What is three-way reconciliation and how often is it required?
Three-way reconciliation means three figures must all agree: the balance on your trust bank statement, the total of your firm’s internal trust ledger, and the sum of every individual client’s sub-ledger balance. If all three don’t match, something is wrong and needs to be found before the month closes. New York’s Rule 1.15 does not expressly require a reconciliation today, so monthly is best practice rather than a stated rule. In May 2026 the New York City Bar’s Professional Discipline Committee proposed amending Rule 1.15(d)(1) to require a three-way reconciliation report at least every 60 days, and encouraged monthly reconciliation; it is a proposal, not the rule. On a TechBrot engagement, TechBrot’s signed trust-accounting specialist practice performs it monthly and documents it for your review.
Can a bookkeeper legally handle my trust account?
The mechanical steps — recording transactions, preparing the three-way reconciliation, organizing records — can be delegated to a qualified bookkeeper or ProAdvisor. What cannot be delegated is responsibility: New York holds the attorney, not a software vendor or bookkeeper, accountable for trust-account compliance. So the right model is a trust-accounting specialist who does the reconciliation work accurately and hands it to you to review and approve. That is how a TechBrot engagement works: TechBrot’s signed trust-accounting specialist practice does the work and the documentation, reviewed by a Certified QuickBooks ProAdvisor before delivery, while you retain the professional responsibility the rules require.
How do you keep retainers from becoming a commingling problem?
A retainer is the client’s money until you earn it, so it belongs in the IOLA trust account and moves to your operating account only as you bill against it. Commingling — mixing client and firm funds, or paying operating expenses out of trust — is prohibited by Rule 1.15(a), and it is a violation even when accidental. On a TechBrot engagement, earned and unearned fees are tracked separately, so retainers stay in trust until billed and transfers to operating are clean, documented, and tied to actual work performed.
What happens if my trust account is overdrawn?
Banks that hold New York attorney trust accounts must agree to report dishonored checks and overdrafts to the Lawyers’ Fund for Client Protection under 22 NYCRR Part 1300, so if a check is presented against insufficient funds — even for a single day due to a timing error — a report goes out and you can expect an inquiry that you answer with your records. The way to avoid this is disciplined process: never disburse against uncollected funds, reconcile monthly, and keep client sub-ledgers current. That is the routine TechBrot’s signed trust-accounting specialist practice keeps on your account, which is how timing errors are caught before they become a bar inquiry.
What records does New York’s Rule 1.15(d) require a law firm to keep?
For seven years after the events they record: the records of all deposits to and withdrawals from the trust account and any other account that concerns or affects the practice, identifying the date, source and description of each deposit and the date, payee and purpose of each withdrawal; a record for the special account showing the source of the funds, the people for whom they are held, the amounts, and who received them; copies of retainer and compensation agreements, of statements showing disbursements to or for clients, and of all bills rendered; records of payments to outside lawyers, investigators and others not on staff; retainer and closing statements filed with the Office of Court Administration; and all checkbooks, check stubs, bank statements, prenumbered canceled checks and duplicate deposit slips. Rule 1.15(d)(2) adds that entries must be made at or near the time of the transaction. On a TechBrot engagement, the signed trust-accounting specialist practice keeps the IOLA side of your QuickBooks file to that list, so each item can be produced on request.
Can your bookkeeper sign trust checks or move IOLA money?
No. Under Rule 1.15(e), only a lawyer admitted to practice in New York may be an authorized signatory on a special account, and withdrawals go only to a named payee, never to cash, by check or, with the prior written approval of the person entitled to the money, by bank transfer. The preparer of your books never signs, holds or moves trust money: transfers of earned fees to operating are prepared for your approval and recorded once you make them. That keeps the bookkeeping on one side of the line and the fiduciary duty on yours.
How much does law firm bookkeeping cost in New York?
Monthly bookkeeping for a New York law firm runs $500–$2,500+ per month, fixed-fee against a written scope. Pricing is set by matter volume, how active your trust account is, the number of attorneys, and whether you need practice-area profitability reporting — a solo practitioner with light trust activity is at the lower end; a multi-attorney firm with heavy trust volume higher. We quote a firm number after reviewing your books.
How do we get started?
Start with a free discovery call. We review your QuickBooks file and trust setup remotely, look at how your IOLA reconciliation and client ledgers stand, determine whether you need a cleanup first or can go straight to monthly service, and send a written fixed-fee proposal within 3 business days. Work begins as soon as you approve: your operating books with your senior bookkeeper, and the IOLA reconciliation with TechBrot’s signed trust-accounting specialist practice.