Accounting for Attorneys

If your firm is running on a generic QuickBooks setup (the kind that comes pre-loaded with accounts designed for a contractor or retail shop), you're not alone. It's one of the most common things we see when we step into a new client's books. And it's one of the first things we fix.

A law firm's chart of accounts isn't complicated, but it does need to be right. Getting it right from day one gives you an adaptable framework, simplifies the accounting complexities that come with managing a legal practice, and keeps you compliant with bar requirements. Getting it wrong means reconciliation headaches, unreliable financial reports, and real exposure if you're ever audited.

Here's what a properly structured law firm chart of accounts looks like, and why each piece matters.

Start With the Balance Sheet

Assets

Assets are anything owned by the firm. For most law firms, this means:

• Cash accounts: operating checking, trust checking, payroll, and petty cash
• Fixed assets: office furniture,
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