Law firm chart of accounts template

This is a complete, legal-specific chart of accounts for a small law firm, with numbered accounts across assets, liabilities, equity, revenue, and expenses. It adds the accounts a general business template leaves out: an IOLTA trust bank account and matching client trust liability, per-client sub-ledgers, partner capital and draw accounts, unbilled fees, reimbursed client costs, and revenue split by practice area. Copy it, adjust the numbers to your firm, and use it in QuickBooks Online or any accounting system.

The full chart of accounts

1000 to 1999: Assets

Number	Account name	Type
1000	Operating checking	Bank
1010	Operating savings	Bank
1050	IOLTA trust bank account	Bank (trust)
1100	Accounts receivable	Accounts receivable
1110	Unbilled fees and work in progress	Other current asset
1150	Advanced client costs (recoverable)	Other current asset
1200	Prepaid expenses	Other current asset
1300	Security deposits	Other asset
1400	Office equipment and furniture	Fixed asset
1500	Accumulated depreciation	Fixed asset (contra)

2000 to 2999: Liabilities

Number	Account name	Type
2000	Accounts payable	Accounts payable
2100	Credit cards payable	Credit card
2200	Accrued payroll	Other current liability
2300	Payroll taxes payable	Other current liability
2400	Client trust liability (IOLTA)	Other current liability
2400.1	Client trust, sub-ledger per client or matter	Sub-account of 2400
2500	Unearned fees and retainers	Other current liability
2600	Line of credit	Long term liability

Account 1050 (trust bank) and account 2400 (client trust liability) should always be equal. Each client gets a sub-ledger under 2400 so the sum of all client balances matches the trust bank balance.

3000 to 3999: Equity

Number	Account name	Type
3000	Partner capital, Partner A	Equity
3010	Partner draws, Partner A	Equity
3100	Partner capital, Partner B	Equity
3110	Partner draws, Partner B	Equity
3900	Retained earnings	Equity

Give each partner their own capital and draw pair, so the capital account is easy to maintain and the year-end true-up is clean.

4000 to 4999: Revenue

Number	Account name	Type
4000	Legal fees, litigation	Income
4010	Legal fees, corporate and business	Income
4020	Legal fees, real estate	Income
4030	Legal fees, family law	Income
4040	Legal fees, estate planning	Income
4050	Legal fees, other practice areas	Income
4100	Consultation fees	Income
4200	Reimbursed client costs	Income

5000 to 5999: Direct costs

Number	Account name	Type
5000	Contract attorney fees	Cost of goods sold
5100	Expert and consultant costs	Cost of goods sold
5200	Court filing fees, firm paid	Cost of goods sold
5300	Process server and service costs	Cost of goods sold

6000 to 6999: Operating expenses

Number	Account name	Type
6000	Attorney compensation	Expense
6010	Paralegal and staff wages	Expense
6030	Payroll taxes and benefits	Expense
6100	Rent and office lease	Expense
6110	Utilities, phone, and internet	Expense
6200	Practice management and legal research software	Expense
6210	Accounting and payroll software	Expense
6300	Professional liability (malpractice) insurance	Expense
6310	General business insurance	Expense
6400	Office supplies, printing, and postage	Expense
6500	Marketing and business development	Expense
6600	Bar dues and continuing legal education	Expense
6700	Travel and meals	Expense
6800	Bank and merchant processing fees	Expense
6900	Depreciation expense	Expense
6950	Miscellaneous expense	Expense

What makes this a law firm chart, not a generic one

A standard small-business chart of accounts will not keep a firm compliant. The parts that matter for a law firm are the ones a general template skips.

The trust structure. A trust bank account (1050) and a matching client trust liability (2400) that stay equal, with a sub-ledger for every client. Money in trust is never revenue when deposited.
Partner capital accounts. A capital and draw pair per partner (3000 series) so equity is easy to maintain and true up.
Revenue by practice area. Splitting fees (4000 series) so you can see profitability by practice, not just one lump of income.
Unbilled fees and advanced client costs. Accounts for work in progress (1110) and recoverable client costs (1150) that a cash-only template ignores.

A note on your state's trust rules

The trust section above is the standard structure, but a few states have specific requirements, for example a separate account for a client whose funds are large enough to earn meaningful interest, or particular naming conventions for the IOLTA account. Treat account 1050 and 2400 as the starting point and confirm the details against your state bar's trust rules.

How Numetix uses it

Numetix sets up this chart of accounts for a firm and keeps it clean. The trust structure mapped correctly in QuickBooks Online, per-client sub-ledgers maintained, practice-area revenue tracked, and partner capital accounts kept current.

Numetix is a legal-specific service for small law firms of 3 to 20 attorneys. A correct chart of accounts is the foundation, and the monthly close and three-way trust reconciliation are built on top of it, with the books closed by the 15th.

Frequently asked questions

How is a law firm chart of accounts different from a normal one?

It separates client trust money from firm money with a trust bank account, a matching client trust liability, and per-client sub-ledgers, none of which appear in a standard chart. It also tracks unbilled fees, reimbursed client costs, and partner capital accounts.

Where should trust accounts sit?

The trust bank account is an asset, and the client trust liability is a liability that mirrors it. The two should always be equal, and each client has a sub-ledger. Trust money is never recorded as revenue on deposit.

Can I use this in QuickBooks Online?

Yes. The numbers, names, and types map to QuickBooks Online account types, so you can enter or import them. Map the trust bank account and client trust liability carefully so they stay in balance.

Want this chart of accounts set up correctly in your books?Trust structure mapped, per-client sub-ledgers, practice-area revenue, partner capital kept current, closed by the 15th.

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Law firm chart of accounts template

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