Bookkeeping, in general, for law firms can be trickier than it sounds, let alone trying to tackle it all at year end. Nothing is worse than spending time during the holidays trying to figure out a year's worth of financials in order to get them to your CPA before the filing deadline. This is true for all small business owners, but especially true for lawyers and attorneys. Law firms, and ultimately the owners, are held to strict compliance standards by state regulatory boards and if anything is out of order during an audit, the law
firm's license could be revoked and the doors forced closed. Some small firms may risk it and go this route, but it's not the least bit healthy for many reasons. Keeping track of the transactions within the Interest On Lawyers Trust Account (IOLTA for short and also called Client Trust Account by some) does require some extra attention since it's not as straight forward as one may think. The last thing a law firm should be doing this time of year is having one of the partners sitting down and trying to make sense of the bookkeeping system instead of going out there and getting new business. The costs of this outweigh the reward.