Trust accounting and compliance, handled.
IOLTA reconciliation, three-way matching, audit preparation, and the documentation that holds up to state bar review. Trust accounting isn’t something we add on, it’s something we build the rest of your bookkeeping around.
What we handle for your firm
Trust accounting is where law firm financials get specific, and where mistakes get expensive. State bar reviews, ABA guidelines, and IOLTA program requirements vary by jurisdiction but the underlying rules are unforgiving: client funds stay separate, every dollar is accounted for, and the records are ready when someone asks to see them.
IOLTA reconciliation. Three-way reconciliation every month: bank statement to trust ledger to individual client ledger. Discrepancies caught and resolved before they become problems.
Regulatory filings. Annual IOLTA reports, state bar disclosures, and any jurisdiction-specific filings your firm is required to submit. Done on time, every time.
Audit preparation. Whether it’s an internal review, a state bar audit, or due diligence for a partnership
change, we keep your trust accounting documentation in a state that holds up to scrutiny. No scrambling to reconstruct records under pressure.
Risk assessments. Quarterly reviews of how trust funds are being handled, flagging anything that creates exposure, and recommending process
changes when needed.
Why We're Different
Every state bar handles IOLTA slightly differently. ABA Model Rules give the framework, but state-specific rules govern the details: what gets deposited, what stays in operating, when interest gets remitted, how to handle disputed funds. We work only with law firms, which means we keep up with the rule changes, the audit trends, and the common failure modes. Most trust accounting violations aren’t fraud, they’re bookkeeping errors that compounded over time. Our job is to make sure those errors don’t happen, and if they already have, to fix them before someone else finds them.
How It Works
- Compliance review. Free assessment of your current trust accounting setup, including how reconciliations are being done, what records exist, and
where the gaps are. - Cleanup if needed. If past reconciliations are missing or incomplete, we rebuild them. If client ledgers are out of sync with the trust account, we
resolve the discrepancies. - Monthly rhythm. Three-way reconciliation every month, documented and filed. You see the reconciliation when it’s complete, sign off, and move on.
- Ongoing monitoring. Quarterly risk reviews, annual filings handled, and a flag system for anything that needs your attention before it becomes a
compliance issue
Client Success Stories
Frequently Asked Questions
What is IOLTA?
IOLTA stands for Interest on Lawyers’ Trust Accounts. It’s the pooled trust account most law firms use to hold short-term client funds (retainers, settlement proceeds, advance fees) that aren’t yet earned. Interest on the account is remitted to your state bar foundation, which uses it to fund legal aid. IOLTA compliance is regulated state-by-state and reviewed during bar audits.
What's three-way reconciliation and why does it matter?
Three-way reconciliation matches three records against each other every month: the trust bank statement, the trust account ledger in your accounting system, and the sum of individual client ledger balances. All three should agree to the penny. If they don’t, something is wrong, and most trust account violations trace back to a missed or skipped reconciliation.
We've never been audited. Do we still need this?
Yes. State bars audit on a rotating or complaint-driven basis, and the consequences of failing an audit (or having a client funds discrepancy discovered any other way) range from required remediation to suspension. Clean trust accounting is risk management, not paperwork.
What if our trust account is already a mess?
We’ve seen most variations of “a mess.” Missing reconciliations, mixed funds, ledgers that haven’t been kept, interest not remitted properly. Cleanup is a defined service: we review what’s there, document what we find, rebuild the records, and put a clean process in place going forward.
How does this work with our bookkeeping?
Trust accounting compliance works best when it’s integrated with the rest of your bookkeeping, which is why we offer it alongside our bookkeeping service. If you have a different bookkeeper handling operating books, we can still handle trust accounting compliance separately, but the cleanest setup is when everything runs through one place.
How much does this cost?
Compliance work is priced based on the size and activity of your trust account, the complexity of your client ledger, and whether cleanup is required before we start. We’ll cover specifics on the discovery call.
Ready for Comprehensive Compliance?
Schedule a free consultation today by clicking the button below.