Industries · Law Firms
Accounting & Tax Services for Law Firms
You hold clients to the letter of the law, the Florida Bar holds your trust account to the same standard.
From Brickell towers to Coral Gables boutiques and Broward litigation shops, South Florida supports one of the densest legal markets in the country. Solo practitioners, contingency firms, and multi-partner practices all share a common exposure: the financial rules governing lawyers are stricter than those governing almost any other profession, and the consequences of getting them wrong involve the Florida Bar, not just the IRS.
Trust accounting sits at the center of that exposure. Client funds in IOLTA accounts must never commingle with operating money, every client ledger must balance to the penny, and the Bar expects monthly three-way reconciliations between bank balance, book balance, and individual client ledgers. Beyond trust compliance, firms wrestle with advanced client costs that behave like loans rather than expenses, contingency fees that arrive in unpredictable lumps, partner draws and allocations that need clean K-1 support, and the cash-versus-accrual choices that shape firm taxes.
Integris Accounting gives law firms a financial back office that understands the stakes. We perform trust reconciliations on the Bar's rhythm, keep advanced costs tracked by matter, smooth contingency windfalls with real tax planning, and produce the partner-level reporting that keeps compensation discussions civil. Your staff practices law; we handle the accounting with the discretion and precision the profession demands.
The landscape
80,000+
attorneys admitted to the Florida Bar
3-way
trust reconciliation the Bar expects, performed monthly
100%
of client trust funds that must be accounted for, no exceptions
The challenges
What makes law firms accounting hard
Trust account compliance risk
IOLTA errors, commingling, negative client ledgers, missed reconciliations, are among the fastest routes to Bar discipline. Many firms discover their bookkeeper never truly understood the three-way reconciliation requirement.
Advanced costs treated as expenses
Filing fees, experts, and deposition costs advanced for clients are generally recoverable, closer to loans than deductions. Expensing them immediately misstates profit and creates tax positions that unravel under examination.
Contingency income in unpredictable lumps
A fee landing in December versus January can swing a partner's tax bill enormously. Firms without year-round planning absorb whatever the settlement calendar dictates, with no strategy between filings.
Partner economics without clean data
Draws, capital accounts, and allocation formulas spark conflict when the books cannot support them. Origination credit and expense allocation disputes are ultimately accounting problems wearing partnership clothing.
Our approach
How we help
Bar-grade trust accounting
Monthly three-way reconciliations of your IOLTA accounts with client-level ledgers maintained to the penny, giving you documentation that satisfies a Bar auditor before one ever asks.
Matter-level cost tracking
Advanced client costs recorded as recoverable balances by matter, cleanly separated from firm operating expenses, so both your profit statements and your tax returns hold up.
Contingency fee tax planning
Settlement timing scenarios, retirement plan design, and estimated payment strategy modeled well before large fees land, converting windfall volatility into a managed multi-year tax position.
Partner-level reporting and K-1 support
Capital accounts, draws, and allocation schedules maintained accurately throughout the year, so distributions run smoothly and K-1 season involves no painful reconstruction archaeology at filing time.
Firm operations and payroll
Associate and staff payroll, benefits coordination, and overhead reporting by practice area, giving managing partners visibility into which parts of the firm actually drive profitability.
FAQ
Law Firms accounting, common questions
What does a proper three-way trust reconciliation involve?
Each month, three numbers must agree exactly: the adjusted IOLTA bank balance, the trust ledger balance in your books, and the sum of every individual client ledger. Discrepancies must be identified and resolved promptly, and the documentation retained. Florida Bar rules make this the lawyer's personal responsibility even when delegated. We perform the reconciliation monthly, keep the records inspection-ready, and flag anything unusual immediately.
How should my firm handle costs we advance for clients?
Costs you expect to recover from clients or settlements, filing fees, expert witnesses, court reporters, are generally treated as advances rather than current deductions, especially in contingency practices. They belong on the balance sheet by matter until recovered or written off. Getting this right changes both your reported profit and your tax return. We set up matter-level tracking so recovery, write-offs, and deductions all happen in the correct period.
A large contingency fee is settling soon. What should we do before it funds?
Plan before the money moves, afterward your options shrink dramatically. Depending on circumstances, the levers include timing the fee across tax years where legitimately possible, structured attorney fee arrangements, maximizing qualified retirement plan contributions, entity and compensation review, and recalibrating estimates to avoid penalties. We model the scenarios against the expected settlement so the firm and its partners keep the largest defensible share.
Should our firm be on cash or accrual accounting?
Most law firms qualify for and prefer the cash method for tax, income lands when collected, and receivables sit untaxed until paid, while internal management often benefits from accrual-style views of WIP and unbilled time. Firm size, entity type, and revenue can affect eligibility. We typically maintain tax-basis books on cash with supplemental management reporting, giving you the best of both without double bookkeeping.
Where we serve law firms
Talk to a CPA who knows law firms
Protect your license and your margins with the same engagement, call (305) 497-0552.