---
title: "Law Firm Chart of Accounts | Ledgerbrook"
source: https://ledgerbrook.com/tools/chart-of-accounts/law-firms/
description: "QuickBooks Online chart of accounts for law firms and attorneys. Compliant IOLTA trust accounts and free QBO CSV download."
---

Industry Accounting BlueprintABA Model Rule 1.15 trust accounting rules

# Law Firms & Legal Practices Chart of Accounts

A law firm chart of accounts must strictly isolate client retainer funds into an IOLTA Trust Bank Account (1050) matched penny-for-penny to an IOLTA Client Trust Liability (2050). Retainers stay out of operating revenue until earned and billed, which prevents the commingling that most often leads to trust account discipline.

📥

QuickBooks Online Ready CSV

Includes all 34 numbered accounts, types, and official QBO detail types.

[Download QBO CSV](/downloads/chart-of-accounts/law-firms-chart-of-accounts-quickbooks.csv)

Industry Gotchas

## Key Accounts Most Bookkeepers Set Up Incorrectly

Account #1050Bank

### IOLTA Trust Bank Account

Why It Matters:

Designated escrow account holding unearned client retainers. Interest is remitted by the bank to the state's IOLTA program, never to the firm.

⚠️ Common Mistake:

Commingling operating fee revenue or paying law firm overhead directly out of this account.

Account #2050Other Current Liabilities

### IOLTA Client Trust Liability

Why It Matters:

Mirror liability representing unearned money owed to clients until billable work is completed and invoiced.

⚠️ Common Mistake:

Failing to tie out the sum of individual client matter ledger balances to this general ledger account.

Account #1250Other Current Assets

### Advanced Client Costs (Reimbursable)

Why It Matters:

Tracks court filing fees, deposition transcripts, and expert witness retainers advanced on behalf of clients.

⚠️ Common Mistake:

Expensing advanced costs as law firm overhead, creating tax discrepancies when reimbursed by settlement proceeds.

Account #4010Income

### Hourly Legal Fee Income

Why It Matters:

Recognizes fee revenue only once it is earned and billed to the client.

⚠️ Common Mistake:

Recognizing retainers as income the day the check clears the bank.

Account Hierarchy

## Complete Law Firms Account Tree

All (34)Assets (1000s)Liabilities (2000s)Equity (3000s)Revenue (4000s)COGS (5000s)Expenses (6000s)

| Code | Account Name | QuickBooks Account Type | QuickBooks Detail Type | Action |
| --- | --- | --- | --- | --- |
| 1010 | Operating Checking Account | Bank | Checking | Copy |
| 1020 | Operating Payroll Checking | Bank | Checking | Copy |
| 1050 | IOLTA Trust Bank Account (Restricted) | Bank | Trust account | Copy |
| 1100 | Accounts Receivable - Billed Legal Fees | Accounts Receivable (A/R) | Accounts Receivable (A/R) | Copy |
| 1250 | Advanced Client Costs (Reimbursable) | Other Current Assets | Other Current Assets | Copy |
| 1400 | Prepaid Malpractice Insurance & Leases | Other Current Assets | Prepaid Expenses | Copy |
| 1500 | Office Furniture & Law Library | Fixed Assets | Furniture & Fixtures | Copy |
| 1510 | Computer Hardware & Servers | Fixed Assets | Machinery & Equipment | Copy |
| 1590 | Accumulated Depreciation | Fixed Assets | Accumulated Depreciation | Copy |
| 2010 | Accounts Payable - Vendors | Accounts Payable (A/P) | Accounts Payable (A/P) | Copy |
| 2020 | Firm Operating Credit Card | Credit Card | Credit Card | Copy |
| 2050 | IOLTA Client Trust Liability | Other Current Liabilities | Trust Accounts - Liabilities | Copy |
| 2110 | Payroll Tax Liabilities | Other Current Liabilities | Payroll Tax Payable | Copy |
| 2510 | Bank Term Notes Payable | Long Term Liabilities | Notes Payable | Copy |
| 3010 | Partner Capital Contributions | Equity | Partner Contributions | Copy |
| 3020 | Partner Equity Draws | Equity | Partner Distributions | Copy |
| 3030 | Retained Earnings | Equity | Retained Earnings | Copy |
| 4010 | Hourly Legal Fee Income | Income | Service/Fee Income | Copy |
| 4020 | Contingency Fee Settlements | Income | Service/Fee Income | Copy |
| 4030 | Flat Fee Retainer Revenue | Income | Service/Fee Income | Copy |
| 6010 | Associate Attorney Salaries | Expenses | Payroll Expenses | Copy |
| 6020 | Paralegal & Legal Assistant Wages | Expenses | Payroll Expenses | Copy |
| 6030 | Administrative Support Salaries | Expenses | Payroll Expenses | Copy |
| 6040 | Employer Payroll Taxes | Expenses | Payroll Expenses | Copy |
| 6050 | Legal Malpractice Insurance | Expenses | Insurance | Copy |
| 6100 | Legal Practice Software (Clio, MyCase) | Expenses | Office/General Administrative Expenses | Copy |
| 6110 | Legal Research Subscriptions (Westlaw, Lexis) | Expenses | Dues & Subscriptions | Copy |
| 6120 | State Bar Dues & Mandatory CLE | Expenses | Dues & Subscriptions | Copy |
| 6150 | Client Intake & Firm Marketing | Expenses | Advertising/Promotional | Copy |
| 6180 | Merchant Processing & Wire Fees | Expenses | Bank Charges | Copy |
| 6200 | Office Lease & Conference Suites | Expenses | Rent or Lease of Buildings | Copy |
| 6220 | Office Utilities & High-Speed Internet | Expenses | Utilities | Copy |
| 6250 | Document Shredding & Secure Storage | Expenses | Other Business Expenses | Copy |
| 7010 | Bank Financing Interest Expense | Other Expense | Other Miscellaneous Expense | Copy |

No accounts found matching your query.

Reconciliation Rules

## Monthly Sanity Checks for Law Firms Files

- ✓Perform monthly three-way IOLTA reconciliation: Trust Bank Balance = Trust Liability = Sum of Client Matter Balances.
- ✓Transfer earned fee funds from IOLTA to Operating account via check or wire matching issued client invoices.
- ✓Review open Advanced Client Costs and ensure invoice reimbursement billing across active matters.
- ✓Confirm no individual client matter balance is negative at any point during the month.

Outsourced Production Capacity

## Managing Law Firms client files at your firm?

Ledgerbrook provides white-label cleanup, monthly close, and payroll reconciliation for accounting firms. We deliver fully reconciled books under your firm's brand starting at**$99/file**.

[View Firm Partnership →](/for-bookkeeping-firms/)

Frequently Asked Questions

## Law Firms Chart of Accounts FAQ

### How do I import this Law Firms chart of accounts into QuickBooks Online?

Download the pre-formatted QBO CSV file using the button on this page. In QuickBooks Online, click the Gear icon -> Import Data -> Chart of Accounts. Upload the CSV, map the columns (Account Number, Account Name, Type, Detail Type), and click Import. Ensure account numbers are enabled under Account and Settings -> Advanced -> Chart of accounts.

### What accounting standard does this Law Firms chart of accounts follow?

This chart of accounts is designed around the ABA Model Rule 1.15 trust accounting rules. It groups direct operating costs, tax-sensitive accounts, and subledgers to ensure accurate gross margins and CPA tax preparation.

### Can I customize this template for my specific business or firm?

Yes. Once imported into QuickBooks Online, you can add sub-accounts, rename categories to match vendor naming conventions, or delete unused accounts without breaking the core financial reporting hierarchy.