Industry · Law firm accounting
Law firm accounting that keeps trust money exactly where it belongs.
Law firms hold client money — and that single fact changes the books. Funds in IOLTA or client trust accounts must stay segregated from operating cash, tracked on a per-client ledger, and reconciled three ways, while retainers are unearned until the work is performed. Commingling and reconciliation gaps are a leading cause of bar discipline. TechBrot’s team, led by a Certified QuickBooks ProAdvisor, keep client funds segregated, maintain per-client ledgers, run three-way reconciliation, and track earned-versus-unearned fees — so your trust books are clean and your operating books are matter-accurate. We do the books; your CPA files. Independent firm, not affiliated with Intuit Inc.
Law firm accounting carries an obligation ordinary bookkeeping doesn’t: client money. Funds held in IOLTA or client trust accounts must be segregated from the firm’s operating money, tracked on a per-client ledger, and reconciled three ways — the trust bank balance, the trust liability on the books, and the total of every client’s ledger all agreeing. Add earned-versus-unearned retainers, client cost advances, and matter-level profitability, and generic bookkeeping falls short, with trust errors a leading cause of bar discipline. TechBrot’s team, led by a Certified QuickBooks ProAdvisor, maintain trust and operating books, perform three-way reconciliation, track retainers and matter profitability, and deliver financials your CPA can file from. The full law-firm summary is below.
Maintained by TechBrot Inc., an independent firm — not affiliated with Intuit Inc. We maintain trust records and reconciliation; the firm and its attorneys retain professional responsibility for state-bar trust compliance, and we coordinate with your CPA or EA, who files. Not legal or bar-compliance advice.
Law firm accounting, in five questions.
Why is law firm bookkeeping harder?
Firms hold client money. IOLTA and trust funds must be segregated from operating funds, tracked per client, and reconciled three ways; retainers are unearned until earned; client costs are advanced and recovered; and trust errors are a leading cause of bar discipline. Standard bookkeeping is not built for any of it.
Do you handle IOLTA and client trust accounting?
Yes. We maintain per-client trust ledgers, keep trust funds segregated from operating funds, and perform three-way reconciliation so the trust bank balance, the trust liability on the books, and the sum of all client ledgers match. State-bar trust rules and compliance certification remain the firm’s responsibility; we maintain the records and reconciliation behind them.
What is three-way trust reconciliation?
Confirming that three figures agree: the trust bank balance, the trust liability on the books, and the sum of every client’s trust ledger. When they match, no client is overdrawn and funds aren’t commingled with the firm’s operating money. Many state bars require it monthly.
Do you track earned vs unearned fees?
Yes. Retainers and advance fees are booked as unearned liabilities until the work is performed, then recognized as income as earned and billed. Client cost advances are tracked so reimbursables are recovered rather than absorbed. We do not file income taxes; we coordinate with your CPA or EA.
What does it cost?
A fixed monthly fee against a written scope — driven by the number of attorneys and matters, whether trust or IOLTA accounting is in scope, the practice-management software in use, and reporting needs. No hourly billing.
Law firm accounting, plainly.
Law firm books carry an obligation ordinary bookkeeping doesn’t: client money. Funds held in IOLTA or client trust accounts belong to clients, not the firm, so they must be segregated from the firm’s operating money, never commingled, tracked on a per-client ledger, and reconciled three ways — the trust bank balance, the trust liability on the books, and the total of every client’s ledger all agreeing. Add earned-versus-unearned retainers, client cost advances, and matter-level profitability, and generic bookkeeping — and most automation — falls short, with trust errors a leading cause of bar discipline.
TechBrot is a bookkeeping and advisory firm led by a Certified QuickBooks ProAdvisor who maintain trust and operating books, perform three-way reconciliation, track retainers and client cost advances, keep partner draws and capital accounts current, and deliver financials your CPA can file from. The trust account stays segregated and inviolate; the operating books carry matter- and practice-area profitability. For firms ready to act on the numbers, advisory adds the judgment layer on top. We maintain the records and reconciliation; the firm and its attorneys retain professional responsibility for state-bar trust compliance, and we coordinate with your CPA or EA, who files. We do not provide legal advice or bar-compliance certification. Independent firm led by a Certified QuickBooks ProAdvisor — not affiliated with Intuit Inc.
Three places firms expose themselves.
Nearly every problem law firm file fails in the same three areas. Knowing which one you’re in tells us where to start — and the first one is the one bar auditors look at.
No three-way reconciliation.
Trust funds commingled with operating money, no per-client ledgers, and a trust account that’s never reconciled three ways — the single most common trigger for bar inquiries and discipline. The fix is segregated trust accounting in QuickBooks, per-client ledgers, and three-way reconciliation with trust bank, trust liability, and client-ledger totals all in agreement every month. We keep the books and the reconciliation right to the standard your bar requires; the compliance obligation itself stays with the firm and its attorneys — we don’t practice law or certify compliance.
Retainers booked as income.
Advance fees and retainers that hit income the day they arrive, before the work is done — revenue overstated, unearned liabilities missing, and books that mislead both you and your CPA. The fix is retainers booked as unearned liabilities and recognized as income only as earned and billed, with client cost advances tracked so reimbursables are recovered. Cash in the bank isn’t income yet; if your books say otherwise, your profit — and your tax picture — are wrong.
No practice-area or matter view.
Income and cost sitting in one firm-wide ledger, so you can’t see which practice areas, matters, or attorneys actually carry the firm — or what your realization and collection rates really are. The fix is matter- and practice-area-level tracking in QuickBooks, so profitability, realization, and collections are visible and decision-ready. Most firms grow the practice areas that feel busy, not the ones that pay; real numbers change that.
Law firm accounting, done by an expert.
Every engagement is scoped to your matters, trust obligations, and software, delivered in your own QuickBooks file by a named Certified ProAdvisor — coordinating with your CPA, who files.
IOLTA & client trust ledgers
Segregated trust accounting with per-client ledgers and three-way reconciliation — trust bank, book liability, and client totals in agreement every month, with an aging so nothing sits stale and every matter’s balance is provable.
Matter-level bookkeeping
Operating books kept strictly separate from trust, with income and cost tracked by matter and practice area — plus partner draws and capital accounts — for true profitability.
Retainers & client cost advances
Earned-versus-unearned fee tracking with retainers held in trust and moved to operating only as billed, and client cost advances recorded and recovered — so revenue is real and reimbursables aren’t absorbed.
Trust & operating cleanup
Untangle commingled funds, rebuild per-client ledgers, resolve stale balances, and reconcile trust and operating accounts to a known-good, CPA-ready baseline.
QuickBooks & legal-software setup
A law-firm chart of accounts, trust and operating structure, and your practice-management and payment software — Clio, MyCase, LawPay and the rest — connected to QuickBooks cleanly.
Practice advisory
As the firm grows, fractional CFO advisory on practice-area profitability, partner compensation, realization and collection rates, and cash flow — the judgment layer above the books.
Connected to how you run the practice.
- QuickBooks Online — trust and operating books in one file
- Clio — matter management and trust ledgers synced to QuickBooks
- MyCase — billing and trust activity reconciled to QuickBooks
- PracticePanther — matter billing and retainer tracking
- Smokeball — practice management synced to the books
- CosmoLex — built-in trust accounting reconciled to QuickBooks
- Rocket Matter — matter billing and trust activity
- LawPay — compliant trust and operating card payments
On different software? If it tracks matters, billing, or trust and pays out to a bank account, we can reconcile it. Ask on a discovery call.
From at-risk trust books to clean, reconciled accounts.
Every law firm engagement follows the same four-phase rhythm — built so trust accounting is sound before anything else moves.
Discovery
A 30-minute call to map your matters, trust obligations, software, and where the books are breaking. No pitch — just the right next step.
Cleanup & setup
If needed, a cleanup to rebuild per-client trust ledgers and separate trust from operating, plus QuickBooks setup for the firm.
Monthly reconciliation
Operating accounts reconciled and three-way trust reconciliation performed every month, with retainers, client cost advances, partner draws, and capital accounts maintained.
Reporting & advisory
A monthly package with matter and practice-area profitability, plus advisory as the firm grows.
Clean books are the start. A stronger practice is the point.
Once trust accounting is sound and your matter-level numbers are real, the question changes from “are we compliant and accurate?” to “what do we do about it?” Which practice areas to grow, how partner compensation should be structured, where realization and collection are leaking, when to hire — the decisions that actually build a firm.
That’s where law firm advisory comes in: a Certified ProAdvisor who knows your numbers turning them into profitability, compensation, and cash-flow decisions. As automation commoditizes basic bookkeeping, this judgment layer is where the value — and the margin — now lives. Trust-account compliance always remains the firm and its attorneys’ professional responsibility. Explore fractional CFO & advisory →
Maintained under a Certified ProAdvisor.
This page reflects how TechBrot actually handles law firm engagements. It is maintained by TechBrot Inc., a Delaware-incorporated independent bookkeeping and advisory firm, and kept current on trust and IOLTA accounting, three-way reconciliation, and earned-versus-unearned fee handling. Where our approach or scope changes, this page is updated. We maintain the records and reconciliation; the firm and its attorneys retain professional responsibility for state-bar trust compliance. We do not provide legal advice or bar-compliance certification.
Certifications
Active Intuit Certified QuickBooks ProAdvisor — Online (L2) and Payroll
Scope
Trust/IOLTA accounting, three-way reconciliation, retainers, matter-level books · income-tax filing coordinated with your CPA/EA
Boundaries
No legal or bar-compliance advice · trust compliance remains the firm and its attorneys’ professional responsibility
Independence
Independent bookkeeping and advisory firm led by a Certified QuickBooks ProAdvisor · Not affiliated with Intuit Inc.
Law firm accounting questions.
Why is law firm accounting different from regular bookkeeping?
Do you handle IOLTA and client trust accounting?
What is three-way trust reconciliation?
Do you track earned versus unearned fees and retainers?
Do you work with Clio, MyCase, and LawPay?
What does law firm bookkeeping cost?
Do you offer advice, or just bookkeeping?
Ready when you are
Get law firm books you can trust.
Book a 30-minute discovery call. A Certified ProAdvisor reviews your trust obligations, where the books are breaking, and the right next step — with a written fixed-fee scope within 3 business days. No pitch. We maintain the records and reconciliation; trust compliance remains the firm’ s responsibility, and your CPA files.