I cannot endorse Lazar Accounting Solutions highly enough. Their assistance has been transformative to my law firm’s many-faceted bookkeeping challenges, in so many ways that far surpass many years of internal bookkeeping efforts.
Law firms must follow strict trust accounting rules, and New Jersey’s Office of Attorney Ethics runs random trust account audits, and in New York, grievance committees review escrow records when problems arise, such as a bounced escrow check..
In states such as New York and New Jersey, law firms must maintain detailed trust accounting records and be prepared to provide them quickly if requested during a bar association audit.
Because trust accounting errors can have serious consequences for attorneys, we focus on helping law firms maintain clear records, accurate reconciliations, and organized financial systems.
At Lazar Accounting Solutions, we help law firms maintain organized financial systems and ensure trust accounts and financial records remain accurate and compliant.
We specialize in law firm bookkeeping, with a focus on trust accounting, 3-way reconciliations, and maintaining organized financial records for legal practices.
Lazar Accounting Solutions provides law firm bookkeeping and trust accounting support for attorneys in New York and New Jersey.
Our services include:
Missing or incomplete 3-way reconciliations
Trust accounts that don’t match client ledgers
Negative client balances in trust accounts
Bank fees accidentally reducing client funds
Disorganized or incomplete client trust ledgers
Difficulty producing records during a bar association audit
We help law firms organize their financial systems, correct these issues, and maintain accurate records going forward so they can remain compliant and prepared for any review.
Maintain accurate trust and IOLTA accounting records
Perform consistent monthly 3-way reconciliations
Keep client ledgers and trust balances organized
Stay prepared for potential bar association audits
Our goal is to help attorneys maintain financial systems that are organized, compliant, and easy to manage.
The firm has never been performing monthly 3-way reconciliations
A bar association audit notice has been received
Trust account balances do not match client ledgers
The firm is unsure whether trust accounting rules are being followed correctly
A new attorney or partner is taking over financial oversight of the firm
If any of these situations sound familiar, it may be a good time to review your firm’s trust accounting records and reconciliation process.
New York (IOLA). Rule 1.15 of the New York Rules of Professional Conduct requires attorneys to keep detailed records of escrow funds for seven years. Grievance committees expect accurate, reconciled records in any review. A proposed amendment to Rule 1.15 would formally require a three-way reconciliation at least every 60 days. We recommend monthly.
New Jersey (IOLTA). Under Court Rule 1:21-6, trust account balances must be reconciled every month, and reconciliation records must be kept for seven years. The Office of Attorney Ethics has run random audits of attorney trust accounts since 1981.
If your firm needs help maintaining accurate trust accounting records and monthly 3-way reconciliations, or organizing its financial systems, feel free to reach out for a consultation.
It matches three numbers every month: your trust account bank balance, your trust account ledger, and the total of all individual client ledgers. If all three agree, your records are in balance. If not, we find and fix the difference.
In New Jersey, monthly reconciliation is required under Court Rule 1:21-6. In New York, accurate records are required under Rule 1.15, and a proposed amendment would require a three-way reconciliation at least every 60 days. Either way, it’s the best protection in an audit.
Both are programs for holding client funds that are too small or held too briefly to earn meaningful interest for the client. The interest funds legal services. New York calls it IOLA, and New Jersey and most other states call it IOLTA.
Yes. We reconstruct client ledgers from bank and matter records, reconcile past periods, and set up a clean monthly process going forward.
Contact us right away. We’ll organize your records, complete any missing reconciliations and help you prepare what the reviewer will ask for.
Software like Clio, LeanLaw or PracticePanther records transactions, but someone still has to review, reconcile and fix discrepancies every month. That’s what we do.
All documents are shared through our secure client portal, not email. Only your firm and our team can access your files.
No. We’re accountants, not a law firm. We maintain and reconcile your records. Questions about your ethical obligations should go to your ethics counsel or bar association.
Book a free Zoom consultation and we’ll look at where your business stands and what would help most.