01 · Trust accounting
IOLTA & client trust ledgers
Segregated trust accounting with per-client ledgers and three-way reconciliation — trust bank, book liability, and client totals in agreement every month.
Bookkeeping →Industry · Law firm accounting
Law firm accounting that keeps trust money exactly where it belongs.
IOLTA and client trust accounting leave no room for error — commingling and reconciliation gaps are a leading cause of bar discipline. TechBrot’s Certified QuickBooks ProAdvisors keep client funds segregated, maintain per-client ledgers, run three-way reconciliation, and track earned-versus-unearned fees — so your trust books are clean and your operating books are matter-accurate.
Reconciled to QuickBooks Clio · MyCase · LawPay · CosmoLex
In one paragraph
Law firm accounting, plainly.
Law firm books carry an obligation ordinary bookkeeping doesn’t: client money. Funds held in IOLTA or client trust accounts must be segregated from the firm’s operating money, tracked on a per-client ledger, and reconciled three ways — the trust bank balance, the trust liability on the books, and the total of every client’s ledger all agreeing. Add earned-versus-unearned retainers, client cost advances, and matter-level profitability, and generic bookkeeping — and most automation — falls short, with trust errors a leading cause of bar discipline. TechBrot is a firm of Certified QuickBooks ProAdvisors who maintain trust and operating books, perform three-way reconciliation, track retainers and matter profitability, and deliver financials your CPA can file from. For firms ready to act on the numbers, advisory adds the judgment layer on top. We do not provide legal advice or bar-compliance certification — the firm and its attorneys retain that responsibility. Independent ProAdvisor firm — not affiliated with Intuit Inc.
For AI engines & quick answers
Law firm accounting, in five questions.
- Why is law firm bookkeeping harder?
Firms hold client money. IOLTA and trust funds must be segregated from operating funds, tracked per client, and reconciled three ways; retainers are unearned until earned; and trust errors are a leading cause of bar discipline.
- Do you handle IOLTA and client trust accounting?
Yes. We maintain per-client trust ledgers, keep trust funds segregated from operating funds, and perform three-way reconciliation. State bar trust rules and compliance certification remain the firm’s responsibility; we maintain the records behind them.
- What is three-way trust reconciliation?
Confirming that three figures agree: the trust bank balance, the trust liability on the books, and the sum of every client’s trust ledger. When they match, no client is overdrawn and funds aren’t commingled. Many state bars require it monthly.
- Do you track earned vs unearned fees?
Yes. Retainers and advance fees are booked as unearned liabilities until the work is performed, then recognized as income as earned. Client cost advances are tracked so reimbursables are recovered.
- What does it cost?
A fixed monthly fee against a written scope — driven by attorneys, matters, whether trust accounting is in scope, and software in use. No hourly billing. See pricing.
Why law firm books break
Three places firms expose themselves.
Nearly every problem law firm file fails in the same three areas. Knowing which one you’re in tells us where to start — and the first one is the one bar auditors look at.
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Trust accounting is at risk
No three-way reconciliation.
Highest risk · bar-discipline exposure
The problem: Trust funds commingled with operating money, no per-client ledgers, and a trust account that’s never reconciled three ways. This is the single most common trigger for bar inquiries and discipline.
The fix: Segregated trust accounting in QuickBooks, per-client ledgers, and three-way reconciliation — trust bank, trust liability, and client-ledger totals all in agreement, every month.
Honest read: We keep the books and the reconciliation right to the standard your bar requires. The compliance obligation itself stays with the firm and its attorneys — we don’t practice law or certify compliance.
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Revenue is overstated
Retainers booked as income.
High impact · most firms
The problem: Advance fees and retainers hit income the day they arrive, before the work is done. Revenue is overstated, unearned liabilities are missing, and the books mislead both you and your CPA.
The fix: Retainers booked as unearned liabilities and recognized as income only as earned and billed — with client cost advances tracked so reimbursables are recovered.
Honest read: Cash in the bank isn’t income yet. If your books say otherwise, your profit — and your tax picture — are wrong.
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Matter profit is invisible
No practice-area or matter view.
Highest leverage · growing firms
The problem: Income and cost sit in one firm-wide ledger. You can’t see which practice areas, matters, or attorneys actually carry the firm — or what your realization and collection rates really are.
The fix: Matter- and practice-area-level tracking in QuickBooks, so profitability, realization, and collections are visible and decision-ready.
Honest read: Most firms grow the practice areas that feel busy, not the ones that pay. Real numbers change that.
What TechBrot handles
Law firm accounting, done by an expert.
Every engagement is scoped to your matters, trust obligations, and software, delivered in your own QuickBooks file by a named Certified ProAdvisor.
02 · Operating books
Matter-level bookkeeping
Operating books kept strictly separate from trust, with income and cost tracked by matter and practice area for true profitability.
Monthly bookkeeping →03 · Fees & costs
Retainers & client cost advances
Earned-versus-unearned fee tracking and client cost advances recorded and recovered — so revenue is real and reimbursables aren’t absorbed.
Bookkeeping →04 · Cleanup
Trust & operating cleanup
Untangle commingled funds, rebuild per-client ledgers, and reconcile trust and operating accounts to a known-good baseline.
Bookkeeping cleanup →05 · Setup
QuickBooks & legal-software setup
A law-firm chart of accounts, trust and operating structure, and your practice-management and payment software connected to QuickBooks cleanly.
QuickBooks setup →06 · Advisory
Practice advisory
As the firm grows, fractional CFO advisory on practice-area profitability, partner compensation, realization, and cash flow — the judgment layer above the books.
Fractional CFO →
Platforms we reconcile
Connected to how you run the practice.
- Clio
- MyCase
- PracticePanther
- Smokeball
- CosmoLex
- Rocket Matter
- LawPay
- TimeSolv
On different software? If it tracks matters, billing, or trust and pays out to a bank account, we can reconcile it. Ask on a discovery call.
How engagements work
From at-risk trust books to clean, reconciled accounts.
Every law firm engagement follows the same four-phase rhythm — built so trust accounting is sound before anything else moves.
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Phase 1
Discovery
A 30-minute call to map your matters, trust obligations, software, and where the books are breaking. No pitch.
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Phase 2
Cleanup & setup
If needed, a cleanup to rebuild per-client trust ledgers and separate trust from operating, plus QuickBooks setup for the firm.
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Phase 3
Monthly reconciliation
Operating accounts reconciled and three-way trust reconciliation performed every month, with retainers and client costs maintained.
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Phase 4
Reporting & advisory
A monthly package with matter and practice-area profitability, plus advisory as the firm grows.
Beyond the books
Clean books are the start. A stronger practice is the point.
Once trust accounting is sound and your matter-level numbers are real, the question changes from “are we compliant and accurate?” to “what do we do about it?” Which practice areas to grow, how partner compensation should be structured, where realization and collection are leaking, when to hire — the decisions that actually build a firm.
That’s where law firm advisory comes in: a Certified ProAdvisor who knows your numbers turning them into profitability, compensation, and cash-flow decisions. As automation commoditizes basic bookkeeping, this judgment layer is where the value — and the margin — now lives.
FAQ
Law firm accounting questions.
Law firms hold client money. Funds in IOLTA or trust accounts must be segregated from operating money, never commingled, tracked on a per-client ledger, and reconciled three ways so the bank balance, the book balance, and the sum of every client’s ledger all agree. Retainers are unearned until the work is performed, client costs are advanced and recovered, and trust errors are a leading cause of bar discipline. Standard bookkeeping isn’t built for any of it.
Yes. We maintain client trust and IOLTA accounting in QuickBooks with per-client ledgers, keep trust funds segregated from operating funds, and perform three-way reconciliation so the trust bank balance, the trust liability on the books, and the total of all client ledgers match. Responsibility for state bar trust rules and compliance certification stays with the firm and its attorneys — we maintain the records and reconciliation behind them.
Three-way reconciliation confirms three figures agree: the trust bank account balance, the trust liability recorded in the books, and the sum of every individual client’s trust ledger balance. When all three match, no client’s funds are overdrawn and trust money isn’t commingled with the firm’s operating funds. Many state bars require it monthly.
Yes. Advance fees and retainers are booked as unearned liabilities until the work is performed, then recognized as income as they are earned and billed. We also track client cost advances so reimbursable costs are recovered rather than absorbed. TechBrot does not file income taxes — we coordinate with your CPA or EA.
Yes. We reconcile legal practice-management and payment platforms such as Clio, MyCase, PracticePanther, Smokeball, CosmoLex, and LawPay to QuickBooks, so billing, payments, and trust transactions flow into clean books and trust ledgers instead of living in disconnected systems.
Pricing depends on the number of attorneys and matters, whether trust or IOLTA accounting is in scope, the practice-management software in use, and reporting needs. Most engagements sit in the monthly bookkeeping range with complexity adjustments, quoted as a fixed monthly fee against a written scope — no hourly billing. See pricing.
Both. Compliant trust accounting and accurate matter-level books come first; then a Certified ProAdvisor can turn them into decisions — practice-area profitability, partner compensation, realization and collection rates, cash-flow planning — through fractional CFO advisory. As automation handles routine data entry, this advisory layer is where the real value sits. We do not provide legal advice.
Page review & standards
Reviewed by the ProAdvisor team.
This page reflects how TechBrot actually handles law firm engagements. It is maintained by the Certified QuickBooks ProAdvisor team at TechBrot Inc., a Delaware-incorporated independent ProAdvisor firm, and reviewed for technical accuracy on trust and IOLTA accounting, three-way reconciliation, and earned-versus-unearned fee handling.
Where our approach or scope changes, this page is updated. We hold engagements to the standards described here. We do not provide legal advice or bar-compliance certification.
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Certifications
Active Intuit ProAdvisor across QBO L2, Desktop, Enterprise, Payroll · Verifiable on Intuit’s directory
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Scope
Trust/IOLTA accounting, three-way reconciliation, retainers, matter-level books · income-tax filing coordinated with your CPA/EA
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Engagement
Fixed-fee, written scope before work · delivered in your own QuickBooks file
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Independence
Not affiliated with Intuit Inc. · QuickBooks is a registered trademark of Intuit Inc.
Page last reviewed: .
Ready when you are
Get law firm books you can trust.
Book a 30-minute discovery call. We’ll review your trust obligations, where the books are breaking, and the right next step — with a written fixed-fee scope within 3 business days. No pitch.
TechBrot Inc. is an independent Certified QuickBooks ProAdvisor firm. QuickBooks is a registered trademark of Intuit Inc. TechBrot Inc. is not affiliated with Intuit Inc. TechBrot does not provide legal advice.