Law Firm Tax & Accounting Services

As a law firm owner or managing partner, you know that great legal work isn’t enough to build a truly profitable practice. You’re juggling client demands, court deadlines, partner expectations, and staff management, while also trying to keep an eye on cash flow, partner draws, IOLTA compliance, and taxes.

Most firms are flying blind: outdated books, unclear numbers, and reactive tax planning that leads to surprise bills and missed opportunities. Hiring an in-house bookkeeper or “generalist” CPA often just adds to the complexity.

That’s where we come in. At Cloud Accounting Group, we specialize in helping law firms get total clarity and control over their finances. When you outsource to us as your law firm accounting and tax partner, you get a modern, cloud-based system and a team that understands how law firms really work.

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Law Firm Accounting Services

We provide specialized accounting and tax services for small and mid-sized law firms, including:

Law firm bookkeeping (designed around your practice management system)
Trust/IOLTA accounting and 3-way reconciliations
Partner compensation, equity, and draws planning
Law firm payroll & contractor payments
Law firm tax planning (entity structure, partner distributions, estimated taxes)
Year-end business and owner tax preparation
Multi-entity and multi-state firm tax compliance
Budgeting, forecasting, and cash flow planning for law firms
KPI dashboards (realization, utilization, WIP, and profitability by practice area)
Clean-up projects for messy or behind books
Sales and use tax (where applicable), plus local filing requirements

If your firm has at least 5+ team members and $750K+ in annual revenue, we can help you build a financial system that actually supports your growth instead of holding it back.

Our Proven Approach to Law Firm CPA Services

We aim to be your end-to-end finance department, from day-to-day bookkeeping and trust accounting to long-term tax strategy and profit planning. But we don’t just “do the books.” A huge part of our value is ongoing, unlimited support so your partners always know where you stand financially and what to do next.

When you search for “law firm accountants near me,” you’ll see plenty of generic options. Here’s what makes our approach different, and why firms stay with us year after year.

We do things this way because it gives you maximum benefit with minimum hassle. Everything we build is designed to grow with your firm. As you add partners, staff, and new practice areas, your financial systems and tax strategy evolve right alongside you.

You’ll get 24/7, real-time access to your numbers through the cloud and simple reports that actually make sense to non-accountants. And because we don’t outsource anything, you always know exactly who’s touching your books and your IOLTA. Our team is based in the United States and understands the nuances of U.S. law firms.

Most importantly, we operate on transparent, flat-fee pricing, no surprise hourly bills. You’ll see clear packages, options, and what’s included up front. No hidden fees. Ever.

Learning Phase

We get to know your practice areas, billing structure, trust/IOLTA setup, partner compensation, and your 12–36 month financial goals.

Plug and Play

We help you choose a package that fits your stage—lean firm, growing firm, or multi-partner—then tailor your software, cadence, and tax strategy accordingly.

Collaborating

We integrate tools, design workflows, set up partner dashboards, and train your team on collaboration and data sharing best practices.

Support & Reports

You get ongoing financial snapshots, trust reconciliations, forecasts, and decision-ready insights—with unlimited access to our team.

Frequently Asked Questions

What is your experience in law firm accounting?

We have extensive experience working with law firms of all sizes, from solo and small practices to growing multi-partner firms. We understand the unique financial and tax challenges of:

Business and corporate law firms
Litigation and mass tort practices
Real estate and transactional firms
Family law, estate planning, and other specialty practices

We know the difference between generic small-business accounting and true law firm accounting: IOLTA compliance, fee-sharing, advanced retainers, contingency fees, WIP, and revenue recognition. Our job is to help you stay compliant, profitable, and prepared at tax time—without asking you to become a part-time accountant.

Do you understand IOLTA and trust accounting rules?

Yes. Trust/IOLTA compliance is one of the core reasons law firms choose us.

We follow state bar rules for client trust funds
Perform proper 3-way reconciliations (bank, client ledger, and trust ledger)
Help design workflows for retainers and settlements
Ensure separation of operating and trust funds

Our goal is simple: you should never have to worry about a trust-accounting issue putting your license, or your reputation, at risk.

Do you replace our current CPA or work with them?

We can work either way. Some firms bring us in to fully replace their accounting and tax provider. Others keep their CPA and bring us in for:

Day-to-day bookkeeping
Law-firm-specific reporting and KPIs
Cleanup and systems design

On your introductory call, Tony will walk through your setup and help you decide what makes the most sense.

Can you help us with budgeting and forecasting for our firm?

Absolutely. We help firms:

Build realistic forecasts
Plan draws and bonuses
Model hiring and investments
Understand how decisions affect taxes

If you’re a managing partner with big goals who’s tired of guessing and reacting, we’d love to help.

Book a call today to see how Cloud Accounting Group can support your firm’s growth and profitability.