For managing partners and firm administrators
Financial Clarity™
for law firms.
IOLTA trust accounting, three-way reconciliation, WIP and realization reporting, and audit-ready firm financials. One team. No rotating pod.
16+
Law firms
8 – 150 attorneys
$620M+
Client annual revenue
Under management
100%
Three-way reconciliation
Zero IOLTA findings
Trusted by managing partners at:
Law firms operate under accounting conditions ABA Model Rules require — but bookkeepers rarely understand.
01Client trust funds are not firm revenue. They sit in IOLTA accounts, ledgered per matter, three-way reconciled monthly. ABA Model Rule 1.15 makes the rules clear. State bar audits enforce them. The cost of a missed reconciliation isn’t a restated balance sheet — it’s a bar finding.
02Most firms hire bookkeepers trained on corporate GAAP. The result is books that pass at a small firm and fail under a bar audit, a partnership transition, or a malpractice insurance carrier review.
03Debit & Co treats law firm accounting as its own discipline. Three-way reconciliation, IOLTA interest remittance, WIP and realization mechanics, partner compensation accounting, and audit-ready substantiation — built for the way firms actually run.
When to engage Debit & Co.
Most engagements begin with three or more of these eight conditions.
- Client trust reconciliations rely on the bank statement alone, not the three-way method.
ABA Model Rule 1.15 violation; bar discipline risk. - IOLTA interest is not separately tracked and remitted to the state bar foundation.
State bar audit finding; firm fine. - Advanced client costs are commingled with firm operating expenses.
Cost recovery underreported; tax timing wrong. - WIP is reported in dollars but not by attorney, by matter, or by realization rate.
Capacity decisions blind; rate increases unsupported.
- Settlement disbursements bypass the formal trust accounting workflow.
Misappropriation risk; insurance carrier exposure. - Partner compensation calculations rely on origination data that hasn’t been audited.
Compensation disputes; partnership dissolution risk. - The firm has grown 25%+ but the chart of accounts hasn’t been restructured.
Reporting drift; management decisions on noisy data. - Contingency fee revenue is recognized at settlement check, not at earned date.
Tax timing wrong; cash basis violation if accrual elected.
The Financial Clarity™ framework.
Three pillars. Every engagement maps to them.
01
Clean.
Close completes within five days. Reconciled financial statements support partnership meetings. WIP and realization remain visible by attorney and matter.
02
Compliant.
Trust accounts use three-way reconciliation each month. Client ledgers stay organized by matter. IOLTA interest tracking supports audit readiness.
03
Communicable.
Partner reports follow a monthly cadence. WIP, realization, and compensation are reported by attorney. Diligence materials remain buyer-readable.
Comprehensive Bookkeepers, Budget & Forecast, and 1099 & Vendor Compliance support close, planning, and case-vendor compliance.
Six functions. A coordinated service model.
Each function maps to a named Debit & Co. service, with defined responsibilities and reporting. The engagement mix reflects attorney count, trust account complexity, and practice areas.
IOLTA Trust Accounting & Three-Way Reconciliation
Per-matter client ledger. Three-way reconciliation monthly. IOLTA interest tracking and state bar remittance. Audit-ready substantiation.
Pillar: Compliant · Delivered by: Staff Accountants
Monthly Close & Firm Financial Package
Five-day monthly close. Reconciled to the dollar. Partner financial section drafted ten business days before each partnership meeting.
Pillar: Clean · Delivered by: Comprehensive Bookkeepers
WIP, Realization & Cash Flow Modeling
WIP by attorney, by matter, by practice area. Realization rate trending. Cash flow forecasting calibrated to billing and collection cycles.
Pillar: Clean · Delivered by: Budget & Forecast
Practice Metrics & Partner Reporting
Origination credit reconciliation. Realization, utilization, leverage by practice. Partner-by-partner compensation reporting. Same packet, every month.
Pillar: Communicable · Delivered by: Outsourced Finance Department
Case Cost & Settlement Accounting
Advanced client cost tracking. Recovery reconciliation. Settlement workflow with trust accounting integration. Contingency fee recognition methodology defensible to auditors.
Pillar: Compliant · Delivered by: 1099 & Vendor Compliance
Partnership / Merger Diligence Readiness
Diligence data room maintained continuously. Three-statement model. Partner equity reconciliation. Realization history. Buyer-readable financials.
Pillar: Communicable · Delivered by: Staff Accountants
A sample monthly law firm financial package, delivered to your inbox.
Representative page from a 40-attorney boutique firm engagement. Identifiers redacted. Includes IOLTA three-way reconciliation, WIP and realization dashboard, partner compensation distribution. Delivered by the 5th business day.
Single email. No newsletter signup.
✓ On its way.
Thanks — we’ll email the sample within 1 business day.
Questions in the meantime? Email info@debitandco.com.
Leadership
The leadership behind your Financial Clarity™.
Founding Partner & Senior Controller
Aaron Ressel
20 years building high-performing accounting teams. Reviews every client deliverable for accuracy, GAAP compliance, and strategic value.
Founding Partner & CFO
Kevin Cahill
Brings seasoned CFO-level strategic insight to every engagement. Helps clients shift from reactive accounting to proactive financial management.
Where Debit & Co fits.
Specificity is a service. The list below is honest.
Engages well with:
- Law firms with 8 to 150 attorneys
- Single-state or multi-state practices
- Firms with IOLTA trust accounts
- Managing partners or firm administrators wanting one team, not a rotating pod
- Firms expecting bar audit, merger, or partner transition within 18 months
- Firms on accrual-basis accounting (or transitioning)
Not the right fit:
- Solo practitioners on simple cash-basis accounting
- Public-interest legal aid organizations (501(c)(3) doctrine applies)
- Firms requiring same-day chat support more than monthly precision
- Firms needing case management software setup (Debit & Co partners with Clio / PracticePanther specialists; coordination included)
Frequently asked.
We already have a bookkeeper. Why switch mid-year?
Yes. You can switch mid-year while preserving the audit trail. Migration takes 14 business days. Debit & Co. reconciles every account, including trust accounts, back to opening balance. For books that are already behind, Catch-Up & Reconciliation reconciles missed months and prior periods before the ongoing close.
How is Debit & Co different from generalist accounting firms?
Three differences. First: a single team per engagement, not a pod with rotating leads. Second: Staff Accountants who perform three-way reconciliation and defend IOLTA positions to bar auditors. Third: a published monthly cadence — close by day five, partner financial section drafted ten days before each partnership meeting.
Will Debit & Co handle IOLTA compliance?
Yes. Three-way reconciliation is performed monthly. Client ledger maintained per matter. State bar IOLTA interest remittance handled. Audit-ready substantiation included. Firm bar registration coordination managed.
How fast is onboarding?
Fourteen business days from signed engagement to first close delivered. Onboarding includes prior-period reconciliation, IOLTA three-way baseline, WIP capture, and integration with Clio, PracticePanther, Tabs3, MyCase, or QuickBooks.
What’s included in the monthly close packet?
Reconciled P&L, balance sheet, cash flow. IOLTA three-way reconciliation. Trust account ledger by matter. WIP dashboard by attorney and by matter. Realization rate trend. Partner compensation distribution roll-forward.
Does Debit & Co. handle tax returns?
Yes. Debit & Co. prepares federal and state returns from the live ledger through Tax Services. A licensed CPA partner reviews and signs each return under one engagement.
How is pricing structured?
Pricing depends on attorney count, trust account complexity, practice areas, and selected services. Catch-Up & Reconciliation starts at $2,000 when missed months or prior periods need reconciliation.
Ready for Financial Clarity™?
Book a 30-minute discovery call. Tell us your situation, we’ll be honest about fit, and you get a custom proposal in 48 hours.