Bookkeeping for Law Firms
At Presti & Naegele, we provide law firms with precise, dependable, and industry-specific bookkeeping for law firms—ensuring clear records, compliance, and control over every financial detail. From trust account reconciliation to expense tracking, our bookkeeping services are built around the unique needs of legal professionals.
Whether you're a solo practitioner or part of a growing firm, we help streamline your financial operations so you can stay focused on serving your clients with confidence.
Legal Bookkeeping That Supports the Way Law Firms Work
Legal bookkeeping isn’t just about tracking transactions—it’s about staying organized, staying compliant, and staying in control. Presti & Naegele understands the specific bookkeeping challenges law firms face, from IOLA trust accounts to contingency case costs. We design systems tailored to legal professionals that make the day-to-day easier and more efficient.
Our bookkeeping services for law firms are built to help you:
- Maintain clean, accurate records that reflect your firm’s operations
- Properly manage IOLA and escrow accounts in compliance with legal regulations
- Track reimbursable client costs and case-related expenses accurately
- Separate business and client funds with confidence
- Stay on top of income and expenses with consistent, law-firm-specific reporting
This is bookkeeping that fits your firm—not a one-size-fits-all approach.
Why Bookkeeping for Law Firms Is So Essential
In the legal world, disorganized books aren’t just a headache—they can lead to ethical violations and client trust issues. Presti & Naegele’s bookkeeping for law firms helps eliminate those risks by giving you a clear picture of your firm’s financial activity.
You benefit from:
- Transparency: Know where every dollar is going
- Compliance: Stay in line with IOLA and state requirements
- Clarity: Understand your cash flow, expenses, and firm activity at a glance
- Time Savings: Focus on client work while we keep your books in order
We’re here to help you feel confident in your recordkeeping—without the stress.
Trust Accounting You Can Count On
Managing trust accounts comes with strict rules—and serious consequences if done incorrectly. Our team understands how to properly handle IOLA and escrow account bookkeeping for law firms, and we follow the regulations to the letter.
We help you:
- Keep client funds and business funds fully separated
- Record and monitor deposits, disbursements, and interest
- Reconcile IOLA and escrow accounts regularly
- Ensure interest is calculated and reported properly for the IOLA Fund
- Document every transaction clearly and consistently
With our support, your trust accounting process is accurate, consistent, and handled with care.
Contingency Expense Tracking Done Right
For law firms working on contingency, tracking case-related expenses accurately is critical. The IRS may not allow immediate deductions for some of these costs, so how you track and categorize them matters.
We help your firm:
- Maintain separate records for reimbursable client costs
- Track key case expenses like court fees, travel, expert witnesses, and more
- Ensure clean documentation for each case file
Our detailed approach gives you peace of mind that every dollar spent is properly logged—and ready when needed.
Choosing the Right Business Structure for Clean Bookkeeping
The way your law firm is structured affects how your books are maintained. Whether you’re operating as a sole proprietor, an LLC, or a partnership, we’ll help you understand what that means for your bookkeeping approach and setup.
We walk you through the basics of common structures:
- Sole Proprietorship – Simple to manage, but income and expenses are tied directly to the owner.
- Partnership – Involves shared ownership and shared responsibilities in recordkeeping.
- LLC – Offers flexibility in management with clearer separation of business finances.
- S-Corp / C-Corp – May involve more complex reporting, but with clear delineation between business and personal records.
We tailor your bookkeeping process to align with your chosen structure, ensuring it remains easy to manage and clearly documented.
What's the Best Accounting Software for Law Firms?
The best accounting software for law firms is one that aligns with the legal profession’s needs—particularly the ability to handle trust accounts, time tracking, and legal billing.
At Presti & Naegele, we help law firms set up and optimize software solutions like QuickBooks, making sure they work seamlessly with your practice. We assist in:
- Selecting software that meets compliance needs
- Customizing the system to your law firm’s operations
- Connecting it with your legal billing and case management tools
- Maintaining ongoing support and monthly entries
Whether you're just starting out or transitioning from another system, we’ll help you get your books running smoothly from day one.
Long-Term Benefits of Proper Legal Bookkeeping
Accurate bookkeeping doesn’t just serve your firm today—it supports your long-term success. When your records are reliable and consistent, your team can plan ahead, meet deadlines, and avoid costly errors.
Our legal bookkeeping systems help you:
- Keep your firm organized and responsive
- Avoid missed payments or forgotten obligations
- Understand where your income and expenses come from
- Stay ready for annual filings and financial reviews
- Reduce stress by knowing your records are accurate and up to date
With Presti & Naegele, your books don’t just get done—they become a strength for your business.
Why Law Firms Choose Presti & Naegele
For over 40 years, Presti & Naegele has been a trusted name in accounting for professionals across industries—including law. We’re known for our hands-on service, attention to detail, and deep understanding of legal bookkeeping requirements.
Here’s why legal professionals rely on us:
- A dedicated team familiar with law firm operations and trust regulations
- Prompt, responsive support whenever you need it
- Tailored services designed specifically for attorneys and firms
- Transparent communication and detailed monthly reporting
When you work with Presti & Naegele, you’re not just hiring a bookkeeper—you’re gaining a team that understands the high standards legal professionals are held to.
FAQs: Bookkeeping for Law Firms
What does bookkeeping for law firms involve?
Bookkeeping for law firms includes recording income and expenses, tracking case-related costs, managing trust accounts, and organizing all financial activity in a way that’s specific to legal operations. Presti & Naegele provides detailed monthly records, reconciliations, and clean reporting so your firm can operate smoothly and stay compliant.
Why is legal bookkeeping different from regular bookkeeping?
Law firms are held to higher regulatory standards when it comes to trust accounts and client funds. Bookkeeping for law firms requires precise separation of client money from business finances, detailed tracking of contingency costs, and reporting in line with legal ethics rules. Our team has specific experience in these areas and builds systems that meet those standards.
How often should I reconcile my firm’s trust account?
Trust accounts should be reconciled at least monthly, and more frequently if your firm processes a high volume of transactions. We handle these reconciliations for our clients on a regular schedule, ensuring records are accurate and nothing falls through the cracks.
Can I use regular bookkeeping software for my law firm?
While many law firms use general accounting platforms like QuickBooks, they must be configured correctly to meet legal-specific requirements. Presti & Naegele helps law firms set up and maintain software that supports proper trust accounting, expense tracking, and integration with legal practice tools.
Do you offer support for different law firm structures?
Yes. Whether you're a sole practitioner, an LLC, or part of a partnership, we help ensure your bookkeeping aligns with your structure. We guide you through setup, help you understand the reporting expectations, and maintain clean records that match your operational model.
Ready to Take the Stress Out of Bookkeeping?
Let Presti & Naegele handle the bookkeeping—so you can focus on winning cases, serving clients, and growing your firm with confidence. Our specialized bookkeeping for law firms gives you the clarity, compliance, and peace of mind you need.
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For inquiries or guidance, contact Presti & Naegele Accounting and Advisories. Your success awaits!
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