How to Choose the Right IOLTA Accounting Partner

Aug 20

If you’re a solo attorney or run a boutique firm, you already know that trust accounting isn’t optional—it’s a non-negotiable part of running an ethical, compliant practice. But knowing you need help is only step one. Finding a provider who actually understands IOLTA compliance and can support your firm long-term? That’s where it gets tricky.

Here’s what to look for when choosing an IOLTA accounting partner—and what red flags to avoid.

1. Look for experience with IOLTA compliance (not just bookkeeping)

Plenty of general bookkeepers claim they can handle trust accounting. But IOLTA accounts are governed by strict rules that vary by state, and the penalties for mismanagement can be severe.

Ask questions like:

Do they have experience working with firms in your state?
Can they explain three-way reconciliations and audit trails without Googling it?
Are they familiar with your state bar’s trust accounting requirements?

If the answer is no—or if they treat trust accounting like “just another bank account”—keep looking.

2. Prioritize specialization in legal accounting

Trust accounting doesn’t exist in a vacuum. Your provider should also understand how trust workflows integrate with your operating account, invoicing, client costs, and casework.

That means:

They’ve worked with Clio, MyCase, or other legal-specific platforms.
They understand the ethical boundaries between client funds and firm funds.
They can help you avoid co-mingling, overdrawn balances, and other compliance risks.

Legal accounting is a niche for a reason. You want someone who lives and breathes it—not someone who’s learning on your dime.

3. Ensure they offer proactive support (not just reports)

A good IOLTA partner doesn’t just send over numbers once a month—they help you understand what those numbers mean, and how to act on them.

Look for a team that:

Flags errors and red flags before they become liabilities
Helps you set up proper workflows for deposits, disbursements, and reconciliation
Is responsive to questions and quick to offer guidance

You’re not just buying a service. You’re buying peace of mind.

4. Ask about their internal review process

Even the best professionals make mistakes—but your provider should have a system in place to catch them before the bar association does.

Ask:

Who reviews the books?
What internal controls are in place?
How often are reconciliations reviewed for accuracy?

If their answer is “we trust our team,” that’s not good enough. You need a second set of eyes—and ideally, a third.

5. Make sure they understand your firm’s growth goals

Your IOLTA partner shouldn’t just keep you compliant today. They should be ready to grow with you as your caseload, team, and financial complexity evolve.

Look for a partner who: