Can you handle bookkeeping for a law firm's trust account?
Yes. VJD can maintain your trust account books and perform the monthly three-way reconciliation that New Jersey Rule 1:21-6 requires.
The three-way reconciliation compares three figures that must match: your book balance showing what your records say is in the trust account, the bank balance showing what the bank says is there after accounting for outstanding items, and the total of all individual client ledger balances showing what you owe to each client. When all three numbers agree, your trust account is in balance. When they don’t, something needs to be found and fixed before it becomes a bigger problem.
VJD handles the detailed work. That means recording deposits and disbursements, maintaining individual client ledgers, reconciling the bank statement monthly, and producing the three-way reconciliation report. You get documentation showing the account is in balance and a clear trail of every transaction by client matter.
What VJD cannot do is replace your oversight. New Jersey makes the attorney’s duty to supervise trust funds non-delegable. You can outsource the bookkeeping, but you cannot outsource the responsibility. In practice, this means you review the reconciliation reports VJD produces, confirm they make sense, and sign off. The work gets done accurately and on time, but you remain the one accountable to the bar.
This arrangement works well for law firms that don’t have the time or staff to keep up with trust accounting internally. The reconciliation has to happen monthly regardless of how busy the practice gets. Falling behind creates compliance risk and makes errors harder to trace. Having someone else handle the bookkeeping means it actually gets done every month.
Trust account mistakes can lead to bar complaints even when the underlying issue is just poor recordkeeping rather than intentional misuse. Keeping the books accurate protects you from problems that arise when funds are misallocated between client matters or when the account balance doesn’t match what it should be. Fractional CFO and advisory services for small businesses often include this kind of specialized bookkeeping for professional practices where compliance requirements go beyond standard accounting.
If you’re currently doing your own trust accounting or not doing it consistently, getting the reconciliation handled externally takes a recurring task off your plate while keeping you compliant with Rule 1:21-6.
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