Managing client trust accounts is one of the most sensitive and regulated responsibilities within a law firm. IOLTA (Interest on Lawyers’ Trust Accounts) accounts are designed to hold client funds separately from the firm’s operating funds. Because these accounts are governed by strict bar association rules, even small bookkeeping mistakes can lead to serious penalties. This is why hiring a professional IOLTA bookkeeper is essential for law firms of all sizes. What Is an IOLTA Account? An IOLTA account is a special trust account where attorneys deposit client funds that are short-term or nominal in amount. The interest earned is typically directed to state programs that fund legal aid and public service initiatives. While the concept is straightforward, the compliance requirements are detailed and strict. Law firms must ensure: Client funds are never mixed with operating funds Accurate records are maintained for every transaction Individual client balances are tracked at all time