An IOLTA account is a bar requirement in every state. Mismanaging one can cost an attorney their license. Despite how important IOLTA accounts are, many attorneys don’t fully understand the rules that govern them. This guide covers what an IOLTA account is, what the rules require, and what happens when those rules aren’t followed.

Accounting for law firms involves more than standard financial management. IOLTA trust accounts, three-way reconciliation, and state bar compliance requirements create obligations that go well beyond typical small business accounting. This guide covers what compliance-focused law firm accounting actually requires.