Law Firm Accounting Services: Specialized Bookkeeping & Trust Compliance for Attorneys

zlkcpa
Feb 16
3 min read

Running a law firm requires precision, and that applies to your finances just as much as your legal work. Law firm accounting is not the same as standard small business bookkeeping. Between trust accounts, retainers, partner distributions, and compliance requirements, attorneys need specialized accounting support.

At Kamish & Associates, we provide law firm accounting services designed specifically for attorneys who want accurate books, compliant trust accounting, and clear financial reporting.

If you’re looking for a CPA for law firms or bookkeeping services built around legal practices, here’s what you need to know.

Why Law Firm Accounting Is Different

Accounting for law firms involves strict ethical and regulatory requirements. A general bookkeeper may understand income and expenses, but legal accounting requires deeper knowledge of:

IOLTA and trust account compliance
Retainer tracking and earned revenue recognition
Three-way trust reconciliations
Work in progress (WIP) reporting
Partner compensation and distributions
Cash flow forecasting for contingency or hourly billing models

Without proper oversight, small accounting errors can quickly turn into compliance risks.

Trust Accounting for Attorneys: Getting It Right

One of the most critical areas of law firm bookkeeping is trust accounting.

Improper handling of client funds can lead to audits, penalties, or disciplinary action. Trust accounting for attorneys must include:

Separate trust and operating accounts
Detailed client ledger tracking
Monthly three-way reconciliations
Proper movement of earned fees
Accurate reporting of client balances

At Kamish & Associates, we help law firms maintain compliant trust accounting systems so you can focus on serving clients instead of worrying about regulatory issues.

Law Firm Bookkeeping Services That Support Growth

Clean books do more than keep you compliant. They give you clarity.

Our law firm bookkeeping services include:

Monthly bank and credit card reconciliations
Trust account reconciliation and oversight
Retainer and earned revenue tracking
Financial statement preparation
Cash flow reporting
Budgeting and financial forecasting

When your financial reports are accurate and up to date, you can confidently make hiring decisions, plan for tax obligations, and evaluate profitability by practice area.

Common Accounting Problems We See in Law Firms

Many law firms come to us after experiencing:

Overdrawn trust accounts
Unreconciled bank statements
Inaccurate financial reports
Confusion around partner distributions
Surprise tax liabilities
Poor visibility into profitability

These issues are rarely intentional. They typically stem from using bookkeeping systems that were never designed for law firm accounting.

Specialized accounting support corrects these problems and builds a stronger financial foundation.

Benefits of Working with a CPA for Law Firms

When you work with a CPA who understands accounting for law firms, you gain:

Confidence in your trust account compliance
Accurate and timely financial statements
Better tax planning
Improved cash flow management
Clear insight into firm performance

You also gain time. Instead of managing spreadsheets or worrying about reconciliations, you can focus on client service and firm growth.

Why Choose Kamish & Associates for Law Firm Accounting?

At Kamish & Associates, we understand the financial structure and compliance requirements unique to legal practices. Our goal is simple: keep your books clean, compliant, and growth-focused.

Whether you are a solo attorney, small partnership, or growing firm, we provide accounting services tailored specifically to law firms.

We don’t just record transactions. We help you understand your numbers and use them to make smarter business decisions.

Schedule a Consultation

If you’re searching for:

Law firm accounting services
Bookkeeping services for attorneys
Trust accounting support
A CPA for your law firm

Kamish & Associates is here to help.