Utilizing professional bookkeeping for attorneys to help keep accurate monthly documentation and consistent reviews of the business financial statements, you will see your firm’s accurate financial picture. With this picture, you can see opportunities for growth and see options before less organized competitors. Legal accountants use the data records provided by bookkeepers to create a foundation built to help firms make informed financial decisions.

Making mistakes with trust accounting can lead to penalties, suspension, or the loss of the right to practice law. Partnering with NorthStar Bookkeeping means you’re not just hiring a service; you’re gaining a financial ally. Since 2014, our team has specialized in legal bookkeeping, providing law firms like yours with the meticulous, compliant, and insightful financial management they need. Outsourcing your bookkeeping to NorthStar isn’t just a decision to stay organized; it’s a strategic move toward a more focused, stress-free legal practice. Interest on Lawyer Trust Accounts, also known as IOLTA accounts, are bank accounts used to hold client retainers, settlement funds, and other money that belongs to clients. Law firms must maintain compliance with their local governing body’s legal accounting rules and regulations.

Client management

We offer personalized and tailored bookkeeping services for law firms and practice management services to help small and solo law firms streamline their financial processes. It is easy to make legal accounting mistakes when working in law with trust accounts. It is too easy to put the funds in the wrong bank account, mismanage an account, accidentally use funds that need to be saved, or fail to report it correctly.

Accounting for law firms is often intimidating—even for seasoned lawyers. While you’ve spent years honing your skills to become a great lawyer, you didn’t learn about accounting or bookkeeping for attorneys at law school. Imagine if the team at a law firm recognized the importance of being prepared for tax time and https://www.bookstime.com/ the law firm accounting throughout the year to be prepper for the end of the year. Keeping track of all these records sounds like a lot of work, making it easy to procrastinate until the end of tax season. The most common and dangerous legal accounting areas to make a mistake in are trust and IOLTA accounts.