How it runs for law firms and solo practitioners
The firm gains controller judgment inside its existing Clio and QuickBooks Online setup without adding a full-time role.
What are outsourced controller services?
Outsourced controller services provide the review layer that sits between bookkeeping and the owner: a senior accountant who checks the close, owns the accounting policies, tests the controls around cash and spending, and explains the financial statements. The controller does not do daily posting. They make sure what was posted is right and documented before anyone relies on it.
What we handle for law firms and solo practitioners
- Review and sign off every operating close and trust package before release
- Set policy for costs advanced, write-downs and fee recognition with the firm's CPA
- Model cash for partner distributions, tax estimates and quarterly draws
- Prepare budget, lender and lease packs with realization trends explained
- Lead the monthly management meeting on billing, collection and overhead
The KPI that matters here
Controller review complete and management meeting held within 10 business days of month-end with any trust exception escalated the same day.
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
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Frequently asked questions
How is controller review different from a bookkeeper for a law firm?
The dedicated accountant records, reconciles and prepares; the controller reviews, sets policy and interprets. For a law firm that includes checking the three-way reconciliation package before the attorney signs, deciding how costs advanced and write-downs are presented, and modeling cash for distributions. Firms between roughly eight and forty attorneys usually need controller hours, not a controller salary.
Can the controller help us with a bar audit or an SRA visit?
The controller ensures the reconciliations, client ledgers and working papers are complete and organized, walks the attorney through what the reviewer will ask for, and answers bookkeeping questions through the firm. We do not represent the firm before a regulator and we give no compliance opinion; the attorney and the firm's accountant remain responsible.
Does the controller prepare our budget and partner distribution model?
Yes, using reconciled billing, collection and overhead data from the ledger and the practice system. The budget is built by practice group with realization assumptions the partners agree, and the distribution model shows cash available after tax estimates and working capital. Your CPA reviews tax figures; the controller keeps the model tied to the actual books.
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