Law Firm Bookkeeping & HR in San Diego
Clean operating books, organized trust records for your attorneys to review, and clear partner reporting, so the firm runs as well as it practices.
Law firm finances run on two tracks that must never mix. The operating account holds the firm's own money: fees earned, payroll, rent and overhead. The client trust account holds money that belongs to clients, and the State Bar expects every dollar of it to be accounted for client by client. On top of that, firms advance case costs that may not come back for months, and contingency practices can go long stretches between large settlements. Good bookkeeping keeps both tracks clear and the cash plan realistic.
Skyward provides bookkeeping, reporting and HR support for law firms across San Diego County, from our office in Escondido. We are not a law firm and do not give legal or ethics advice. We keep the firm's operating books in QuickBooks Online, reconcile them to your practice management system each month, and prepare trust account reconciliation workpapers for the responsible attorney to review and approve. Documents move through a secure Karbon client portal, and the monthly close follows the same steady schedule every month.
A firm's people are its main cost and its main asset. Our HR team supports onboarding for attorneys, paralegals and staff, keeps personnel files and policies in order, and helps with payroll compliance, leave tracking and compliant terminations under California rules. We also help partners see compensation and distributions clearly. Engagements run on a fixed monthly fee, which gives managing partners a predictable cost for finance and HR administration instead of another salaried position. Onboarding typically takes about a week, and the same team stays with your firm.
Services we typically run
- Bookkeeping
- Internal Controls
- Forecasting & Budgeting
- Financial Reporting & Dashboards
- Outsourced HR
What we handle
The realitiesof your sector.
01
Three-way trust reconciliation support
Trust accounting depends on three records agreeing: the trust bank statement, the trust account ledger and the individual client ledgers. We prepare that three-way reconciliation each month, flag any differences, negative client balances or stale funds, and deliver it for the responsible attorney to review and sign off. The attorney remains responsible for the trust account under State Bar rules. We never hold, move or disburse client funds.
02
Case cost advances that sit for months
Filing fees, expert witnesses, depositions and medical records add up quickly, and the firm usually carries them until a case resolves. We track advanced costs by matter, reconcile them to your practice management system, and report the total outstanding so partners can see how much capital is tied up in open cases. Your CPA advises on how those advances are treated for tax purposes.
03
Cash planning around contingency fees
A contingency practice can have a strong year on paper and still face a tight quarter, because fees arrive when cases settle, not on a schedule. We build a cash forecast that separates fixed overhead from expected settlements, weighted by your own assessment of timing. That gives partners a realistic view of runway and helps decide when to use a line of credit or hold back distributions.
04
Partner draws, distributions and compensation reporting
Partners want to know what the firm earned, what each person has taken and how that compares to the compensation arrangement. We track draws and distributions by partner, report origination or matter-level revenue where your system provides it, and prepare year-end schedules for your CPA. Your partnership or operating agreement governs the split; we make the numbers behind it clear.
05
Keeping operating and trust activity separate
Earned fees need to move from trust to operating promptly and with documentation, and firm expenses must never be paid from trust. We review transfers each month, match them to invoices and fee approvals, and flag anything that needs an attorney's attention. Clean separation in the books makes the trust records easier to review and gives the firm a defensible trail if questions ever arise.
FAQ
Questions,answered plainly.
Can an outsourced bookkeeper manage our IOLTA account?
We can support it, but not manage it on your behalf. We prepare monthly three-way reconciliations and supporting reports for a responsible attorney to review and approve. We do not hold signing authority, move client funds or advise on trust accounting rules. Under State Bar rules, the attorney remains responsible for the trust account.
Does Skyward give legal or State Bar compliance advice?
No. Skyward is not a law firm and is not a CPA firm. We keep organized, reconciled records and flag items that look unusual. Questions about professional responsibility or trust rules belong with your firm's attorneys or ethics counsel, and tax questions with your CPA, and we coordinate with both.
How should a law firm track advanced client costs?
Most firms track advanced costs by matter so they can be recovered from settlements or billed to clients. We record and reconcile those costs to your practice management system and report balances by case. The correct accounting and tax treatment depends on your fee agreements, so we confirm it with your CPA.
Can you help a small firm with HR for attorneys and staff?
Yes. Our outsourced HR service covers onboarding, offer letters, handbooks, leave tracking, payroll compliance and terminations under California employment rules. For firms without an office manager handling HR, it provides structure without adding a full-time hire. Employment law questions beyond policy administration go to your own counsel.
How much does law firm bookkeeping with Skyward cost?
We quote a fixed monthly fee based on the firm's transaction volume, number of trust accounts and whether HR support is included. There is a six-month initial commitment, and the engagement runs month-to-month after that. Contact us for a quote based on your firm's size and practice areas.
Services
Built forlegal services.
- Finance
Bookkeeping
Up-to-date, reconciled, tax-ready books every month. We clean up what is there, set up processes and automations, and deliver accurate monthly statements for a fixed fee.
- Finance
Internal Controls
Segregation of duties for small teams, approval workflows, reconciliation discipline, documented close procedures and fraud-risk reduction that keep your books audit-ready.
- Strategy
Forecasting & Budgeting
Annual budgets, rolling forecasts, scenario planning and financial projections for launches and fundraising, built in models your team can understand and use.
- Finance
Financial Reporting & Dashboards
Monthly statements, budget versus actual by department, AR and AP aging, weekly cash reporting and KPI dashboards in Power BI, Excel or Google Sheets.
- People
Outsourced HR
Comprehensive oversight of HR practices, policies and procedures: onboarding, compliant terminations, contractor classification under AB5, payroll support and audit-ready records.
Ready to take yourbusiness Skyward?
Tell us where your finance and HR operations stand today. We'll map out what fixed-fee support would look like — usually live within about a week.