IOLTA Trust Accounting
Accounting & Bookkeeping Glossary
Definition
IOLTA (Interest on Lawyers' Trust Accounts) is a special bank account where attorneys hold client funds separately from their operating money. State bar rules are strict: you cannot commingle trust funds with firm money, and you must reconcile IOLTA accounts monthly. Getting this wrong can result in disbarment. It's one of the most compliance-critical areas of law firm bookkeeping.
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