Common Questions About Law Office Bookkeeping & IOLTA

Q: What is legal bookkeeping?

Legal bookkeeping is the practice of managing financial transactions specifically for law firms, including trust accounts, client expenses, and IOLTA compliance.

Q: Do I need a bookkeeper if I use Clio or QuickBooks?

Yes. While software like Clio and QuickBooks help manage transactions, a legal bookkeeper ensures accuracy, compliance, and handles reconciliation, reporting, and trust account rules.

Q: What’s the difference between legal and regular bookkeeping?

Legal bookkeeping includes managing client trust accounts, complying with bar regulations, and reconciling IOLTA accounts — things that go beyond standard business bookkeeping.

Q: Do you help with IOLTA compliance?

Yes. Tandem prepares required IOLTA reports, performs three-way reconciliation, and ensures your trust accounting remains audit-ready.

Question

What is the difference between a bookkeeper and an accountant?

Answer 1

A legal bookkeeper manages the day-to-day recording of financial transactions, such as invoices, payments, and receipts, while specializing in client trust accounting, trust account reconciliations, and ensuring compliance with legal financial regulations. An accountant takes a broader role by preparing financial statements, analyzing financial data, submitting taxes, ensuring compliance with tax laws, and assisting with tax planning and audits.

Answer 2

We will begin by providing you with a vendor services agreement with a confidentiality clause. Once the agreement is signed, we will share detailed onboarding instructions for granting "view-only" access to your bank and credit card accounts. Additionally, we will need access to your credit card processor and payroll accounts to ensure seamless setup and operation.

Answer 3

We don't offer rigid service levels but work with you to tailor our services to your specific bookkeeping needs. Our offerings range from daily full-service bookkeeping to monthly reconciliations and everything in between.

Answer 4

Tandem charges an hourly rate for services.

Answer 5

Tandem prepares all required IOLTA reports and bank reconciliation documents. Additionally, we retain all matter-related payment documentation. We can keep copies of all receipts for year-end purposes on a firm-by-firm basis.

Answer 6

Tandem prepares all year-end reports and financial statements to provide to your CPA.