Trust Accounting

Trust Accounting Basics

We know that holding client money in trust places extra burdens on attorneys. This is why we take extra care to be certain that our clients' trust account records are absolutely accurate. We have put in place systems, processes, and procedures to make sure that trust funds in the clients' bookkeeping system are allocated to the proper client and have not been incorrectly removed or moved to another trust or business account. We have extensive experience managing trust account record keeping, and have put in place checks and double checks to make sure that the records accurately reflect each client's trust account balance.

Accuracy Matters

We understand the seriousness of the consequences to an attorney if their trust accounts records are inaccurate. That is why we take our trust accounting duties very seriously. We are committed to having ongoing, routine communications with all of our clients to make sure they have the most up-to-date information about the status of their trust account records. We reconcile our clients' trust accounts every month, and inform our clients immediately if we find that our records do not match the trust account bank statements.

Pitfalls of Using Legal Support Staff for Trust Accounting

Many firms choose to have their receptionists, legal assistants, or paralegals handle their trust accounting. But these staff members generally do not have a background in legal bookkeeping or accounting and do not know the general accounting principles that govern the record keeping associated with the accounts. Many times they don't know to put protocols or procedures in place to ensure that the trust account data is accurately entered into the record keeping system.  Worse, these staff members are working on time-sensitive, billable legal matters which take priority over administrative tasks such as bookkeeping. Pressure on staff to work on billable matters also can lead to them to ignore the bookkeeping tasks for months making it more likely that a serious error in the trust accounts will not be found or resolved in a timely manner. Finally, if you are using non-legal bookkeeping software like Quickbooks, Wave, or Xero, your bookkeeper must understand how to manually set up trust accounts, something that is very specialized and easy to mess up if you aren't familiar with accounting principles. Lack of knowledge about tracking trust accounts in non-legal bookkeeping programs increases the likelihood that errors will be made.


Our company is a dedicated legal bookkeeping company - it's the only thing we do all day, every day.  We have established internal controls to ensure the accuracy of the data entered into the bookkeeping system. We do not put off the bookkeeping tasks to work on other matters, because there are no other matters for us to work on. We enter the data within 48 hours of receiving it from our clients. We also know how to properly set up and manage trust accounts in non-legal bookkeeping software so that it is done correctly and won't mess up your trust accounts or business books. By choosing to work with our company, you are ensuring that your trust accounts will be up-to-date and accurate and that they won't fall by the wayside to make room for billable tasks.


Contact us to schedule a consultation to find out how our expertise in trust accounting can help you to relieve the administrative burden on your support staff and help you ensure the accuracy of the trust account records.