Law Firm Bookkeeping & Trust/IOLTA Support

QuickBooks Online Bookkeeping for Law Firms

If your law firm manages operating activity, retainers, client costs, trust accounts, IOLTA activity, or transfers between trust and operating accounts, the books need to keep firm activity separate from client funds.

Bookkeep Boss LLC provides QuickBooks Online cleanup, catch-up, and monthly bookkeeping support for law firms that need organized operating books, trust account support, client ledger activity tracking, and monthly reconciliation workflows.

The work focuses on keeping financial records organized around how the firm operates, including operating activity, trust account activity, retainers, reimbursements, client costs, and records prepared for tax review, CPA or tax professional review, and internal firm review.

Law Firm Bookkeeping Services

The bookkeeping work may include:

• Operating account bookkeeping
• IOLTA and trust account bookkeeping support
• Three-way trust reconciliation support
• Retainer and client ledger activity tracking
• Trust-to-operating transfer review
• Client cost and reimbursement tracking
• Bank, credit card, trust, and operating account reconciliations
• Practice management system activity review when applicable
• Profit & Loss and Balance Sheet preparation
• Supporting reports for monthly and year-end records
• Records organized for use by CPAs, tax professionals, or professional advisors

The goal is to keep the QuickBooks Online file organized so operating activity, trust activity, client funds, and firm activity are easier to review and maintain.

If you are comparing bookkeeping support for your law firm, you can also review our guide on how to choose a law firm bookkeeper before deciding what type of support you need.

When Cleanup May Be Needed First

If your QuickBooks Online file is behind, unreconciled, or trust and operating activity do not agree with supporting records, cleanup or catch-up bookkeeping may be needed first.

Cleanup may be needed when prior months have not been completed, operating accounts are not reconciled, trust balances do not match client ledgers, retainers or reimbursements are unclear, trust-to-operating transfers need review, or client cost activity needs correction.

When cleanup is needed, the process starts with a Bookkeeping Review so the condition of the file can be evaluated before cleanup, catch-up, or monthly bookkeeping is scoped.

Frequently Asked Questions

What does law firm bookkeeping include?

Law firm bookkeeping may include operating account bookkeeping, trust or IOLTA bookkeeping support, retainer activity tracking, client cost and reimbursement tracking, trust-to-operating transfer review, monthly reconciliations, financial report preparation, and records organized for tax or professional review.

What is trust or IOLTA bookkeeping support?

Trust or IOLTA bookkeeping support helps law firms organize trust account activity, client ledger activity, retainers, settlements, cost advances, refunds, and transfers between trust and operating accounts. The goal is to keep client funds and firm operating activity separated in the bookkeeping records.

What if my law firm books are behind or trust activity is unclear?

If the QuickBooks Online file is behind, unreconciled, or trust activity does not agree with client ledgers or bank records, cleanup or catch-up bookkeeping may be needed first. The process starts with a Bookkeeping Review so the condition of the file can be evaluated before the next phase of work is scoped.