Legal and Professional Accounting Michigan

Accounting for Law Firms and Professional Services in Michigan

Our CPA, CMA, and highly experienced accountants support legal professionals throughout Macomb County and Oakland County, offering specialized accounting that aligns with the way law firms operate, bill, and manage trust accounts.

Below is a clear overview of how our monthly accounting process works, along with key considerations specific to law firms and professional service practices.

Our Legal and Professional Services Accounting

1. Legal Time and Billing Tracking

• Capture and record billable hours and expenses by client or matter.
• Use integrated time-tracking and billing applications that sync directly with QuickBooks.
• Generate accurate invoices based on billable hours and reimbursable expenses.

2. IOLTA Trust Accounting

• Manage IOLTA trust accounts in full compliance with Michigan regulations.
• Integrate Clio, LeanLaw, and PracticePanther with QuickBooks.
• Record and reconcile trust deposits, disbursements, and transfers accurately.

3. Expense Allocation

• Allocate shared overhead and case-related expenses fairly among matters.
• Customize QuickBooks expense accounts for industry-specific categories.
• Ensure transparent and consistent allocation across matters and clients.


4. Retainer Management

• Track client retainers and maintain accurate balances.
• Record retainer receipts and apply funds to invoices using integrated tools.
• Ensure proper handling of advance payments.

5. Matter and Project Cost Tracking

• Assign costs to individual matters or engagements.
• Monitor case expenses using integrated project-management tools.
• Improve visibility into profitability by client or matter.

6. Expense Reimbursement

• Process employee reimbursements accurately.
• Use expense tools that sync with QuickBooks.
• Ensure compliance with billing and tax rules.

7. Income and Expense Categorization

• Categorize revenue such as legal fees and consultation fees.
• Track court costs and disbursements accurately.
• Maintain consistent categorization for clean financial reporting.

8. Cost Recovery

• Track recoverable expenses like filing fees and expert costs.
• Integrate cost recovery tools with QuickBooks.
• Ensure all reimbursable costs are captured and invoiced.

9. Retention of Client Funds

• Follow regulations for unearned fees and retainers.
• Record unearned balances properly in QuickBooks.
• Ensure compliance with Michigan-specific trust rules.

10. Financial Reporting

• Profit and loss reporting by client, matter, attorney, or partner.
• Accounts receivable aging and realization tracking.
• Cash flow, performance, and trend analysis.

Ready to simplify your firm’s accounting?

Contact us today to schedule your free discovery call.

We provide law firm accounting throughout Oakland County: Bloomfield Hills, Birmingham, Troy, Rochester Hills, and Auburn Hills, Michigan.

We also provide law firm accounting throughout Macomb County serving Shelby Township, Sterling Heights, Clinton Twp, Washington and Romeo Michigan