Bookkeeping and Accounting for Workers’ Compensation Law Firms

Workers’ compensation attorneys typically work on contingency, with fees that are often set or approved by statute or by a judge. Settlements may involve structured payments, Medicare set-aside arrangements, and medical provider claims. A&W Associates provides bookkeeping for workers’ compensation firms that keeps fee approvals, settlement funds, and case costs properly documented.

Statutory and Approved Attorney Fees

Because attorney fees in workers’ compensation matters are often regulated, the amount you can take must match what was approved. We record approved fees against each settlement, keep the approval documentation with the client’s records, and make sure transfers from trust to operating match the approved amount.

Settlement Proceeds and Disbursements

We track settlement deposits and disbursements by client, including payments to medical providers and other claimants, and prepare clear records that support each distribution.

Case Cost Tracking

Medical records, independent medical exams, depositions, and expert reports are often advanced by the firm. We track costs by matter so you know what has been invested in each claim and what is reimbursable.

Trust Account Reconciliation

Our monthly three-way reconciliation of your IOLTA and trust accounts keeps bank balances, trust ledgers, and client ledgers in agreement.

Cash Flow Planning for High-Volume Practices

Workers’ compensation firms often carry a large caseload with smaller individual fees. We provide monthly financial statements and cash flow reporting that help you plan staffing and growth.

What We Handle for Workers’ Compensation Firms

Approved fee recording and documentation
Settlement deposit and disbursement tracking
Case cost advances by matter
IOLTA and trust account reconciliation
Accounts payable and receivable
Payroll coordination
Monthly financial reports and tax-ready books

Why Workers’ Compensation Attorneys Choose A&W Associates

Our team has over 25 years of financial experience and specialized training in legal bookkeeping. Contact us today to see how we can support your practice.

Who Approves the Fee: Workers’ Compensation Rules by State

Every workers’ compensation system controls attorney fees, but each state does it differently. Knowing who approves the fee and what limits apply tells us exactly what documentation has to sit behind each transfer from trust. We work with workers’ compensation firms in these states remotely.

Texas: Houston, Dallas, Fort Worth, and El Paso

Under Texas Labor Code §408.221, a claimant’s attorney fee must be approved by the Division of Workers’ Compensation or a court, and it generally may not exceed 25 percent of the claimant’s recovery. We keep each approval with the client’s records and record only the approved amount as earned.

Illinois: Chicago, Rockford, Peoria, and Springfield

The Illinois Workers’ Compensation Act generally limits fees to 20 percent of compensation recovered, unless the Commission allows more after a hearing. The fee contract must be on Commission forms and filed for approval. Illinois firms often carry a large volume of open claims, so we track fee contracts, approvals, and payments matter by matter.

Florida: Miami, Tampa, Orlando, and Jacksonville

Florida Statutes §440.34 requires that claimant attorney fees be approved by a judge of compensation claims or the court, and ties fees to a percentage schedule based on benefits secured. Fee awards in Florida have been heavily litigated, so we treat the approved order as the controlling document for every fee entry.

New York: New York City, Long Island, Buffalo, and Albany

In New York, claimant attorney fees in compensation cases must be approved by the Workers’ Compensation Board. Board-approved fees can arrive separately from settlement funds, so we reconcile fee receipts against each Board decision and keep them out of the client’s trust balance.

Workers’ Compensation Law Firm Bookkeeping Near You

A&W Associates supports workers’ compensation firms throughout Florida, Georgia, Alabama, and New Mexico, and works remotely with firms in California, Texas, Illinois, and New York, including Los Angeles, San Francisco, Houston, Dallas, and New York City. See our service area for the cities where we work with law firms, or contact us to ask about your location.

About A&W Associates

A&W Associates was founded by Angela Weicht, who brings over 25 years of financial and accounting experience, beginning in banking as a risk control specialist and fraud control analyst and continuing as an office manager and accounting manager for private businesses. The firm holds Certified Public Bookkeeper and QuickBooks ProAdvisor credentials and specializes in bookkeeping for law firms and nonprofits.