Law Firm Bookkeeping in Houston
Houston’s legal market reflects the city’s economy: energy and maritime work, a heavy personal injury docket, one of the country’s busiest bankruptcy courts, and a large immigration practice. Firms here range from downtown litigation boutiques to neighborhood practices across Harris and Fort Bend counties. A&W Associates provides remote bookkeeping and trust accounting for Houston law firms, matched to Texas rules and to the kind of work Houston firms actually do.
Texas Trust Account Requirements
Texas Disciplinary Rule 1.14 requires client and third-party funds to be held in an account designated as a trust or escrow account, separate from the firm’s own money, and complete records of that account to be kept for five years after the representation ends. Interest on pooled IOLTA accounts goes to the Texas Access to Justice Foundation to support civil legal aid. We maintain client-level ledgers and reconcile Houston trust accounts every month, whether or not a specific schedule is required.
Hospital Liens on Personal Injury Settlements
With the Texas Medical Center and several large hospital systems in the area, hospital liens are a routine part of Houston personal injury settlements. Chapter 55 of the Texas Property Code allows hospitals to assert liens against a patient’s recovery. We log each lien notice against the client’s matter, hold the claimed amount on the trust ledger until the attorney resolves it, and record the final payoff. See our personal injury bookkeeping page for more.
Bankruptcy and Restructuring Work
The Southern District of Texas in Houston has become one of the busiest venues in the country for large Chapter 11 cases. Professionals in those cases are paid through interim and final fee applications, and consumer practices collect Chapter 13 fees through the trustee. We track time, expenses, approved amounts, and payments for each case. Learn more on our bankruptcy law firm bookkeeping page.
Court-Appointed Criminal Defense in Harris County
Texas counties pay appointed counsel under locally adopted fee schedules, so a Houston defense firm may carry receivables from Harris County alongside private flat-fee clients. We track appointed-case billing separately, so partners can see what the county owes and when it is paid.
No State Income Tax, But Other Obligations
Texas has no personal income tax, so Houston firms do not withhold state income tax from paychecks. Most law firm entities are still subject to the Texas franchise tax and its annual report, generally due May 15, and employers pay state unemployment tax through the Texas Workforce Commission. We keep payroll and year-end records ready for your CPA.
Practice Areas We Support in Houston
- Personal injury and workers’ compensation practices
- Bankruptcy and restructuring firms
- Immigration practices appearing in Houston’s immigration courts
- Criminal defense firms with appointed and private caseloads
- Business and energy transactional practices
How We Work With Houston Firms
We work with Houston firms remotely from our Florida office, one hour ahead of Central time, using cloud-based accounting and your existing practice management software. Contact us to talk about your firm, or see our law firm bookkeeping services by practice area.
This page is provided for general informational purposes and does not constitute legal or tax advice. Attorneys should review the trust accounting rules applicable to their jurisdiction and consult appropriate legal counsel or a CPA when necessary.
