Law Firm Month End Close Checklist: 6 Proofs to Finish

A law firm month end close checklist works best as 6 proofs, not a list of chores: every bank and card account ties to its statement, trust passes the 3 way check, no client ledger sits below zero, every open item has an owner, the period is locked, and the firm gets a short summary. When all 6 are true, the month is closed. I finish that in 3 to 5 days.

What is a month end close for a law firm?

A month end close is the set of checks that proves a month's books are correct and then stops anyone from changing them. For a law firm it covers the operating account, any cards, and the client trust account.

Most firms think the month is closed when the bank reconciles. That is 1 check. I treat the close as 6 separate proofs, and I check each one off on its own.

If trust is new to you, start with my guide to law firm trust accounting.

What are the 6 proofs in a law firm month end close?

#	Proof	What "done" looks like
1	Every bank and card account ties to its statement	Each reconciliation ends at the statement balance, to the cent
2	Trust passes the 3 way check	Bank statement, trust account in the books, and the total of all client ledgers agree
3	No client ledger sits below zero	Every client balance is zero or higher
4	Every open item has an owner	Each unresolved item is written down with a name next to it
5	The period is locked	Nobody can post into the closed month by accident
6	The firm gets a short summary	A few lines on what changed and what is still open

Proof 1: Every bank and card account ties to its statement

Reconcile the operating account and every card to the statement, to the cent. Before you finish, check that the cleared payment and deposit counts and totals equal the statement. A 0.00 difference alone is not enough, because 2 errors can cancel each other.

If 1 card statement covers a parent card and its sub cards, see my guide to reconciling a credit card with sub accounts in QuickBooks Online.

Proof 2: Trust passes the 3 way check

The 3 way check compares the bank statement balance (adjusted for outstanding checks and deposits in transit), the trust account balance in your books, and the total of every client ledger. All 3 must agree. The ABA's comment on trust account records describes this same comparison without using the phrase. The full method is in my guide to the three way reconciliation.

Proof 3: No client ledger sits below zero

A negative client ledger means 1 client's money covered another client's cost. The bank and book balances can still match while this happens, which is why it gets its own proof. I explain and fix any negative ledger in the same month. For why this is a serious problem, read commingling client funds.

Proof 4: Every open item has an owner

An open item is anything still unresolved at the end of the month. Write each one down with an owner. Do not leave an item in someone's head.

Proof 5: The period is locked

Once the proofs hold, lock the period in your accounting software. This stops a late entry from landing in a month you already reconciled and reported.

Proof 6: The firm gets a short summary

Send the firm a few lines: what changed this month and what is still open.

How long should a law firm month end close take?

My close takes 3 to 5 days. The work did not get smaller. The order changed.

Most closes stall for 2 reasons. Everything waits on the bank rec, and then everything waits on questions nobody asked early.

How to close a law firm's month in 3 to 5 days

Start close prep 3 days before month end.
Send client questions as soon as they come up. Do not hold them until after the bank rec. Each question should carry what, when, how much, for whom, and where you already looked, so the firm can answer in 1 reply.
Reconcile every bank and card account. Tie each one to its statement and check cleared counts and totals, not just the difference.
Run the trust 3 way check. Bank, books, and client ledgers must agree before you move on.
Check every client ledger for a negative balance. Fix or explain each one in the same month.
Write down every open item with an owner.
Review everything a second time. Every close gets a second review pass before it reaches the firm.
Lock the period and send the summary. The close is finished when both are done.

How should client questions be written during a close?

Client questions go out as soon as they come up. Make each one complete, so the firm can answer in 1 reply.

Put each item on its own row in a table, so the firm can answer everything in 1 reply. Every row carries 5 pieces of detail, and none of them should be left for the firm to ask about:

Detail	Example of what to include
What	Payee and the check or reference number
When	The exact date
How much	The exact amount
For whom	The client, job, or matter
From where	The account, and what you already checked

Why does trust get its own proofs?

Trust holds client money, so the books must prove all of it is accounted for. The ABA's model rules on client trust account records list monthly trial balances and quarterly reconciliations of client trust accounts among the records a lawyer keeps. The ABA page brackets those timings because each state chooses its own.

The ABA comment calls quarterly the minimum and monthly the better practice, because an error spread across 3 months of activity is hard to find. A monthly close puts the trust check on the same schedule as everything else. See how often to reconcile a trust account.

FAQ

What is on a month end close checklist for a law firm?

6 proofs: bank and card accounts tie to their statements, trust passes the 3 way check, no client ledger is below zero, every open item has an owner, the period is locked, and the firm gets a short summary.

How long should a law firm's month end close take?

Mine takes 3 to 5 days, with close prep starting 3 days before month end. The speed comes from the order of the work and from sending client questions early.

Why does a law firm need a trust check in the close?

Trust holds client money, so the books must prove it is all accounted for. Bank and books can match while 1 client ledger is negative, so the close checks the 3 way agreement and the client ledgers separately.

When is a month actually closed?

When all 6 proofs are true, ending with the locked period and the summary to the firm. In short: a close is a set of proofs, not a date on the calendar.

Do I need a second review of the close?

Yes. Every close I do gets a second review pass before it reaches the firm.

Trust account rules vary by state. This guide explains common practice under the ABA Model Rules. Check your state bar's rules, and treat this as general information, not legal advice.

Law Firm Month End Close Checklist: 6 Proofs Before the Month Is Closed