Offshore Legal Accounting Services

State bar ethics rules mandate monthly three-way IOLTA reconciliations to verify that three independent records match exactly: (1) the bank trust account statement balance, (2) the general ledger trust liability balance, and (3) the sum of all individual client matter trust sub-ledgers. Our offshore team executes audit-proof monthly reconciliations that eliminate commingling and protect your law license.

We convert approved attorney time and billing entries into standardized LEDES formats (such as LEDES 1998B), ensuring every line item contains appropriate UTBMS phase and task codes (such as L110 for Case Assessment or A105 for Communications). We upload invoices directly into corporate e-billing portals (CounselLink, Tymetrix 360, Serengeti/Thomson Reuters Legal Tracker) and resolve any rule compliance rejections promptly.

Hard costs (direct third-party litigation expenses such as court filing fees, expert witness retainers, and deposition transcripts) are recorded on the balance sheet as Advanced Client Costs (asset) rather than operating expenses. When client invoices are paid or settlements disbursed, these advances are reimbursed to the firm. Soft costs (internal overhead allocations such as photocopies or legal research) are recorded as revenue upon billing.

When a settlement check is received, it is deposited into the IOLTA trust account. Our team prepares a comprehensive settlement disbursement sheet calculating: total settlement gross proceeds, reimbursement of advanced litigation costs, medical provider lien payments, attorney contingency fee percentage (transferred to the operating account as earned revenue), and net settlement check disbursement to the client.

Yes. We track attorney realization rates at both billing (billed fees divided by standard fee value of time worked) and collection levels (collected cash divided by billed fees). We apply partner agreement formulas incorporating origination credits, working attorney shares, firm overhead splits, and calculate monthly partner equity draws.

We maintain strict segregation between client trust funds and firm operating capital. Retainers remain in trust until invoices are approved, earned fees are transferred promptly without leaving excess firm funds in trust, and negative client ledger balances are strictly prevented.

Our offshore legal accountants operate across major legal platforms including Clio (Clio Manage & Clio Grow), MyCase, CosmoLex, PracticePanther, Smokeball, TimeSolv, Tabs3, Bill4Time, NetSuite, QuickBooks Online, and Xero.

Law firms using our offshore accounting team experience faster monthly billing generation, prompt retainer replenishment reminders, automated e-billing submissions, and proactive aged accounts receivable follow-ups, reducing collection cycles by up to twenty days.