Bookkeeping for law firms
Monthly bookkeeping for your operating accounts, with trust reconciliations and client balances clearly documented.
Example reconciliation, shown in full below
Law Firms
Services available for law firms
- Monthly bookkeeping for the firm's general account
- Monthly three-way trust reconciliation
- Client disbursements recorded by matter
- Sales tax filing
- Trust schedules and supporting bookkeeping records
Industry knowledge
Bookkeeping considerations for law firms
-
Separate operating and trust records.
Record client funds separately from firm revenue, with each trust transaction assigned to the correct client or matter.
-
Three-way trust reconciliation.
Compare the adjusted trust bank balance, trust journal balance, and total client ledger balances. Investigate and document differences.
-
Law society requirements.
Keep supporting records organized for your firm’s review. Reconciliation and recordkeeping requirements depend on your province.
-
Client disbursements.
Track recoverable costs by matter so your firm can include them in client billing.
-
Outstanding items.
Identify uncleared cheques, deposits in transit, and posting errors for follow-up.
Example reconciliation
The monthly three-way trust reconciliation
See the adjusted trust bank balance, trust journal, and total client ledger balances side by side, with reconciling items listed.
Trust bank statement
Trust journal
Client trust ledgers
Example with illustrative figures. We prepare reconciliations for your firm’s review; your firm remains responsible for compliance with its law society’s requirements.
Software
Software we work with
Practice management
Accounting and receipts
Using something else? Let us know what you use.
Related industries
Discuss your firm’s bookkeeping
Book a free consultation to discuss your operating accounts, trust records, and the support your firm needs.