Legal accounting for law firms
Legal Accounting Built for Compliance.
Specialized accounting support for law firms seeking clearer trust-account records, dependable reconciliations, and a more audit-ready process.
- IOLTA and trust accounting support
- Bar association audit preparation
- Legal software workflow expertise
- Monthly three-way reconciliations
Trust accounting support
IOLTA & Trust Accounting
We help you stay audit-ready.
From transaction coding and client ledgers to monthly reconciliations, we help your firm maintain clear, organized trust-account records that are easier to review.
See our processPrepared documentation
Bar Association Audit Support
A calmer, more organized response.
We help assemble reconciliations, ledger reports, bank documentation, and supporting schedules so your firm can respond to an audit request with greater clarity.
Discuss audit supportBuilt around your jurisdiction. True North Accounting provides accounting support, not legal advice. Your law firm remains responsible for following the current professional-conduct and trust-account rules applicable in each jurisdiction.
A cleaner monthly close
A practical trust-accounting process
Consistent controls make discrepancies easier to find, explain, and correct before they become larger problems.
Transaction Coding
Record trust deposits, disbursements, transfers, and adjustments with consistent matter-level detail.
Client Ledgers
Maintain separate activity and balances for each client or matter represented within the pooled account.
Bank Reconciliation
Reconcile the bank statement to the trust-account register and investigate outstanding or unusual items.
Three-Way Reconciliation
Compare the bank balance, book balance, and total of individual client ledgers as of the same date.
Review Package
Organize reconciliation reports and supporting records into a consistent month-end file for internal review.
Software We’re Trained In
We work seamlessly with leading legal practice-management systems.
State-by-state IOLTA resources
Start with your official state bar.
Select a jurisdiction to open the official statewide bar organization’s website. Every link on this page goes directly to that bar association’s official website in a new tab.
State bar sites organize trust-account guidance differently. After opening the official site, use its search function for “IOLTA,” “trust account,” “client funds,” or “professional conduct.”
IOLTA FAQs
Common trust-accounting questions
General accounting information only. Your jurisdiction’s current rules control.
What is an IOLTA account?
An IOLTA account is generally a pooled, interest-bearing trust account used for client or third-party funds that are nominal in amount or expected to be held for a short period. Program structure and eligibility vary by jurisdiction, so consult the current guidance from your official state bar.
What does a three-way reconciliation compare?
It typically compares the adjusted bank-statement balance, the trust-account book or register balance, and the combined balance of all individual client ledgers as of the same date. The required format and frequency may vary by jurisdiction.
How often should trust accounts be reconciled?
Monthly reconciliation is a common internal control and is required in some jurisdictions, but the exact timing and documentation rules are state-specific. Follow the current rules and guidance issued for your jurisdiction.
What records are commonly maintained?
Common records include bank statements, deposit documentation, canceled-check images, an account register, individual client ledgers, transfer support, reconciliation reports, and documentation of outstanding items. Required records and retention periods vary.
Can earned fees remain in an IOLTA account?
Earned fees are generally transferred according to the engagement terms and applicable professional-conduct rules rather than left commingled with client funds. Disputed funds may require different handling. Confirm the rule that applies in your jurisdiction.
What happens if a trust account is overdrawn?
Many jurisdictions have overdraft-notification requirements. Investigate the cause promptly, preserve documentation, and consult the official bar guidance or qualified legal counsel about any reporting or corrective obligations.
Build a more confident trust-accounting process.
Start with a consultation about your firm, software, reporting needs, and current reconciliation workflow.