How it runs for law firms and solo practitioners
LawPay or Clio Payments is configured to route fees to operating and deposits to trust with fees charged to the firm. The same design applies for Xero and for firms leaving spreadsheets or QuickBooks Desktop.
What is accounting software setup and migration?
Accounting software setup is the configuration of a new ledger: chart of accounts, tax codes, bank feeds, items, users and apps. Migration is moving existing books from another platform or spreadsheet into that ledger so history, open items and balances carry across. Both end with a file that agrees to the old records and is ready for live posting.
What we handle for law firms and solo practitioners
- Design a chart of accounts with trust bank, trust liability and client-cost receivable
- Set up classes or tracking categories by practice area and attorney
- Connect Clio, LeanLaw or CosmoLex with sync mapping tested and documented
- Configure LawPay or Clio Payments so fees route to operating and deposits to trust
- Migrate open invoices, client ledgers and opening trust balances with a reconciliation
The KPI that matters here
New file live with opening trust and operating balances reconciled and the first synced invoice tested within 3 weeks of kickoff.
Law firms compliance notes
IOLTA and trust accounting (US and Canada)
Client funds sit in a separate trust or IOLTA account with an individual ledger per client, and the firm may never hold its own money there beyond what the rules allow for bank charges. We support the supervising attorney by keeping the client ledgers current, preparing the monthly three-way reconciliation and flagging any negative client balance the same day. We never have signing authority on trust accounts and never move client funds; the attorney approves and executes every transfer.
SRA Accounts Rules (UK)
Firms regulated by the Solicitors Regulation Authority must keep client money separate, reconcile client account at least every five weeks, return client money promptly when there is no longer a reason to hold it, and obtain an accountant's report within six months of the period end unless exempt. We prepare the reconciliations and the working papers for the COFA and the reporting accountant; the firm remains responsible for the client account.
Retainers, earned fees and transfers
An advance fee deposit is a trust liability until the work is done and invoiced. We prepare the transfer schedule showing which earned fees may move from trust to operating after the invoice is issued and any required notice period, and the attorney authorizes the transfer. Revenue is recognized when earned, not when the retainer is received.
Costs advanced and disbursements
Amounts the firm pays on a client's behalf are recorded as a receivable from that client and matter, not as firm expense. In the UK, disbursements need correct VAT treatment depending on whether the firm acted as agent. We track each cost to its matter and confirm the VAT position with the firm's accountant.
Law firms software we work in
- QuickBooks Online
- Xero
- Bill.com
- Clio
- LeanLaw
- CosmoLex
- PracticePanther
- LawPay
- All 50 platforms
More for law firms and solo practitioners
Other services for law firms
Software setup and migration in other industries
Frequently asked questions
Do we need Clio if we already use QuickBooks?
QuickBooks Online alone can hold a trust liability, but it does not track time, matters or per-client trust ledgers well. Clio, LeanLaw or CosmoLex handles matters, billing and client ledgers and syncs to QuickBooks for the general ledger. Most firms with more than one attorney find the pair easier to keep compliant than QuickBooks alone. We set up either arrangement.
How do you set up the trust account in QuickBooks Online?
The trust bank account is created as a separate bank account, with a matching current liability that carries a sub-account or customer-level detail per client. Deposits and disbursements are posted to both, so the bank and the liability always agree. Bank rules are written so nothing from trust can be auto-coded to income.
Can you migrate our old trust ledgers accurately?
Yes, we bring in each client's opening trust balance as of the cutover date, tie the total to the trust bank statement and prepare an opening three-way reconciliation for the attorney to sign. Historical activity stays in the old system for the retention period; the new system starts clean with a reconciled position.
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