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LAW FIRM

30-attorney firm: trust accounting that survived a bar audit.

Operating and trust funds were comingled in the books, even though physically separated in banking.

100% US-based accountants
~5 days Typical month-end close
1 team Books, tax, and reporting in sync

The situation

A regional firm had a clean banking setup but their accounting recorded trust receipts to operating revenue, then reversed them at month-end. A surprise bar inquiry was scheduled.

What we did

We rebuilt the GL with strict trust-account segregation, implemented three-way IOLTA reconciliations, and tied matter-level revenue to Clio. Partner draws were rebased on actual contribution by practice area.

Outcome

The bar audit closed without findings. The partners now meet quarterly to review matter-level profitability instead of arguing over draw allocations.

Engagement profile

  • Industry: Law (mid-size regional)
  • Annual revenue: ~$15M
  • Engagement type: Outsourced finance
  • Time to first clean close: 7 weeks

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