How it runs for law firms and solo practitioners
Every step is completed by the dedicated accountant and checked by the team lead under Two-Tier Review, and the partners receive statements plus a short close note within five business days.
What is month-end close outsourcing?
Month-end close outsourcing means an external accounting team performs the steps that turn a month of transactions into finished financial statements: reconciling every account, posting accruals, prepaids and depreciation, checking cut-off, reviewing and locking the period. You keep your software and your accountant. The provider runs the checklist on an agreed calendar and hands you reviewed statements.
What we handle for law firms and solo practitioners
- Prepare the three-way trust reconciliation as the first close step
- Reconcile costs advanced paid, billed and collected for the month
- Accrue or disclose unbilled time and work in progress by attorney
- Post partner draws, distributions and guaranteed payments to equity, not expense
- Sign off each CloseTrack step with maker-checker review before release
The KPI that matters here
Both the operating close and the trust reconciliation package signed off within 5 business days of month-end.
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
Why is the trust reconciliation the first step in your close?
Because it has an external deadline and a professional consequence, while the operating close only has an internal one. Preparing the three-way reconciliation first gives the attorney the most time to review, question and sign it before the month runs on. It also surfaces any misposted trust item before it flows into the operating figures.
How do you treat partner draws in the close?
Draws and distributions are posted to partner equity or capital accounts, and guaranteed payments are shown as the firm's accountant directs, never buried in salaries or general expense. The close note shows each partner's draws to date against the agreed schedule. Your CPA confirms the tax treatment; we keep the ledger consistent with it.
Do you report work in progress at close?
Yes, unbilled time and unbilled costs advanced are reported by attorney and matter at every close. Most firms keep cash-basis books for tax and do not book WIP as revenue, so we disclose it in the close note rather than posting it. Where the firm reports on an accrual basis, we post it as your accountant directs.
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