Law firm bookkeeping is different from ordinary small-business bookkeeping, and getting it wrong has regulatory consequences, not just messy reports. The defining feature is the split between trust money (which belongs to clients and is tightly regulated) and the firm's own office money. On top of that sit work in progress, disbursements, time billing and the metrics that actually tell a principal whether the firm is making money.

Trust versus office accounting

Trust money, settlement funds, money held on account of costs, must be kept in a separate trust account, handled under your state's legal profession rules, reconciled regularly and examined by a qualified external examiner. The office (general) account is the firm's own business money. Both have to be accurate and they are kept strictly apart. Our role is the office ledger plus support for your trust reconciliations, so your records are clean and your external examination is straightforward. We work alongside your external examiner; we do not replace that regulated role.

WIP, disbursements and lock-up

Unbilled work in progress and disbursements paid on behalf of clients are where law-firm cash quietly gets stuck. We set Xero up so WIP, disbursements and billed revenue are all visible, and so you can see your lock-up, the time between doing the work and getting paid for it, rather than guessing from the bank balance.

Time billing and the numbers that matter

We make your time-billing data flow cleanly from your practice-management system into Xero, then report the metrics that matter for a firm: revenue per fee earner, realisation (billed versus recorded), and utilisation. That is the difference between knowing you are busy and knowing you are profitable.

GST, payroll and BAS

Legal services are generally taxable, so GST coding and BAS have to be right, and payroll for employed solicitors and support staff needs STP and super handled. We keep all of it current so compliance is never the thing that trips you up.

Fixed-fee, no lock-in

Bookkeeping from $300 per month and BAS from $150, fixed monthly fees. The exact number depends on matter volume, fee earners and whether trust reconciliation support is included. You get a clear quote after a free call.

Running a firm and not sure your office books, WIP or trust reconciliations are tidy? Book a free call. No obligation, no lock-in.