Expert Bookkeepers for Attorneys: Law Firm and IOLTA Bookkeeping
We offer dedicated Orange County attorney bookkeeping specializing in IOLTA compliance. We focus on the unique issues general bookkeepers might overlook, ensuring accurate, monthly reconciled records that meet every CA State Bar standard.
Dedicated Law Firm Bookkeeping and IOLTA Compliance for Orange County Attorneys
The legal community across Orange County, from the corporate centers of Irvine to the high-stakes firms in Newport Beach, operates under intense financial scrutiny. Unlike standard business accounting, OC law firm bookkeeping is defined by adherence to CA State Bar fiduciary duty. If your firm’s current strategy fails to precisely manage client trust funds or neglects mandatory 3-way IOLTA reconciliations, you are exposed to significant ethical and compliance risks. We provide the dedicated expertise that allows Orange County attorneys to navigate these requirements and gain true financial clarity without the distraction of administrative burden. Here is how specialized oversight differs from the generalist approach:
Law Firm Bookkeeping Articles and Resources
Our Specialized
Law Firm Accounting
Generalized
Bookkeeping
Governed by State Bar Rules
We operate with familiarity with Rules of Conduct 1.15 (Client Trust Accounts) and common jurisdictional requirements, allowing us to proactively structure your books to prevent errors that lead to compliance issues.
May be unfamiliar with the Rules of Conduct regulating the accounting requirements of an IOLTA.
Performs 3-Way IOLTA Reconciliations
We conduct precise, monthly 3-Way IOLTA Reconciliations—matching the bank statement, the trust ledger balance, and the sum of all individual client ledgers to ensure funds are never commingled.
Reconciles the firm's accounts only one-way though the IOLTA must be reconciled 3-ways to be compliant with many state bar requirements.
Manages Advanced Client Costs as "Assets"
We correctly track advanced client costs (filing fees, expert witnesses, etc.) as firm assets until the client reimburses the firm or the case settles. This provides an accurate picture of the firm's true profitability and assets.
Advanced client costs may be immediately expensed therefore affecting the profit and loss instead of the balance sheet by reducing income.
Tracks Retainers as Client and Settlement "Liabilities"
We correctly classify and track all client retainers and fee advances as client liabilities on the Balance Sheet until they are officially earned and transferred, ensuring compliance with Rule 1.15.
Settlements and retainers will become profit and loss affecting transactions if they are not treated as client liabilities therefore increasing or decreasing revenue inappropriately.
Expertise in Contingency Fee Accounting
We specialize in setting up the appropriate accounting structure for contingency fee practices, properly recording and allocating large settlements and firm expense recoveries to prevent unexpected tax liabilities.
The firm's QuickBooks Online book may be set up inappropriately to handle the receiving of settlements and then the disbursement transactions related to settlements especially if the firm experiences a high volume of cases.
Specialized Bookkeeping for Orange County Law Firms and Their IOLTA Accounts
Managing IOLTA compliance and client funds demands a level of precision and consistency that cannot be subjected to the uncertainty of hourly billing. Our specialized law firm bookkeeping is provided on a predictable fixed-fee basis, structured around the complexity of your practice, not fluctuating hours. Plans that include mandatory 3-Way IOLTA reconciliation for Californian trust accounts and full monthly oversight start at:
$699.00 per month
Our fixed monthly fee may change inline with your firm's matter and transaction volume.
Monthly Bookkeeping for Orange County Attorneys
Your firm’s financials stay organized and reconciled each month, giving you clear visibility into performance.
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Dedicated CBO overseeing your support and bookkeeping.
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Every transaction is reviewed and properly categorized.
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All financial accounts are reconciled each month.
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Monthly reporting delivered through Profit and Loss and Balance Sheet statements.
IOLTA 3-Way Reconciliation for OC Law Firms
We help keep your client trust balances accurate, compliant, and fully aligned across your bank statement, trust ledger, and client ledgers.
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Monthly IOLTA 3-Way Reconciliation reports prepared per California State Bar formatting.
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Client ledgers maintained via liability accounts in your book.
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Advanced client costs tracked via asset accounts in your book.
Catch-Up Bookkeeping for Orange County Law Firms
Rebuild your historical financials, clear past inconsistencies, and bring your books current with a reliable starting point for ongoing accuracy.
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Historical transactions reviewed, categorized, and brought current.
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Prior months reconstructed to establish accurate beginning balances.
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Inconsistencies and gaps in financial activity identified and corrected.
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Financial reporting every catch-up month.
Frequently Asked Questions
Attorney bookkeeping for practices based in Orange County, particularly those handling sensitive IOLTA accounts, necessitates a specialized, detail-oriented approach. We provide the compliance-driven expertise demanded by the local OC legal landscape, delivering accurate monthly books, proper three-way trust reconciliations, and reports that are clear and audit-ready. Our team understands the concerns of law firms across the county. Below are the specific questions we frequently address for solo practitioners and mid-sized firms right here in Southern California.
Law firms operate with client trust accounts, retainers, fee splits, and strict compliance requirements. You are not just tracking income and expenses. You are managing fiduciary responsibility, handling client money, and maintaining accounting records that must align with strict ethical rules.
Yes. We are able to perform 3-way IOLTA reconciliations per the California State Bar requirements.
Yes. For law firms, especially those using IOLTA accounts, historical work must sometimes be taken back further so we can obtain accurate balances for a reliable starting point. Once we establish that date, we take the books forward cleanly and consistently.
Yes. We are familiar with California State Bar rules of professional conduct, including Rule 1.15 governing client trust accounts. These requirements are very similar across other jurisdictions as well. We also understand its importance for our attorney clients as they must attest to their compliance of the Rules of Conduct.
Yes. These are all transactions and are treated as such. Many of them affect the balance sheet, but they are still tracked with the same level of detail and accuracy as any other transaction.
This is common. Our engagement process always begins with reviewing the current state of your books, identifying what needs to be adjusted or rebuilt, and then setting up the structure that allows us to take your books forward accurately.
Most of the time, yes. Due to the accounting requirements and the high transaction volume that contingency firms experience, they make up the largest practice area we serve.
Yes. We have done this before. When an attorney receives an inquiry or audit notification from their state bar, securing a bookkeeper proficient in IOLTA 3-way reconciliation along with an ethics attorney to represent them during the process. Preparing for an inquiry is essentially producing accurate bookkeeping and IOLTA trust reconciliations for the requested time period and ensuring your trust records support the activity shown.
We are familiar with many practice management systems and have worked with them frequently. These include Filevine, Clio, MyCase, Casepeer, Smokeball, PracticePanther, Lawmatics, and others.
Monthly support includes monthly bookkeeping, monthly reconciliations, and financial reporting supported by those reconciliations. It is consistent, scheduled, and designed to keep your books and trust accounts organized year round.
We proudly support law firms across all of Orange County, including: Anaheim, Santa Ana, Irvine, Newport Beach, Huntington Beach, Costa Mesa, Fullerton, Mission Viejo, Laguna Beach, San Clemente, Tustin, Orange, Lake Forest, and Yorba Linda.
Law Firm Client Stories
In a competitive market like Orange County, maintaining financial control is critical for both profitability and protecting your professional license. The strict requirements imposed by the CA State Bar mean that trust account management isn't optional, it's foundational. Review our confidential case studies detailing how we partner with law firms in Santa Ana, Anaheim, and throughout OC, transforming unreliable accounting systems into streamlined, compliant books. We provide the peace of mind that allows Orange County attorneys to focus their entire energy on client outcomes.
The Personal Injury Law Firm
Transformation
When I first spoke with the CFO during an exploratory consultation, he struck me as the kind of person who had seen a lot of balance sheets. Smart, direct, composed. But underneath that, there was something else. Not panic, but urgency. The kind of pressure that builds when things have been sliding for a while.
He told me right away that he could not trust the books. This was his first month on the job, and those books were ones he had just inherited. When a CFO says that, it is rarely just about the numbers. It is about what those numbers represent: the culture, the systems, and the people behind them...click here to read more.
It was early September, the heart of corporate tax season.
If you work with CPAs, you know what this month feels like.
The September fifteenth deadline looms large. Entity filings, extensions, and corporate returns all pile up. Most clients did not file in March, so everything converges at once. For most business owners, it is a quiet month. The kids are back in school, the office finds its rhythm again, and life feels manageable. But for CPAs, it is controlled chaos.
Here is something that rarely gets discussed....click here to read more.
Mastering the Business of Law Firms
Deep dive articles and podcast episodes to help you navigate the complexity of law firm bookkeeping for Orange County attorneys.
We walk through ten common, real questions law firm owners have asked during our initial bookkeeping consultations, from IOLTA reconciliation to reporting structure. If you’ve ever wondered how law firm accounting...
Click here to continue reading...
From missing 3-way reconciliations to misclassified trust transfers, small errors can create compliance risks. We walk through five more of common IOLTA mistakes and how disciplined processes prevent them before they happen...
Personal injury accounting isn’t ordinary bookkeeping and not every bookkeeper understands that. Here are the key questions PI attorneys should ask to ensure their trust accounting and financials are done correctly...
An IOLTA is a requirement for many firms and the treatment of the funds it holds are highly regulated. Become familiar with common accounting mistakes for client trusts to prevent them from happening.
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