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Bookkeeping for Massachusetts law firms

Your firm's books, kept clear. Your IOLTA, reconciled monthly.

For solo attorneys and small firms: operating bookkeeping, three-way trust account reconciliation, and monthly reports we walk through with you.

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Talk through your concerns, your current books, and what support would fit your firm. Or call 781-924-1489.

  • 12 years working with law firms
  • Attorney references available
  • Bookkeeping since 2001

Every month

Four things we handle every month.

Once we're set up, here is what we do each month, what you receive, and what we need from you.

Trust accounting

Three-way IOLTA reconciliation

We reconcile your IOLTA account, comparing the adjusted bank balance, your check register, and the total of every client matter ledger. If they don't agree, we trace the difference to its source.

You receive the month's reconciliation reports, plus a prompt heads-up about anything that needs your decision, such as a check that hasn't cleared.

Signs a trust account needs a closer look

  • A difference between the bank and your records that no one can explain
  • Checks that have been outstanding for months
  • Not being sure it's right, which is often the first sign
See how we traced one discrepancy back three years
How a three-way reconciliation works
  1. Adjusted bank balanceStatement balance, plus outstanding deposits, minus outstanding checks
  2. Check register balanceEvery deposit and disbursement, in order, with a running balance
  3. Client ledger totalEach client matter's balance, plus the bank fees ledger, added together

All three identical: the account reconciles.

Any difference: we trace it and bring you anything that needs a decision.

Massachusetts Rule 1.15 calls for this three-way comparison on any trust account that holds funds for more than one client matter, as a pooled IOLTA account typically does. The bank side is adjusted for timing: a check you've written counts against the account until it clears, and a deposit in transit counts toward it. Listing every matter's balance also exposes a negative client balance, which the rule prohibits. The account remains your responsibility; the monthly reports let you see whether it reconciles.

Operating bookkeeping

We record the firm's income and expenses in QuickBooks Online, and handle bills when accounts payable is part of our arrangement.

You receive current books, with fees and client cost reimbursements tracked separately.

Reports built for your firm

We set up reporting around the questions you ask. Depending on your records, that can include billings by associate, income by legal service line, and operating income and expenses.

You receive the same tailored reports every month, so you can see how things change.

A monthly review conversation

We walk through the reports with you, answer your questions, and raise anything we noticed.

You receive a clear read on the numbers and time to plan next steps together.

What we need from you each month: answers to a short list of requests and questions, and time for the review conversation.

From recent work

A three-year-old error, and a check the bank paid twice.

Two recent examples from our IOLTA work, with client names and amounts left out.

Historical discrepancy

Finding where a discrepancy began

Situation
A firm's IOLTA account was off, and no one at the firm could explain why.
What we did
Worked back through about three years of records, found where the error started, and corrected it.
Outcome
Corrected reconciliations for the full period, prepared for the review that followed.

Duplicate withdrawal

Spotting a duplicate withdrawal

Situation
The bank paid the same significant IOLTA check twice, about a week apart.
What we did
Identified the duplicate withdrawal and notified the attorney.
Outcome
The funds were restored to the account.

Want to hear it from an attorney? References from attorney clients are available on request.

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Working with your firm

Already have a bookkeeper? We can work alongside them.

Some of our law firm clients keep an in-house bookkeeper for day-to-day entries and bring us in for the specialized pieces: the monthly three-way reconciliation, QuickBooks set up to produce the reports they want, and a second set of eyes on the books.

If your firm doesn't have a bookkeeper, we handle all of it.

Your bookkeeper

  • Day-to-day entries
  • The routines they already run

Larsen

  • Monthly three-way IOLTA reconciliation
  • QuickBooks structure for the reports you want
  • A second set of eyes on the books each month

Getting started

From a first look to a steady monthly routine, in three steps.

Firms come to us at different points: books in good order, books no one is sure about, or a problem that needs untangling. Each starts the same way.

  1. Understand your books and needs

    We meet with you and anyone on your team who should be involved. We review the operating books, how QuickBooks is set up, the balance sheet, and whether the IOLTA reconciles, and we ask what you want your reports to show.

    Common findings: client cost reimbursements mixed in with fee income, earned fees left in the trust account, long-outstanding checks, and simple arithmetic errors.

  2. Scope any cleanup or setup

    If past records need correcting, we scope that as a separate project and give you an estimate before work begins. If your books are in good shape, you move straight to step three.

  3. Settle into the monthly routine

    We gather as much as we can up front so we need less from you later. After the first month or two, monthly requests are usually light.

Questions between meetings? Calls and emails are returned within 24 hours, usually sooner.

Questions

Questions, answered plainly.

Rule 1.15 requires a reconciliation report for each trust account at least every sixty days. The rule's commentary adds that trust accounts generally should be reconciled monthly so errors can be corrected promptly. Monthly is our standard.

No. We work with Massachusetts solo attorneys and small firms, especially those with two to six associates. Staying in one state means our trust account work follows one set of rules.

QuickBooks Online is our software of choice. If your firm keeps its books in something else today, mention it when we talk.

Typically not. Attorneys usually prefer to keep billing and collections in-house. We record the payments that come in and can report on billings by associate or service line.

Monthly bookkeeping is a flat monthly fee based on your firm's complexity, including how many accounts we maintain, so you can budget for it. If historical cleanup is needed, it's scoped separately, with an estimate before any work begins.

Consultation

Start with a conversation about your firm's books.

Who it's for
Massachusetts solo attorneys and small firms considering specialized bookkeeping support.
What we'll cover
Your concerns, how your books and IOLTA are kept today, and what support might fit. If we can look at the books together during the call, we will, and we'll tell you what we notice.
What happens next
Send the form, and we'll contact you to find a time.

You'll speak with Liliane Larsen, founder of Larsen Bookkeeping.

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