How to Choose a Bookkeeper for Your Law Firm
The right bookkeeper for a law firm understands trust accounting, works with your practice management and accounting software, and delivers reports you can actually use. Whether you hire someone in-house or outsource, ask about experience, process, and review before you commit.
What to Look For
Trust accounting experience: monthly three-way reconciliations and client ledgers
Software fit: experience with your practice management software, such as Clio, MyCase, or Timeslips, and your accounting system, such as QuickBooks Online, Xero, or FreshBooks
A review process: someone other than the bookkeeper checks the work
Clear deliverables: what you’ll receive each month, and when
Room to grow: access to controller or CFO-level support as the firm grows
Questions to Ask a Bookkeeper
What experience do you have with law firms, and in which practice areas?
How do you perform three-way trust reconciliations?
Which practice management and accounting software do you use?
What reports will we receive each month, and when?
Who reviews your work?
What happens if our books are behind when we start?
How do you keep our data secure?
Red Flags to Watch For
Unfamiliar with trust accounting or three-way reconciliations
Suggests recording retainers as income
No clear monthly deliverables or timeline
Only one person knows how your books are kept, with no backup
Can’t explain the reports they produce
In-House or Outsourced?
Both can work. The right choice depends on your firm’s size, volume, and need for trust accounting expertise. See: Outsourced vs. In-House Bookkeeper for Law Firms
What to Expect When You Start
A review of where your books stand today
Any catch-up work needed to get current
A monthly schedule for reconciliations and reports
Regular check-ins to review the numbers with you
How Azar Insights Helps
Experience with many law firms across different practice areas, from family law to business transactional work
Law firm bookkeeping with monthly trust reconciliation
Work in Clio, MyCase, Timeslips, QuickBooks Online, Xero, and FreshBooks
Fractional controller and CFO support as your firm grows
Frequently Asked Questions
What does a law firm bookkeeper do?
They record transactions, reconcile bank and credit card accounts, reconcile trust accounts, and produce monthly financial statements. Many also help with billing software and reporting.
Does my bookkeeper need law firm experience?
It helps a great deal. Trust accounting, retainers, and advanced client costs are handled differently in law firms than in most businesses.
What should a bookkeeper deliver each month?
At minimum, reconciled bank and trust accounts, a profit and loss statement, and a balance sheet. Many firms also want receivables aging and key performance numbers. See Monthly Law Firm KPIs.
How do I switch bookkeepers?
Start with a review of where the books stand. The new bookkeeper may need to finish catch-up work before monthly bookkeeping begins.
Can a bookkeeper work with our firm remotely?
Yes. With cloud-based accounting and practice management software, a bookkeeper can work securely from anywhere. We work with law firms nationwide.
Related Reading
Outsourced vs. In-House Bookkeeper · Trust Account & IOLTA Reconciliation · Clio & QuickBooks Bookkeeping
About Azar Insights
Azar Insights provides outsourced bookkeeping, accounting, and fractional controller and CFO services for law firms nationwide. With 15 years of accounting experience, we work remotely with solo attorneys and multi-partner firms using secure, cloud-based tools.