a flat monthly fee. Essential Compliance is $325 per month, Advanced Compliance & Insight is $650 per month, and Premium Compliance & Advisory is $1,200 per month. For a one-off project, see our one-time service packages.
Is outsourcing law firm bookkeeping worth it?
For many firms, yes. You pay a flat monthly fee instead of a salary, and a specialist handles reconciliations and reports. Lawyers then spend more hours on billable work. A large firm with daily transaction volume may still prefer an in-house hire.
Is my firm’s financial data safe with you?
We share documents through secure channels and limit access to authorized team members. We treat all firm and client-related financial data as confidential.
Do you need access to my bank accounts to start?
We ask for bank statements for your operating and trust accounts, plus access to your accounting software and practice management system. You share them through secure channels.
Do you work with solo attorneys?
Yes. We support solo attorneys, small firms, boutique firms, and multi-attorney practices.
Is Legal Bookkeeping Online an established firm?
Legal Bookkeeping Online was founded in 2023. Our founder, Marufa Akter, has over 15 years of finance experience and has focused on law firm bookkeeping since 2018.
Do you offer a free consultation?
Yes. Book a free consultation through our contact page. We review your books, software, and goals, then recommend a plan.
Still have a question? Send it to our team.
Ask a QuestionGet a Custom Quote
Tell us about your firm, your software, and the state of your books. We reply by email with next steps.
