Bookkeeping and Accounting Support for Law Firms in Ontario
Trust accounting that meets LSO By-Law 9, monthly three-way reconciliation completed within 25 days, client trust ledgers, shortage detection, payroll, HST, and T2 corporate tax — all handled by specialists who understand legal practice.
Last updated: March 2026
LSO By-Law 9 trust accounting is a condition of your licence — not optional. We ensure full compliance, every month.
Trust Accounting Built for Ontario Law Firms
Legal trust accounting in Ontario is governed by the Law Society of Ontario's By-Law 9. It requires strict separation of client funds, monthly three-way reconciliations, and individual client ledgers — rules that most general bookkeepers are not trained to follow.
Taxxel provides dedicated trust accounting and bookkeeping for solo practitioners, small law firms, and licensed paralegals — ensuring full LSO compliance every month, with zero guesswork.
LSO By-Law 9 Compliance — Every Month
Why Law Firms Need Specialists
General Bookkeepers Are Not Enough
Legal trust accounting is governed by the Law Society of Ontario. The rules are strict, the deadlines are firm, and the consequences of errors are career-ending.
LSO By-Law 9 Compliance
Mishandling trust funds is a breach of By-Law 9 and can result in suspension or disbarment. Most bookkeepers are not trained in legal trust accounting requirements.
Three-Way Reconciliation
Monthly reconciliation of your bank statement, trust journal, and individual client ledgers is mandatory — and routinely missed by general bookkeepers.
Mixed General & Trust Accounts
Law firms run general operating accounts alongside trust accounts. Commingling funds — even accidentally — creates serious regulatory exposure.
Time-Sensitive Reconciliation Deadlines
LSO requires reconciliation within 25 days of month-end. Delays trigger compliance violations even if the numbers are correct.
Our Services
What Taxxel Handles for Your Firm
LSO By-Law 9 Trust Compliance
We ensure every transaction, balance, and record meets the Law Society of Ontario's trust accounting requirements.
Three-Way Monthly Reconciliation
Full reconciliation of bank statement, trust journal, and each client's individual trust ledger — every month, within the 25-day window.
Client-Specific Trust Ledgers
A separate ledger maintained for every client with trust funds, tracking deposits, disbursements, and running balances.
Monthly Trust Listing
We prepare a complete trust listing showing all client balances at month-end, which must reconcile to your bank balance.
Trust Shortage Detection
Immediate flagging if any client's trust ledger shows a shortage — protecting you from regulatory violations before they escalate.
General Bookkeeping
Full management of your operating accounts — payables, receivables, bank reconciliation, and monthly financial statements.
Payroll Processing
Payroll for partners, associates, and support staff — including remittances, T4s, and Records of Employment.
HST Filing
Quarterly or annual HST returns prepared and filed accurately — capturing all eligible ITC claims for your firm.
LSO Audit Preparation
We prepare all documentation required for a Law Society spot audit or full compliance audit — organized, complete, and on time.
T2 Corporate Tax
Corporate income tax returns for professional corporations, including T2s, T5s, and any required elections.
Complete Package
What's Included
- Monthly three-way trust reconciliation (completed within 25 days)
- Client-specific trust ledger maintenance
- Monthly trust listing prepared and reconciled
- Shortage detection and immediate flagging
- Operating account bookkeeping and reconciliation
- Accounts payable and receivable management
- Monthly financial statements (P&L, balance sheet)
- Payroll processing and CRA remittances
- T4 slips and T4 Summary preparation
- Quarterly or annual HST/GST filing
- T2 corporate tax return preparation
- LSO compliance audit preparation
- Document organization for spot audits
- Year-end working papers
Software
We Work in Your System
CosmoLex
Cloud-based legal practice management
PCLaw
Time, billing & trust accounting
QuickBooks
General bookkeeping & financial reporting
Clio
Legal practice management + accounting
Esilaw
Legal billing & trust accounting
Xero
Cloud accounting for professional corps
The 25-Day Rule
LSO requires three-way reconciliation to be completed within 25 days of month-end. We treat this as a hard deadline — not a guideline. Your reconciliation is never late.
Who We Serve
Built for Every Type of Legal Practice
Solo Practitioners
Handle all your bookkeeping, trust accounts, and compliance so you can focus on clients.
Small & Mid-Size Firms
Scalable support for growing firms with multiple partners, associates, and staff.
Boutique Specialty Firms
Litigation, real estate, family, immigration — we understand the billing patterns of each area.
Paralegals
LSO-compliant trust accounting for licensed paralegal practices with mixed client funds.
Pricing
Transparent, Fixed Monthly Pricing
No hourly rates. No surprise invoices. A flat monthly fee based on your firm's size and services required.
From $200/month
Solo practitioner — trust + general bookkeeping
FAQ
Frequently Asked Questions
Ready to Get Started?
Get in touch today — we are here to help with your tax and bookkeeping needs.
Contact Us