What Sets Us Apart
Familiar with Clio, Smokeball, Filevine and LeanLaw Platforms
Audit-Ready Financials for Law Firms
Dedicated Accounting Support
QuickBooks Expertise for Law Firms
Frequently Asked Questions
What is IOLTA, and does my Colorado Law Firm need one?
IOLTA (Interest on Lawyers Trust Accounts) is the trust account structure used for client funds that are too small in amount or held for too short a period to earn interest for the individual client. In Colorado, these accounts are administered through COLTAF, the Colorado Lawyer Trust Account Foundation. If your firm holds client funds such as retainers, settlement proceeds, or advanced costs, those funds must be held in an appropriate trust account in accordance with Colorado's trust-account rules. Colorado attorneys must also certify compliance with Rule 1.15 as part of their annual attorney registration.
How often does my Trust Account need to be reconciled in Colorado?
Colorado requires Trust Account reconciliation at least quarterly, though monthly reconciliation is the practical standard most firms use to catch issues early. A proper three-way reconciliation compares your bank statement, your trust ledger, and your individual client ledgers. All three must agree, and any discrepancies should be identified and resolved.
What happens if my IOLTA Bank Account overdrafts?
An overdraft on a Colorado IOLTA bank account triggers an automatic notification to the Office of Attorney Regulation Counsel — it isn't simply a private matter between you and your bank. That's one reason accurate, current trust accounting is so important: errors or shortages in a trust account can create regulatory and compliance issues for the firm.
Can I use QuickBooks for Law Firm Trust Accounting?
Yes, with the right setup. QuickBooks can be used for Law Firm Trust Accounting, but it must be configured properly to support IOLTA requirements — including separate client/matter ledgers, clear separation of trust and operating funds, and a reconciliation process built around Colorado's three-way reconciliation requirement. Many firms use QuickBooks alongside legal practice management software such as Clio, Filevine, Smokeball, or LeanLaw for client and matter-level detail.
How long do I need to keep Colorado trust account records?
Colorado requires trust account records — individual client ledgers, transaction journals, bank statements, cancelled checks, and records of deposits and disbursements — to be retained for 7 years.