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Trust accounting under LSO By-Law 9, monthly trust reconciliations, HST on fees and disbursements, WIP and professional corporation tax, handled by a CPA-led accounting firm so your records are spot-audit ready.
24/7 receptionist, a real person answers.
- Every return is reviewed by a CPA
- No surprise bills
- Reply within one business day
- 24/7 receptionist: a real person answers
- QuickBooks Online, Xero and Dext
- Rated 5.0 stars from 29 Google reviews (read our reviews)
T-Ledgers is a CPA-led accounting firm working with Ontario sole practitioners, small law firms, real estate lawyers, family and litigation practices and paralegal firms. Wajahat Ajmal, CPA, FCCA, has been practising since 2020. We keep general and trust books, prepare monthly trust reconciliations, file HST and handle professional corporation and personal tax, and every return is reviewed by a CPA.
Law firm accounting and tax issues we handle
Rules, rates and thresholds change. We confirm the current figure for your situation on the call before relying on it.
Trust accounting under LSO By-Law 9
The Law Society of Ontario requires money received in trust for a client to go into a designated trust account, and requires specific trust records: trust receipts and disbursements journals, client trust ledgers, a record of transfers between client ledgers and a monthly trust comparison. See the LSO By-Law 9 summary. Money can only be withdrawn from trust for the purposes the By-Law allows, such as fees for services already billed.
Monthly trust reconciliations
The monthly comparison of trust bank balances to client ledger balances, with a reconciliation of each trust bank account, must be completed within 25 days after the month-end and signed by the lawyer. We prepare the three-way reconciliation from your practice-management exports so it’s ready to review and sign.
Cash limits and record retention
Lawyers generally can’t accept more than $7,500 in cash on one client file, with some exceptions. Most trust records must be kept for at least ten years and other financial records for six. Income tax law also makes trust records part of the books the CRA can review.
Law: Law Society of Ontario By-Law 9, ss.7, 18, 22(2) and 23 (trust accounts, records, monthly comparisons, retention); Income Tax Act s.230(2.1) (lawyers’ trust records); Income Tax Act s.230(1) and 230(4) (books and records, six years).
Lawyer Annual Report and spot audits
Trust account information is reported to the LSO each year in the Lawyer Annual Report. Clean monthly reconciliations make that section straightforward, and keep you ready for an LSO spot audit.
HST on fees and disbursements
Legal fees are taxable at 13% HST in Ontario. Disbursements paid as the client’s agent, such as some government filing fees, may not attract HST, while costs that are part of your service usually do. Money held in trust generally isn’t subject to HST until it’s applied to your account.
Law: Excise Tax Act s.165(1) and 165(2) (GST and HST imposed); Excise Tax Act s.123(1) (definitions).
Work in progress (WIP) and retainers
Lawyers used to be able to exclude unbilled WIP from income. That election was phased out for tax years beginning after March 21, 2017, with a five-year transition, and WIP is now generally included in income at year-end. Retainers held in trust aren’t your income until they’re applied to a bill. Year-end timing and billing practices matter.
Law: Income Tax Act s.9(1) (business income); Income Tax Act s.10(1) (inventory valuation); Income Tax Act s.12(1)(b) (amounts receivable); Income Tax Act s.34 (repealed WIP election).
Professional corporations
Ontario lawyers can practise through a professional corporation that holds an LSO certificate of authorization. We plan salary vs dividends and how retained earnings are invested, keeping TOSI and passive income rules in mind.
Law: Business Corporations Act (Ontario) s.3.1 (professional corporations); Income Tax Act s.125(1) (small business deduction); Income Tax Act s.120.4 (tax on split income); Income Tax Act s.125(5.1) (business limit reduction).
Mixed trust interest, LawPRO and fees
Interest on mixed trust accounts generally goes to the Law Foundation of Ontario, not the firm. LawPRO premiums and Law Society fees are generally deductible business expenses.
Law: Income Tax Act s.18(1)(a) (expenses to earn income); Law Society Act (Ontario) s.57 (interest on mixed trust accounts).
Partners, associates and staff
Partner draws aren’t salary, and partnership income is allocated by the partnership agreement. Associates and staff need payroll with source deductions. We set up the books so each partner’s capital and draws are clear.
Who we work with
- Sole practitioners
- Small and mid-sized law firms
- Real estate lawyers with high trust volumes
- Family, litigation and immigration practices
- Paralegal firms
- Lawyers practising through a professional corporation
Services for lawyers and law firms
- General and trust bookkeeping with monthly trust reconciliations, from $500/month (Scale); quarterly bookkeeping from $350/month (Growth). Bookkeeping Reviews of complex books start from $450 (see bookkeeping).
- Bookkeeping Review, $195/month or $295/quarter. For sole practitioners who keep their own general books.
- GST/HST returns, $150 per return.
- Catch-up bookkeeping, from $1,800 per year. For firms that need to rebuild before a spot audit or year-end (see catch-up bookkeeping).
- Corporate tax (T2), from $800, and personal tax (T1) from $110 (see corporate tax and personal tax).
- Payroll for staff and associates. Quoted after a free call (see payroll services).
- Virtual CFO, from $2,500/month. Realization, billing and partner-level reporting (see Virtual CFO).
Prices are + HST/GST. Anything without a listed price is quoted after a free call, and you get the price in writing before any work starts.
How we work with law firms
- Free call. We ask about your trust volumes, practice software, staff and how far behind you are.
- Written price. You get the scope and price in writing before any work starts.
- Setup. General books in QuickBooks Online or Xero, trust exports from your practice-management software and Dext for receipts.
- Monthly rhythm. Trust reconciliation ready to sign within 25 days of month-end, HST and payroll on time.
- Year-end. Financial statements, Lawyer Annual Report figures, T2 and T1, all reviewed by a CPA.
Why lawyers and law firms choose T-Ledgers
- We know By-Law 9. Monthly trust reconciliations are ready to sign within 25 days of month-end, so a spot audit is just another day.
- CPA-led, start to finish. T-Ledgers was founded by Wajahat Ajmal, CPA, FCCA. Every return is reviewed by a CPA before it's filed.
- No surprise bills. You get the scope and the price in writing before we start. If the work changes, we agree the new price with you first.
- Price matching, agreed up front. Have a comparable written quote? Bring it to us before you sign your proposal. We can only match a price when it's agreed before the proposal is signed.
- Fast, human answers. We reply within one business day, and our 24/7 receptionist means a real person answers when you call 866-254-5368.
- In person or online. Meet us in person, by appointment only, at our Etobicoke office (102-89 Skyway Ave, Etobicoke, ON M9W 6R4) or our Mississauga office (100 Matheson Blvd E #204, Mississauga, ON L4Z 3P8), or work with us entirely online.
- Your software, set up properly. We work in QuickBooks Online and Xero, and use Dext so receipts go in with a photo.
Meet your CPA
Wajahat Ajmal, CPA, FCCA, Founder, T-Ledgers Accounting. Verify my CPA Ontario membership.
I started my career as an audit associate at KPMG. Since then I’ve worked as an independent contractor for a tax filing company, preparing returns and handling client questions. I hold a BSc in Applied Accounting from Oxford Brookes University and an MSc in Professional Accountancy from University College London. I’m a Chartered Professional Accountant in Ontario and a Fellow of the ACCA. I started taking on my own clients in 2020 and founded T-Ledgers in 2023.
Every return the firm files is reviewed by a CPA. You can read more about the firm on our About page.
What our clients say
Read more on our client reviews page.
DIY vs a generalist firm vs T-Ledgers
← Swipe to compare →
| DIY | Generalist firm | T-Ledgers BEST VALUE | |
|---|---|---|---|
| Monthly trust reconciliations | Easy to fall behind | May not know By-Law 9 | ✓Ready to sign within 25 days of month-end |
| HST on fees and disbursements | Agent disbursements often mis-taxed | Varies | ✓Disbursements reviewed and coded correctly |
| WIP and retainers at year-end | Often missed | Varies | ✓Planned with your billing cycle |
| Who checks the return before it's filed | You do | Depends on the firm and who's assigned | ✓Every return is reviewed by a CPA |
| How you're billed | Software fees plus your own time | Often hourly; the final bill can vary | ✓Scope and price in writing up front. No surprise bills |
| Getting an answer | Search online or wait on CRA phone lines | Varies by firm | ✓Reply within one business day; 24/7 receptionist, a real person answers |
| Software | Whatever you set up yourself | May ask you to switch to their system | ✓QuickBooks Online, Xero and Dext |
| Meeting face to face | Not applicable | Varies | ✓In person by appointment in Etobicoke or Mississauga, or fully online |
| Price matching | Not applicable | Rare | ✓Available if agreed before you sign your proposal |
Frequently asked questions: Lawyers
Trust receipts and disbursements journals, client trust ledgers, a record of transfers between clients and a monthly trust comparison with supporting reconciliations, among others.
Within 25 days after the end of the month, signed by the lawyer who prepared or approved it.
Most trust records for at least ten years; other financial records for at least six.
Yes. We work from Clio, PCLaw and similar exports and give you a three-way reconciliation to review and sign.
Yes, generally 13% in Ontario.
It depends. Costs you pay as the client’s agent may not attract HST; costs that are part of your service usually do.
Generally not while it’s held in trust. HST applies when you bill and apply the funds.
Yes, if you’re registered and the costs relate to your taxable legal services.
Generally yes. The old WIP election has been phased out, so unbilled work is generally included in income at year-end.
No. Trust money belongs to clients until it’s properly applied to a delivered bill.
Generally the Law Foundation of Ontario, not the firm.
Generally yes, as business expenses.
Yes, with an LSO certificate of authorization. We set up the books and handle the T2.
Usually a mix. We plan it each year with RRSP room and CPP in mind.
A reasonable salary for real work is fine. Dividends to family may be caught by TOSI.
Draws aren’t salary. Partnership income is allocated under the agreement, and we track each partner’s capital and draws.
General and trust bookkeeping starts from $350/month (quarterly; monthly from $500), the Bookkeeping Review is $195/month or $295/quarter (from $450 per review for complex books), GST/HST returns are $150 per return, catch-up from $1,800 per year, corporate T2 returns from $800 and personal T1 returns from $110. Payroll is quoted after a free call. Prices are + HST/GST. You get the price in writing before any work starts.
Yes. We rebuild the missing months first, oldest to newest, so you can review and sign them.
Yes, fully online, or in person by appointment in Etobicoke or Mississauga.
Within one business day, and a real person answers 24/7 at 866-254-5368.
Keep your trust records spot-audit ready
Book a free call about your trust reconciliations, HST or professional corporation. We reply within one business day; call 866-254-5368 and a real person answers 24/7.
Reviewed by Wajahat Ajmal, CPA, FCCA. Updated October 15, 2026.
Related services: Bookkeeping · Catch-up bookkeeping · Corporate taxes · Personal tax · Payroll · Virtual CFO · Contact us
Rates and thresholds change, so we link to the official sources for current figures.