LedgerMatch
Bank Reconciliation Software for Law Firms & Legal Practices
Law firms operate with two distinct types of bank accounts — the operating account for business expenses and the IOLTA trust account for client funds — and both must reconcile perfectly every month. State bar associations require attorneys to maintain accurate trust account records, and a trust account reconciliation error can trigger a bar complaint or disciplinary action. LedgerMatch helps law firm bookkeepers reconcile both operating and trust account bank statements against QuickBooks or Xero in under 10 minutes, with a clean audit trail for every transaction.
Common reconciliation challenges for law firms
- IOLTA trust accounts must reconcile to the penny every month — a single unmatched entry can trigger a state bar compliance issue
- Retainer deposits received into trust and then earned fees transferred to operating account create complex interaccount flows that are hard to track manually
- Court filing fees, process server payments, and expert witness fees often show up in bank statements with generic descriptions that don't match the vendor name in QuickBooks
How LedgerMatch helps
- Run separate reconciliation sessions for operating and trust accounts — each session produces its own clean report, keeping IOLTA funds completely separate
- Fuzzy description matching catches court fee payments and vendor disbursements even when the bank description differs from the payee name in QuickBooks
- Exception queue lets you flag and annotate retainer-to-earned fee transfers with a clear note — the annotation exports to the audit trail for bar compliance documentation
Industry note
Most state bar associations require monthly three-way trust account reconciliation — bank statement, client ledger, and trust account ledger must all match. LedgerMatch handles the bank-to-ledger portion, giving law firm bookkeepers the bank reconciliation report they need to complete the three-way reconciliation.
Common banking and accounting tools
- Wells Fargo
- Chase
- Bank of America
- TD Bank
- PNC Bank
- QuickBooks Online
- Clio Manage
- CosmoLex
- TimeSolv
Explore related resources
Install LedgerMatch
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