LAW FIRMS
Client funds and firm funds are not allowed to touch, and the bar knows it. PFGTAX does bookkeeping for law firms built around trust accounting and IOLTA compliance, so your client funds stay properly separated and your firm’s books are clean enough to survive an audit. Call 888.871.2276 to talk with someone who understands what’s actually at stake here.
Most bookkeepers have never touched an IOLTA account, and it shows the first time a bar audit or a client dispute forces a hard look at the records. Law firm bookkeeping isn’t just tracking revenue and expenses, it’s keeping client trust funds completely separate from your operating account, reconciled down to the individual client, at all times. Mistakes here aren’t just accounting errors, they can put your license at risk.
Trust accounting, done the way the bar requires
Every dollar that sits in your IOLTA or trust account belongs to a specific client, for a specific matter, and has to be tracked that way. We reconcile trust accounts regularly, keep a running ledger by client and matter, and make sure the trust account balance always matches what you actually owe your clients, no more and no less. If your state bar ever asks to see your trust accounting records, you want the answer already sitting in your books.
Operating accounts, kept separate and accurate
Your firm’s own revenue, whether it comes from hourly billing, contingency fees, retainers, or flat fees, needs its own clean set of books, separate from anything touching client funds. We track your firm’s income and expenses by matter or practice area where it’s useful, so you can see what’s actually driving profitability, not just total revenue.
Retainers, contingency fees, and revenue that doesn’t arrive on a normal schedule
Legal revenue rarely shows up in a predictable monthly pattern. Retainers get drawn down over time, contingency fees can take years to resolve, and flat fees need to be recognized correctly. We keep track of earned versus unearned fees and retainer balances, so your books reflect revenue accurately instead of just recording cash as it lands.
What we handle for law firms
- IOLTA and trust account bookkeeping, reconciled by client and matter
- Clear separation of trust and operating funds
- Retainer tracking and earned versus unearned fee recognition
- Contingency fee and settlement recordkeeping
- Revenue tracking by attorney, matter, or practice area
- Monthly bookkeeping, reconciliation, and financial statements
- Catch-up and cleanup bookkeeping to get current
- Books ready for bar audits, tax prep, and partner distributions
Built for firms that cannot afford to get this wrong
Whether you’re a solo practitioner or a firm with multiple partners, trust accounting mistakes carry real consequences beyond a messy spreadsheet. We keep your records precise and defensible, so you can practice law without worrying about what your books would show if someone asked to see them.
FAQ
What is IOLTA and why does it matter for my bookkeeping?
IOLTA stands for Interest on Lawyers’ Trust Accounts, the trust accounts attorneys use to hold client funds. These funds must stay completely separate from your firm’s operating money and be reconciled by client and matter. Bar associations audit these accounts, and errors can lead to serious consequences, so accurate trust accounting isn’t optional.
How do you reconcile trust accounts?
We reconcile trust accounts on a regular schedule, keeping a running ledger for each client and matter, and confirming that the total trust balance matches exactly what’s owed to clients. This is checked consistently, not just once a year.
Can you track retainers and contingency fees?
Yes. We track retainer balances as they’re drawn down and keep contingency fee and settlement records organized, so revenue is recognized correctly rather than just recorded when cash arrives.
Do you work with solo attorneys or only larger firms?
Both. We work with solo practitioners and firms with multiple partners, structuring the books around the size and complexity of your practice.
Can you help if our trust accounting is behind or has errors?
Yes. Cleaning up trust accounting is sensitive but very doable. We’ll reconcile the records, identify and correct discrepancies, and get your accounts current and compliant going forward.
Protect your license and your clients. Call to set up a consultation.
OR email us info@pfgtax.com