Free with Pro and above — no legal surcharge
⚖️

Client Money Stays Client Money

Kantivo's Law Firms edition gives solo attorneys and small practices a per-client IOLTA ledger that physically refuses overdrafts and commingling — plus matters, recorded conflict searches, automatic withdrawal notices, and the three-way rec your bar examiner wants to see. All inside your regular accounting, at one annual price.

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Why Generic Accounting Fails Law Firms

Your accounting software has no idea trust rules exist

Generic bookkeeping tools treat the IOLTA account like any other bank account. Nothing stops a payment from Client A's funds landing on Client B's bill, nothing flags a client balance going negative, and yesterday's trust entry can be quietly rewritten today. Each of those is a bar complaint — and the usual fix is a second subscription to a legal practice suite at $40–$200 per seat per month.

One slip is all it takes

Trust account violations sit at the top of attorney discipline statistics year after year. The rules themselves are simple; what fails is enforcement-by-spreadsheet on a busy Friday. Software that merely records trust activity doesn't protect you. Software has to refuse the bad transaction.

How Kantivo Handles It

The retainer lifecycle, guarded end to end

1

Deposit

Retainer goes into the flagged IOLTA account; that client's ledger begins.

2

Earn & Bill

Time accrues on the matter; one click turns WIP into a draft invoice.

3

Transfer

Earned fees move to operating, the invoice gets paid, the client gets notified — atomically.

Refused, not warned

Try to draw $5,001 from a client holding $5,000 and the transfer is rejected — even if the IOLTA account holds $80,000 of other clients' money. Try to point a trust drawdown at another client's invoice and the option simply doesn't exist. Try to edit a posted trust entry and you'll find there's no edit button — only a void, which requires a reason and leaves the original on display. The rules live in the ledger, not in a training manual.

Inside the Edition

🏛️ The Per-Client Trust Ledger

Flag your IOLTA bank account and Kantivo builds the matching "Funds Held in Trust" liability automatically. Every dollar in the account is attributed to a specific client — deposits, transfers, disbursements, refunds — with running balances and a permanent record of who posted what.

  • Hold balances per client, per matter, or a mix of both
  • Write-once entries; corrections are visible voids with reasons
  • Balance sheet always shows trust money as a liability, never firm assets
  • Full ledger statement per client via the Trust Ledger by Client report

🧮 Three-Way Rec, Computed for You

Enter the bank statement figures; Kantivo derives the book balance and the client-ledger total itself and declares the verdict live. No self-certifying, no spreadsheet — and no saving an out-of-balance rec without writing down why.

  • BALANCED / OUT OF BALANCE shown as you type
  • Permanent run history with reconciler name and timestamp
  • Recorded partner sign-off per reconciliation
  • Mandatory variance explanation on any imbalance

🔍 Conflict Searches That Leave Evidence

The new-matter flow starts with a search across your clients, their related parties, all matter names, and every opposing party and counsel you've ever logged. The search, its hits, and your clearance call are stored permanently — that record is your documented COI procedure.

  • Clearance decision and notes captured at the moment of the call
  • Related parties (spouses, entities, co-defendants) tracked per client
  • Uncleared matters wear a visible warning flag

📂 Matters, Properly Modeled

Each case carries its number (auto-issued per year, or your own format), billing method, attorneys, opposing party, full status history, and a statute-of-limitations date feeding deadline alerts.

  • Hourly, flat-fee, contingency, hybrid, and pro bono methods
  • Deadline watchlist at 30/60/90 days before the SOL
  • Can't withdraw a matter that still holds client funds
  • Time, WIP, invoices, costs, and trust activity on one screen

⏱️ Rates, Time, and One-Click Billing

Effective-dated rate tables per timekeeper mean January's rate increase never rewrites December's entries. Time logged on a matter prices itself, and the Bill WIP button converts everything unbilled into a reviewable draft invoice — one line per time entry, defensible to the client line by line.

  • Matter-level rate overrides beat the default table
  • Unbilled costs join the same draft automatically
  • WIP aging report: 0–30 / 31–60 / 61–90 / 90+ days

📨 Withdrawal Notices, Never Forgotten

Bars including New York, California, and Texas require the client be told whenever trust funds move to your operating account. Kantivo makes the notice a by-product of the transfer itself — the PDF is generated in the same action, so skipping it isn't possible.

  • Client, matter, amount, date, and the invoice paid — all on the notice
  • How it was sent (email, mail, portal, in person) recorded with the entry
  • Regenerate from the ledger any time

One System Instead of Two

If your firm needs case management, the dedicated legal suites earn their keep. But many small practices buy them for exactly one reason: trust accounting their bookkeeping software can't do. Kantivo removes that reason. The trust ledger, the conflict log, and the rec live in the same double-entry books as your rent, payroll, and operating revenue — one login, one data store, one price.

And Everything Else Kantivo Does

Underneath the legal layer is the full Kantivo platform: bank feeds with reconciliation, AI-assisted categorization, invoicing with card payments, 1099 handling for experts and court reporters, custom reporting, audit logs, and multi-company support. The Law Firms edition is a vertical workflow on top of real accounting software — not a bolted-on module.

Common Questions

Do I install something extra?

No. It's a license feature inside the standard Kantivo app, included from the Pro tier up. When your license covers it, ⚖️ Law Firm appears in the sidebar by itself — same installer, same database.

How is commingling actually prevented?

Structurally. A trust-to-operating transfer is anchored to an invoice, and the invoice picker only offers invoices belonging to the client whose funds are being drawn. There's no field where you could enter a different client — the bad transaction can't be expressed, let alone posted.

And overdrafts?

Each outflow — drawdown, disbursement, or refund — is checked against that specific client's ledger balance under a lock, so even two simultaneous transfers can't sneak past. If the amount exceeds the client's balance, the server rejects it with an explanation. The total bank balance is irrelevant; only the client's own money counts.

What does a trust drawdown post to the books?

A single atomic operation: the Funds Held in Trust liability is debited, the IOLTA bank credited, your operating bank debited, Accounts Receivable credited, the payment applied to the invoice, and the client's ledger entry written. If any part can't complete, none of it posts.

Can balances be tracked per case instead of per client?

Yes — both levels are supported. Deposits without a matter pool at the client level; deposits tagged to a matter are segregated per case, and outflows respect the per-matter balance. Use whichever your engagement letters call for, including a mix.

We have offices in two states. Does that work?

Flag two trust accounts, one per state bar, each with its own state code. Ledgers and reconciliations remain entirely separate, and you flip between them with the account selector.

What about settlements on contingency cases?

Built in. The settlement worksheet runs the waterfall — gross recovery, costs off the top, fee percentage on the rest, client net — with live recalculation and every number adjustable to the negotiated outcome. Distributing posts a single guarded journal (fee to income, costs recovered, firm share to operating, client paid from trust), refuses to run before the settlement is deposited or to run twice, and produces a settlement statement PDF with signature lines.

Can I bill clients for costs the firm advanced?

Yes — tag any vendor bill to a matter as a hard cost (passes at cost) or a soft cost (firm-default markup, set once in Firm Settings). The Bill WIP flow puts unbilled costs on the draft invoice next to the unbilled time, and costs a settlement already reimbursed are blocked from billing automatically.

Will this confuse my CPA?

The opposite. Under the legal features it's ordinary double-entry bookkeeping: a bank asset offset by a liability, with standard journal entries. Your CPA sees a normal General Ledger and Balance Sheet — just ones where the trust mechanics were enforced all year.

How much extra does the legal edition cost?

Zero. It's bundled with Pro and higher. Compare that with adding a legal practice suite on top of your accounting subscription, and the math is the pitch.

Run a Compliant Trust Account From Day One

30-day free trial. Full Law Firms edition included.

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