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By Tammy Hoang, Certified QuickBooks ProAdvisor Here is something most New York attorneys don't realize: the Appellate Division's rules have authorized a random audit program for attorney trust accounts since 1994. It has simply never been implemented. Today, a New York trust account only gets examined if a client files a complaint or a bank reports a dishonored check — there is no proactive, random compliance check the way New Jersey, North Carolina, Florida, and Texas all r

By Tammy Hoang, Certified QuickBooks ProAdvisor Managing a trust or escrow account is a fundamental part of legal practice, and there are several pitfalls attorneys must actively avoid to stay compliant and protect both client interests and their professional standing. Firms often use the two terms interchangeably. In California, the rule calls the account a "Trust Account," and the duties are the same either way. Most lists of trust account pitfalls tell you what to avoid. T

By Tammy Hoang, Certified QuickBooks ProAdvisor Occasionally, disagreements arise over who is entitled to funds held in a client trust account. A lienholder questions the amount owed, a client contests a fee, or a condition on a settlement is still unmet. In these situations attorneys must act with care. The portion of the funds in dispute stays in the trust account until the issue is resolved. It cannot be released to either party prematurely. Only the undisputed funds may b

By Tammy Hoang, Certified QuickBooks ProAdvisor New York imposes strict rules on the management of an attorney escrow account to protect client funds and maintain public trust. Lawyers must keep client money in clearly identified, separate trust or escrow accounts, and mixing it with personal or operating funds is prohibited. Even when no loss occurs, commingling client funds or misusing them can lead to disciplinary action, and a lawyer who holds funds as a fiduciary can als

By Tammy Hoang, Certified QuickBooks ProAdvisor Rule 1.15 lays out the foundation for how attorneys must handle client funds and property. In essence, it requires lawyers to act as trusted stewards when holding money or belongings that belong to clients or third parties. Its primary goal is to ensure those assets are never mixed with the lawyer's own funds and are protected against misappropriation, which is why avoiding commingling client funds sits at the center of the rule

By Tammy Hoang, Certified QuickBooks ProAdvisor Lawyers are held to a high standard when it comes to handling client funds, and for good reason. Failing to keep client money separate from personal or business accounts — whether by accident or intent — can have serious repercussions. In practice, commingling client funds sets three consequences in motion at once: professional discipline, personal financial liability, and, when client money is actually lost, repayment duties th

By Tammy Hoang, Certified QuickBooks ProAdvisor Ask most attorneys about their IOLTA account and you'll get a confident answer: "It's fine, we reconcile it every month." Ask what actually happens between those monthly reconciliations, and the confidence usually drops. California State Bar Rule 1.15 requires attorneys who handle client money to maintain a compliant IOLTA account with separate ledgers for each client and monthly three-way reconciliation — but the reconciliation

By Tammy Hoang, Certified QuickBooks ProAdvisor Managing a law firm means juggling casework, clients, and a unique set of financial responsibilities. Unlike general business bookkeeping, law firm accounting comes with strict compliance requirements — especially when it comes to handling client funds and trust accounts. Even a small error can have serious professional and financial consequences. A reliable law firm bookkeeping system does more than keep your numbers accurate.

By Tammy Hoang, Certified QuickBooks ProAdvisor Regular weekly reviews of your QuickBooks Online account keep your law firm's finances precise and up to date. By doing this consistently, you'll quickly spot errors, identify incorrect transaction entries, and catch trust accounting discrepancies long before they become a problem. Weekly check-ins take only minutes but help your law practice run smoother, stay compliant, and make smarter financial moves without added stress. He

By Tammy Hoang, Certified QuickBooks ProAdvisor Modern law firms rely on streamlined systems to track every client payment with precision. By integrating solutions such as Clio and QuickBooks Online, your firm can automate much of the payment recording process — eliminating double entry and reducing human error. For firms handling client trust account reconciliation alongside regular billing, that automation is not a convenience feature. It is what keeps two separate financia

By Tammy Hoang, Certified QuickBooks ProAdvisor Checking your financial records only once a year — when the tax man comes knocking — just doesn't cut it for busy law firms. Staying on top of your law firm bookkeeping all year long is key to spotting discrepancies early, protecting client trust funds, and catching errors before they snowball into headaches or, worse, disciplinary issues. Continuous financial review keeps you in sync with IOLTA requirements, quickly flags any u