--- title: "Monthly financial reporting for law firms" description: "Monthly financial reporting for law firms: monthly P&L, balance sheet, cash flow, budget-vs-actual and plain-English commentary by business day 7." url: https://ledgerbpo.com/industries/law-firms/financial-reporting/ updated: 2026-09-11 publisher: LedgerBPO (SS Support Network LLC) language: en-US --- # Monthly financial reporting for law firms Monthly financial reporting for law firms should answer the partners' questions in one pack: what was billed and collected by attorney, how realization compares to time recorded, which practice areas carry the overhead, and how much client money sits in trust against the trust liability. Our dedicated accountant produces the operating P&L and balance sheet from QuickBooks Online or Xero, adds billing and collection data from Clio or LeanLaw, and presents the trust balance and liability side by side so they visibly agree. In short: outsourced financial reporting for law firms, delivered monthly by a named accountant and reviewed by a team lead before it reaches you. - Since 2020 - US · UK · CA · AU - Named accountant plus backup - Your software, no lock-in [Get a custom quote](https://ledgerbpo.com/get-a-quote/) [Book a 20-minute call](https://ledgerbpo.com/book-a-call/) Updated September 2026 ## How it runs for law firms and solo practitioners The team lead reviews the pack and the partners receive it with a plain-language note. ## What is outsourced financial reporting? Outsourced financial reporting means a remote accounting team prepares your periodic financial statements and management reports instead of an in-house controller. The team works from your own accounting file, applies a consistent close and review process, and issues a report pack on a fixed date each month. You keep the data, the software and the decisions. ## What we handle for law firms and solo practitioners - P&L by practice area with fee revenue, costs recovered and overhead allocated - Billed, collected and written-off amounts by attorney with realization rates - Balance sheet showing trust bank and trust liability agreeing to the cent - Costs advanced receivable aged by matter - Partner compensation and draw schedules against budget ## The KPI that matters here Reporting pack delivered within 7 business days of month-end with realization and collection rates by attorney included. ## 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](https://ledgerbpo.com/software/quickbooks-online/) - [Xero](https://ledgerbpo.com/software/xero/) - [Bill.com](https://ledgerbpo.com/software/bill-com/) - Clio - LeanLaw - CosmoLex - PracticePanther - LawPay - [All 50 platforms](https://ledgerbpo.com/software/) ## More for law firms and solo practitioners Other services for law firms - [Bookkeeping](https://ledgerbpo.com/industries/law-firms/bookkeeping/) - [Invoicing and billing](https://ledgerbpo.com/industries/law-firms/invoicing-and-billing/) - [Accounts receivable](https://ledgerbpo.com/industries/law-firms/accounts-receivable/) - [Accounts payable](https://ledgerbpo.com/industries/law-firms/accounts-payable/) - [Bank reconciliation](https://ledgerbpo.com/industries/law-firms/bank-reconciliation/) - [Month-end close](https://ledgerbpo.com/industries/law-firms/month-end-close/) - [All law firms services](https://ledgerbpo.com/industries/law-firms/) Financial reporting in other industries - [Marketing agencies & consultancies](https://ledgerbpo.com/industries/agencies/financial-reporting/) - [Auto repair shops & dealerships](https://ledgerbpo.com/industries/auto/financial-reporting/) - [Behavioral health practices](https://ledgerbpo.com/industries/behavioral-health/financial-reporting/) - [Daycares, schools & education](https://ledgerbpo.com/industries/childcare-education/financial-reporting/) - [The full financial reporting page](https://ledgerbpo.com/services/financial-reporting/) ## Frequently asked questions ### Can you report realization and collection rates by attorney? Yes, realization compares billed fees to the value of recorded time, and collection rate compares cash collected to fees billed, both pulled from Clio or LeanLaw and reconciled to the ledger. The pack shows each attorney and practice area monthly and trailing twelve months. Write-down reasons captured at billing explain the gaps. ### How do you present the trust position on the balance sheet? The trust bank balance appears as an asset and the total of client trust liabilities appears as a matching liability, and the two must equal. The pack includes the signed three-way reconciliation as a schedule. This lets partners and the firm's accountant see trust compliance without opening the practice management system. ### Do you provide cash-basis and accrual-basis views? Most law firms keep tax books on a cash basis, so the pack is cash-basis by default with unbilled time and unbilled costs advanced disclosed as memorandum figures. Where partners want an accrual view for management, we add it as a separate schedule. Your CPA decides the tax basis; we report on whichever you use. Next step ## Books closed. Invoices paid. Every month. Tell us what is going on with your books or billing. You will hear from a named person within 1 business day, with a custom quote and a plan for the first close. - Reply from a named person within 1 business day - No setup fee, month-to-month - Your software, your data, no lock-in Start with a custom quote [Get a custom quote](https://ledgerbpo.com/get-a-quote/) [Book a 20-minute call](https://ledgerbpo.com/book-a-call/) Or call [+1-657-777-0006](tel:+16577770006) during US, UK or Australian business hours. --- Source: https://ledgerbpo.com/industries/law-firms/financial-reporting/ · Contact: https://ledgerbpo.com/contact/ · Full site map for agents: https://ledgerbpo.com/llms.txt