IOLTA & TRUST ACCOUNT MANAGEMENT
Trust account errors are the leading cause of bar discipline nationwide. We specialize in IOLTA compliance so your law firm's books are always accurate, reconciled, and audit-ready.
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THE STAKES FOR LAW FIRMS ARE REAL
Trust Account Violations Can End a Legal Career
Mishandling client funds, even unintentionally, can result in bar discipline, suspension, or disbarment. Most violations aren’t fraud. They’re accounting errors.
⚠️ Commingling operating and client funds
⚠️ Failing monthly three-way reconciliation
⚠️ Taking fees before they are earned
⚠️ Missing or incomplete client ledgers
Your Bar License Lives in
These
Numbers.
UNDERSTANDING IOLTA
What Is IOLTA and Why Does It Matter?
IOLTA stands for Interest on Lawyers' Trust Accounts. It is the account where attorneys are required by state bar rules to hold client funds that have not yet been earned, including retainers, settlement proceeds, and advance fee deposits.
Unlike your operating account, IOLTA funds belong to your clients, not your law firm. Every dollar in that account must be accounted for, tracked by client, and reconciled every month. The rules are strict, the documentation requirements are detailed, and the consequences of getting it wrong are severe.
Most law firms understand the stakes. Fewer have the systems in place to stay compliant month after month, year after year. That's where we come in.
1
Client Retainers
Advance fee deposits held until services are earned and properly transferred to your operating account.
WHAT GOES INTO A TRUST ACCOUNT
2
Settlement Proceeds
Client settlement funds held in trust until disbursement to clients and payment of fees.
3
Cost Advances
Client funds advanced for filing fees, court costs, and other case-related expenses.
4
Escrow & Other Client Funds
Any funds held on behalf of clients in connection with a legal matter.
OUR PROCESS
Three-Way Reconciliation. Every Month. No Exceptions.
Most state bars require attorneys to perform three-way trust account reconciliation monthly. Many law firms either don’t do it, do it incorrectly, or fall behind. We make sure yours never lapses.
🏛️
Bank Statement
Your actual bank balance from the financial institution holding your trust funds.
📒
Trust Ledger
Your law firm’s running record of all trust account deposits, disbursements, and balances.
Must match
Must match
👥
Client Ledgers
Individual records for every client showing their specific balance held in trust.
✔️
All Three Must Reconcile to the Same Balance
Any discrepancy, no matter how small, is a compliance issue that requires immediate investigation. We catch and resolve these before they become bar complaints.
👥
Client Ledgers
Individual records for every client showing their specific balance held in trust.
common questions FROM LAW FIRMS
IOLTA Questions We Hear Most
Every client receives a full three-way trust account reconciliation every month without exception. We don't skip months, delay, or batch reconciliations. Monthly reconciliation is a bar requirement in most states and a non-negotiable standard for us regardless of state rules.
We handle this regularly. Before starting ongoing service, we perform a trust account cleanup and reconciliation going back to wherever the records are clear. This is scoped as a one-time project. Once your trust accounts are clean and reconciled, we bring you into our ongoing monthly service so it never falls behind again.
Yes. The core requirements are consistent across states, but specifics around recordkeeping formats, reconciliation documentation, and reporting vary by state bar. Because we work with law firms nationwide, we are familiar with bar requirements across all 50 states and make sure your trust account management meets your specific state's standards.
Ideally your books are always audit-ready and you never need to scramble. That is our standard for every client. If you have received notice of a bar audit and need help organizing records or addressing specific documentation requirements, contact us directly and we will prioritize your situation.
We work within your existing software. QuickBooks, Clio, MyCase, Xero, and most other major platforms used by law firms. If your current software has limitations for trust account tracking, we will discuss the options during onboarding. We never require you to purchase new software before we assess your situation.