Our Trust Accounting Process

Harbor Bookkeeping LLC follows structured bookkeeping procedures to help law firms maintain organized trust accounting records.

Our process typically includes:

• Recording trust account transactions in the accounting system and organizing documentation

• Maintaining trust account check register

• Maintaining individual client trust ledgers

• Performing monthly three-way trust account reconciliations

• Reviewing trust account activity for consistency with billing records

• Providing organized reports to support financial review

These procedures are designed to support accurate trust accounting records and assist law firms in maintaining organized documentation. Attorneys remain responsible for final oversight and compliance with applicable state bar regulations.

What is a three-way trust reconciliation?

A three-way reconciliation compares the trust account bank balance, client trust ledger balances, and accounting records to ensure that all trust funds are properly accounted for.

Do you work with legal practice management systems?

Yes. Harbor Bookkeeping LLC works with common legal billing and practice management systems including Clio, Smokeball, PracticePanther, and MyCase.

How often should a law firm reconcile its trust account?

Trust accounts should generally be reconciled monthly. Regular reconciliation helps identify discrepancies early and supports accurate trust accounting records.

What records should law firms maintain for trust accounts?

Law firms should maintain trust account bank statements, client trust ledgers, transaction records, and reconciliation reports to help demonstrate proper handling of client funds.

Do solo attorneys and small law firms need trust accounting support?

Many solo attorneys and small law benefit from bookkeeping support to help maintain organized trust account records and perform regular reconciliations while focusing on their legal practice.

What are the benefits of virtual bookkeeping services?

Virtual bookkeeping allows businesses and law firms to receive professional accounting support without the need for on-site staff. Clients benefit from secure cloud-based accounting systems, organized financial records, and consistent reporting while maintaining convenient access to their financial information from anywhere.

How do clients share documents with a virtual bookkeeper?

Most documents can be shared securely through cloud storage, encrypted email, or document management systems. Many financial institutions and accounting platforms also allow secure access for bookkeeping purposes.