Accounting for Law Firms
Clean bookkeeping, trust accounting support, and financial reporting for US law firms and legal practices. Automation + expert review for compliance-ready books.
Law firms operate under strict financial compliance requirements — especially around trust accounts, client funds, and billing. Balenta delivers clean monthly close, proper separation of operating and trust funds, and financial reporting that keeps your practice compliant and your partners informed.
Common Pain Points We Solve
- →Trust account and operating account entries get mixed.
- →Billing and collections tracking is manual and inconsistent.
- →Partner draws and distributions are hard to reconcile.
- →Monthly close is delayed due to missing time/billing data.
- →Expense categorization by practice area is unclear.
- →Tax-ready books are not maintained year-round.
What We Do for This Industry
- →Separation of trust vs operating account transactions
- →Monthly close with partner-ready reporting pack
- →Billing and AR reconciliation support
- →Expense categorization by practice area
- →Tax-ready documentation and year-end prep
- →1099 tracking for contract attorneys
KPIs Worth Tracking
- →Revenue by practice area
- →Realization rate
- →AR aging by client
- →Partner distribution tracking
- →Overhead ratio
- →Trust account balance reconciliation
- →Cash flow vs billings
- →Cost per matter (proxy)
Common Mistakes to Avoid
- →Mixing client trust funds with operating funds
- →Not reconciling billing system to bank monthly
- →Letting AR aging grow without follow-up
- →No partner draw policy tracked in books
- →Missing 1099s for contract attorneys
Recommended Tools
Law Firms — Common Questions
We support proper separation and reconciliation of trust vs operating accounts. For full IOLTA compliance sign-off, we coordinate with your legal compliance advisor.
Yes. We work with exports from legal billing platforms like Clio and MyCase to reconcile billings against your accounting records.
Yes. We track partner draws and distributions monthly and include them in your reporting pack.
We track contractor payments throughout the year and prepare 1099 documentation at year-end.
Yes. We set up reporting that gives each partner visibility into firm financials and individual compensation tracking.
Yes. All services are delivered 100% remotely to US-based law firms across all time zones.
Simplify Your Financial
Management Today
Automation for speed, human review for accuracy, and confidentiality-first handling of your financial data.