Law Firm Bookkeeping

At Chief Bookkeeping Officer, we’ve managed bookkeeping for law firms for years. We understand the way money moves through a firm, from IOLTA to operating, from IOLTA to vendor, and from IOLTA back to client. These are everyday transactions we handle across contingency-based practices, flat-fee firms, and hybrid models.

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What Our QuickBooks Online Bookkeeping Includes

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• Bank and Credit Card Reconciliations – Monthly reconciliation of all operating, savings, trust, and credit accounts to ensure accuracy and completeness.

• Transaction Categorization – Classification of all business transactions, including income, expenses, reimbursements, and transfers, using your firm’s customized chart of accounts.

• Financial Reporting – Preparation and delivery of monthly Profit & Loss and Balance Sheet reports for each reporting period.

• Review and Quality Control – Internal review of all reconciliations and reports by a senior bookkeeper or CBO to maintain consistency and compliance.

• CPA and Tax Coordination – Collaboration with your CPA or tax preparer as needed to support filings, journal entries, and year-end adjustments.

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Built for the Way Law Firms Operate

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Our bookkeeping process is built around the specific needs of legal accounting. We are fluent in the rules of trust accounting, and we maintain IOLTA ledgers directly within the books through properly structured liability accounts. Each month, we make sure your trust transactions stay separate, accurate, and fully reconciled with your IOLTA statements.

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Beyond trust accounting, we understand how to handle the unique forms of income that law firms generate. Contingency revenue, retainers, and flat fees each have their own timing and recognition nuances, and we structure your books to reflect those correctly. We also know how to keep case costs, settlement proceeds, and insurance disbursements off your profit and loss until the right moment, keeping your financials compliant and clear.

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QuickBooks Online Configured the Right Way

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QuickBooks Online is the backbone of our bookkeeping system. We tailor it for legal practices, setting up accounts, classes, and locations that mirror how your firm operates. We also understand the ecosystem of software your firm might use, such as Clio, MyCase, Casepeer, or FileVine, and we help align those tools with your accounting workflow so that data flows correctly between your client matters and your books.

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When we set up your chart of accounts, we build it for clarity, separating reimbursable client costs from firm expenses, mapping settlement deposits to the balance sheet, and ensuring your reports reflect the way you actually manage cases.

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Capable of Handling Volume

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Many law firms deal with high transaction volume, especially those with multiple attorneys or large case management teams. We are comfortable handling firms with complex structures, multiple authorized cardholders, and heavy transaction activity. Our internal systems are designed to keep up, ensuring that no matter how busy your firm gets, your books stay accurate and current.

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Bookkeeping That Scales With You

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Whether your firm runs on retainers, contingency, or a mix of both, our QuickBooks Online bookkeeping service adapts to your needs. It is the foundation that supports everything else we do, from monthly financial reporting to 3-way IOLTA reconciliations, and it keeps your operations running smoothly behind the scenes.

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For firms managing client trust accounts, our IOLTA 3-Way Reconciliation Service pairs seamlessly with this engagement, ensuring every client ledger and liability balance stays in sync with your trust bank records.

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​Partner with one of our CBOs and let our team handle your firm’s bookkeeping and IOLTA 3-way reconciliation each month so you can stay focused on your clients. Schedule a consultation below or call us at 213-286-7502.