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Bookkeeping for law firms and their operating accounts
Bookkeeping for attorneys depends on knowing whose money a transaction represents. Tidwell provides bookkeeping support alongside the firm’s CPA or attorney, with clear separation between operating activity and client funds under the firm’s direction.
Last reviewed:
General information, not legal advice.
Preserve the distinction between client and firm funds
Keep trust and IOLTA activity separate from earned operating revenue in the records. Identify the client or matter associated with each receipt and disbursement. The responsible attorney establishes handling procedures and resolves legal questions; Tidwell supports the bookkeeping process.
Match matter records to the bank activity
Retain matter-level balances and transaction support for reconciliation. Flag unexplained transfers or missing references for the attorney before treating an entry as resolved. A bank balance should be explainable through the supporting ledger.
Connect billing, expenses and operating cash
Separate billed fees, collections, reimbursable costs and ordinary overhead. An open-invoice review can show which matters are awaiting payment without confusing client funds with the firm’s available cash.
Keep staff payroll out of matter-fund decisions
Payroll for law firms uses approved compensation and employee time records. Organize those costs within the operating books, and provide financial statements and supporting schedules to the firm’s CPA. We do not prepare the firm’s tax returns or advise on trust-account law.
Questions about matter balances and operating books
Can you help organize law firm trust records?
We can discuss reconciliation support using the procedures established by your responsible attorney. Missing matter details and unexplained transactions remain questions for the firm to resolve.
Does bookkeeping support include legal advice on IOLTA?
No. Your attorney determines the rules and handling decisions. Tidwell’s role is to organize and reconcile the financial records within the agreed scope.
What should a law firm bring for a cleanup review?
Bring account statements, matter ledgers, billing reports and approved transfer records. Identify the last period your firm considers reconciled.
Create a clearer record for your firm’s advisers
Bring your current records and the questions you want the books to answer. We work remotely across California, with meetings at our Atascadero office by arrangement to discuss a practical service scope.
Monthly bookkeeping starts at $500 a month. See pricing