· Reviewed by Nimra Khalid
What is law firm bookkeeping outsourcing?
Law firm bookkeeping outsourcing means a remote accountant keeps the firm's operating books: categorizing transactions, posting billed fees and client cost advances from the practice management system, reconciling bank and card accounts and closing each month. For trust or IOLTA accounts the provider prepares the reconciliation workings; the supervising attorney reviews, signs and remains responsible under the bar's rules.
-
Law firm bookkeeping: what we do and how it runs
Law firm bookkeeping outsourcing means a remote accountant keeps the firm's operating books: categorizing transactions, posting billed fees and client cost advances from the practice management system, reconciling bank and card accounts and closing each month. For trust or IOLTA accounts the provider prepares the reconciliation workings; the supervising attorney reviews, signs and remains responsible under the bar's rules.
01 / 06 -
What it is
Law firm bookkeeping outsourcing means a remote accountant keeps the firm's operating books: categorizing transactions, posting billed fees and client cost advances from the practice management system, reconciling bank and card accounts and closing each month. For trust or IOLTA accounts the provider prepares the reconciliation workings; the supervising attorney reviews, signs and remains responsible under the bar's rules.
02 / 06 -
What you get
Operating account books closed every month by a named accountant
03 / 06 -
How it runs
Three-way trust reconciliation prepared for the attorney's signature, never custody
04 / 06 -
Discovery call
A 20-minute call to map your entity, attorneys, practice areas, practice management system, bank and trust accounts, and your bar's reconciliation frequency. We look at a recent trust reconciliation and your open items.
05 / 06 -
A named accountant, a backup and a team lead
Inside your own software, on a fixed close calendar, with a reply from a person within 1 business day. Call +1-657-777-0006 or start a quote.
Get a custom quote 06 / 06
Who it is for
Solo and small firms
One to ten attorneys, an office manager doing the books between client work, and a trust reconciliation that gets done the week before it is due. You want both current every month.
Firm administrators and COFAs
You are responsible for the accounts and need reliable workings prepared on time so review is a review, not a rebuild. A dedicated accountant gives you that every month.
Firms on Clio or LeanLaw
Your practice management system holds fees, costs and trust ledgers but the accounting file never quite agrees with it. One team ties the two together.
What's included
- Operating account categorization of bank and card transactions weekly
- Billed fees, payments and write-downs posted from Clio, LeanLaw or PracticePanther
- Client cost advances tracked as hard and soft costs by matter
- Three-way trust reconciliation workings: bank, trust ledger and client ledgers
- Trust exception list prepared for the supervising attorney's decision
- Partner draws, distributions and capital accounts tracked per agreement
- Payroll journals from Gusto, ADP or your payroll provider
- Credit card, loan and line-of-credit reconciliations monthly
- Referral fees, court costs and expert fees coded to the right matter
- Monthly P&L by practice area or attorney, with plain-English notes
- Year-end package for your CPA or accountant
- UK firms: client account reconciliation workings for the COFA under the SRA Accounts Rules
Deliverables and KPIs
| Deliverable | KPI we report | Cadence |
|---|---|---|
| Operating books closed | Books current within 5 business days of month-end | Monthly |
| Three-way trust reconciliation | Workings prepared for attorney signature on the firm's required cycle | Monthly |
| Trust exceptions | Every unidentified deposit, stale item or negative client balance listed for attorney decision within 1 business day | Weekly |
| Practice management tie-out | Clio or LeanLaw billed, collected and trust balances agree to the ledger | Monthly |
| Financial statements | P&L by practice area and balance sheet issued after second-accountant review | Monthly |
| Year-end package | Adjusting entries, schedules and trial balance ready for your tax preparer | Annually |
KPIs are what we measure and report, agreed per engagement. Service-level commitments are set in your agreement.
How it works
-
Discovery call
A 20-minute call to map your entity, attorneys, practice areas, practice management system, bank and trust accounts, and your bar's reconciliation frequency. We look at a recent trust reconciliation and your open items.
-
Access and reconciliation review
You grant accountant access to your accounting file, Clio or LeanLaw and read-only bank feeds. We agree who the supervising attorney is, the sign-off format, and a cut-over date after reviewing the last reconciled month.
-
Dedicated accountant assigned
A named accountant, a trained backup and a team lead take over the operating books and trust workings. The first month runs in parallel with a full clean-up of unapplied items.
-
Monthly close and attorney sign-off
Each month the operating books close under Two-Tier Review, the trust workings go to the supervising attorney with an exception list, and you receive statements plus a short note on what changed.
Software we work in
How much does law firm bookkeeping cost?
Law firm bookkeeping is priced as a flat monthly fee based on transaction volume, the number of bank, trust and card accounts, and whether trust reconciliation support and practice management tie-outs are in scope. Engagements run month-to-month with no setup fee. Pricing depends on volume and scope, so we send a custom quote within 1 business day.
What moves the quote
- Monthly transaction volume across operating accounts
- Number of trust or IOLTA accounts and client ledgers to reconcile
- Whether Clio or LeanLaw tie-outs and cost-advance tracking are included
- Add-ons such as accounts payable, payroll journals or investor and partner reporting
Market benchmarks
| Market | Typical range | Source |
|---|---|---|
| US | $150 to $1,600 per month; review-backed plans typically $400 to $800 | indinero, RadCity, NerdWallet (2026) |
| UK | £100 to £1,500 per month fixed fee | UK provider pricing surveys (2026) |
| Canada | C$300 to C$2,000 per month; most small firms C$400 to C$800 | Outsource Bookkeeping CA, TheAccTaxCo (2026) |
| Australia | A$300 to A$1,500 per month for a typical small practice | Australian bookkeeping fee surveys (2026) |
Third-party ranges for orientation, not our prices.
Get a custom quote No setup fee. Month-to-month.
Law firm bookkeeping for your industry
Security and compliance
- Read-only bank feeds where your bank supports them; we never move money or sign on any account
- MFA on every login, least-privilege access, an access log per client and an NDA per engagement
- Client names and matter data stay in your systems; no local downloads and no paper
Full control list on the security page and country rules on the compliance page. Certifications are listed only when held.
Frequently asked questions
How much do law firm bookkeeping services cost?
Pricing depends on volume and scope, and we send a custom quote within 1 business day. The main drivers are transaction volume, the number of trust and operating accounts, and whether practice management tie-outs are included. As a market reference, US outsourced bookkeeping runs $150 to $1,600 per month, with review-backed plans between $400 and $800 (indinero, 2026). UK fixed fees range from £100 to £1,500 per month.
Do you handle our trust or IOLTA account?
We prepare the reconciliation; we never hold, move or control client funds. Each month, or on the cycle your bar requires, we prepare the three-way reconciliation of the trust bank balance, the trust ledger and the sum of individual client ledgers, with an exception list. Your supervising attorney reviews, resolves exceptions and signs. Responsibility for the trust account stays with the attorney, as bar rules require.
Do you work inside Clio and LeanLaw?
Yes. We post from Clio, LeanLaw, PracticePanther or similar into your QuickBooks Online or Xero file, and each month we tie billed fees, collections, cost advances and trust balances in the practice management system to the ledger. You keep every subscription and every login.
How do you handle client cost advances?
Hard costs such as filing fees and expert invoices, and soft costs such as copies and research, are coded to the matter and tracked as advances until billed and recovered. The month-end report lists unbilled costs by matter so nothing is written off by accident, and cost recoveries are matched to the original advance.
Can you support UK firms under the SRA Accounts Rules?
Yes, for the bookkeeping and reconciliation workings. The SRA Accounts Rules require client account reconciliations at least every five weeks, signed off by the COFA or a manager. We prepare the workings and the exception list on that cycle in your Xero, QuickBooks or practice management system, and the COFA reviews and signs. We do not act as COFA or give regulatory advice.
What happens if you find a problem in the trust account?
It goes on the exception list for the supervising attorney the same day, with the amount, the client ledger affected and what we can see in the records. We do not correct trust entries on our own judgment; the attorney decides and we post the approved correction. A clear, dated exception log is the best protection a firm has.
Can you report profit by practice area or attorney?
Yes. With class or tracking-category coding in your accounting file, revenue, cost advances and direct expenses are tagged by practice area, attorney or office. The monthly P&L then shows contribution by segment alongside the firm total, and partner draws and distributions are tracked against the partnership agreement.
Do you prepare the firm's tax return?
No. We prepare a tax-ready year-end package with adjusting entries, schedules and the trial balance and hand it to your CPA or accountant, who prepares and signs the return. In the UK, Canada and Australia the same package goes to your accountant or registered agent.
Ask an AI assistant to summarize this page
Opens the assistant with a prefilled prompt so you can check our claims against the page yourself.