Trust Accounting & Bookkeeping for Law Firms

Trust accounting isn't ordinary bookkeeping. Ledger & Light was built by someone who spent more than a decade inside a Florida law firm, managing its trust accounting, reconciliations, and bookkeeping.

Law office bookshelves

Services for law firms

Trust (IOTA) accounting. Individual client ledgers with running balances, correct handling of advances versus earned retainers, IOTA account records, and an annual listing of each client's unexpended balance — the record-keeping Chapter 5 requires.

Monthly three-way reconciliation. Every month we reconcile your trust bank balance to your book balance and to the total of all individual client ledgers, with any difference documented in writing. It’s the step that proves every client’s money is accounted for.

Operating-account bookkeeping. Categorized transactions, reconciled accounts, and clean monthly financials for the business side of your practice.

Cleanup and catch-up. Behind on reconciliations or inherited messy books? We’ll work through the existing records, identify discrepancies, and get your trust and operating accounts reconciled and properly documented.

QuickBooks Online. Everything runs in QuickBooks Online, set up correctly for a law firm from the start. Certified QuickBooks ProAdvisor.

Specialist vs. General Bookkeeper

Ledger & Light: works from Chapter 5 of the Rules Regulating The Florida Bar (Rules 5-1.1 and 5-1.2).

The Rules

General bookkeeper: knows standard bookkeeping, not the Bar's trust rules.

Ledger & Light: a three-way reconciliation every month (bank, book, and the sum of every client ledger), documented in writing.

Reconciliation

General bookkeeper: a bank reconciliation only; client ledgers are never tied out.

Ledger & Light: client advances are held as a liability in trust until the fee is earned and transferred.

Advances & Retainers

General bookkeeper: deposits booked straight to income, overstating revenue and hiding what the firm owes clients.

Ledger & Light: filing fees, expert fees, and other costs are tracked by matter as amounts clients owe the firm until reimbursed.

Costs the Firm Advances

General bookkeeper: expensed, which understates profit and loses track of what each client owes.

Ledger & Light: settlement funds go through trust and each disbursement (client, fees, cost reimbursement) is recorded to the client's ledger per the closing statement.

Settlements

General bookkeeper: one lump deposit, often into operating, with no client-level trail.

Your Questions, Answered

  • If your firm holds client funds, yes. Trust accounting requires a ledger for every client matter and a monthly reconciliation of the bank, the books, and those ledgers. Most general bookkeepers have never done it. Ledger & Light does this work every month for small Florida firms.

  • Your firm. Compliance and the annual trust accounting certificate are the attorney's responsibility under the rules. Our job is to produce and maintain the records and reconciliations those rules require, so you can certify with confidence and be ready if the Bar ever audits.

  • It's the monthly check that your trust bank balance, your book balance, and the total of every client's individual ledger all agree to the penny. Florida requires it. When the three don't agree, the difference is investigated and documented in writing.

  • Yes. Bookkeeping is done remotely in QuickBooks Online, so we serve firms across Florida. Central Florida firms are welcome for in-person meetings when useful.

  • Because you should know what trust accounting costs before you call. Most firms that do this work quote only after a sales call. Our plans and add-ons are on the Pricing page, and the final price is confirmed in writing before any work begins.

  • Trust accounting starts at $495/month for firms with their own bookkeeper, and $850/month for firms that want trust and operating books handled together. Final pricing depends on your accounts, transaction volume, and number of client matters. Cleanup of past months is quoted separately. See our Pricing page for plan details.

  • No. We never hold signature authority, online banking access that can send money, or custody of client funds. We record and reconcile; your firm approves and makes every disbursement.

  • Yes. Cleanup is a separate project because the scope varies. We review the existing records, identify unreconciled items and discrepancies, rebuild missing ledger detail where possible, and set up a reliable monthly process going forward.

  • Yes. Ledger & Light is a Certified QuickBooks ProAdvisor and handles QuickBooks Online setup, cleanup, and monthly bookkeeping for small law firms.

  • In most cases, yes. The workflow depends on how your software (Clio, MyCase, LeanLaw, and others) handles trust and client ledgers. We review your setup before the engagement begins.

Ledger & Light provides bookkeeping and accounting support. It does not provide legal advice or determine a firm's legal or ethical obligations. Attorneys remain responsible for complying with the rules that apply to their practice.