A solo attorney in Denver gets a $5,000 retainer from a new client. She deposits it into her operating account instead of her trust account. Three months later, during a bar audit, she discovers the error. The state bar doesn't care that it was an honest mistake — commingling client funds is an ethics violation. She faces disciplinary action that costs $15,000 in legal fees and six months of stress.
IOLTA (Interest on Lawyer Trust Accounts) compliance is the accounting nightmare unique to law. Every state requires attorneys to keep client funds separate from operating funds. Commingling — even accidentally — is a bar violation that can end careers. Yet QuickBooks and Xero have no concept of trust accounting. Attorneys jury-rig workarounds or use expensive legal-specific software.
CosmoLex ($89-109/user/month) is the market leader but bundles trust accounting with full practice management — overkill if you just need accounting. Clio ($49-139/user/month) is practice management first, accounting second. The gap is a focused trust accounting tool at $29-49/month for solo and small firm attorneys who already use Clio for practice management: IOLTA-compliant trust ledgers, three-way reconciliation, client ledger cards, and simple compliance reports. Not full practice management — just the accounting piece that QuickBooks can't handle.
What People Are Saying
Real voices expressing this pain point
I need to get an accounting program and Im tired of programs that suck. Nothing is formed properly for attorneys and what we need to do but we all just deal with it, which is wild. Its 2025.
💰 Revenue Blueprint
Three-tier value ladder to monetize from day one
Trust accounting, 1 IOLTA account, 3-way reconciliation, client ledgers
Multiple trust accounts, operating account tracking, compliance reports, Clio integration
Unlimited accounts, team access, auto-reconciliation, audit-ready exports, QuickBooks sync
📊 Market Evidence
🏆 Competitor Landscape
How existing players stack up in this market
| Competitor | Pricing | Notes |
|---|---|---|
| CosmoLex | $89/user/mo (annual) to $99-109/mo monthly | All-in-one legal accounting. Strong trust accounting & IOLTA. No integrations needed but less flexible. 1M+ trust transactions processed. |
| Clio | $49-139/user/mo (3 tiers) | Market leader in practice management. Accounting is add-on, not core. 250+ integrations. 150k+ legal professionals. Trust accounting requires higher tier. |
| PracticePanther | $49+/user/mo (Solo/Essential/Business) | Good all-rounder but accounting features basic. Integrates with QuickBooks. Popular with small firms. No native IOLTA compliance. |
| QuickBooks + TrustBooks | $30-200/mo combined | DIY approach. QBO lacks trust accounting. TrustBooks adds it ($49/mo) but clunky integration. Attorneys hate this setup. |
All-in-one legal accounting. Strong trust accounting & IOLTA. No integrations needed but less flexible. 1M+ trust transactions processed.
Market leader in practice management. Accounting is add-on, not core. 250+ integrations. 150k+ legal professionals. Trust accounting requires higher tier.
Good all-rounder but accounting features basic. Integrates with QuickBooks. Popular with small firms. No native IOLTA compliance.
DIY approach. QBO lacks trust accounting. TrustBooks adds it ($49/mo) but clunky integration. Attorneys hate this setup.
🛠️ Recommended Tech Stack
Suggested tools and technologies to build this idea
Why this stack: Focus on trust accounting only. Integrate with Clio/PracticePanther via API. State-specific compliance rules.
Score Breakdown
Good market signals with room for growth
Market (20%) + Revenue (20%) + Trend (15%) + Competition (15%) + Build (15%) + Pricing (15%)
🚀 Start Building
Copy a prompt into your favorite AI coding tool and start building this idea right now.
Build a SaaS product called "Law Firm Accounting Bridge". ## Product Overview Accounting software for attorneys - trust accounting, IOLTA compliance, retainer tracking built-in ## Problem Accounting software for attorneys - trust accounting, IOLTA compliance, retainer tracking built-in ## Solution Build Law Firm Accounting Bridge ## Target Audience indie hackers, small businesses, and solopreneurs ## Tech Stack - Next.js 15 (App Router) with TypeScript - Tailwind CSS v4 for styling - Supabase for auth, database, and storage - Vercel for deployment - shadcn/ui for UI components - Framer Motion for animations ## MVP Features to Build 1. Landing page with clear value proposition 2. User authentication (sign up, sign in, forgot password) 3. Core product functionality based on the solution above 4. Dashboard for users to manage their data 5. Pricing page with at least 2 tiers (free + paid) 6. Basic settings/profile page ## Known Competitors CosmoLex, Clio, PracticePanther, QuickBooks + TrustBooks ## Key Risks to Address Standard market entry risks ## Deployment 1. Set up Supabase project and configure environment variables 2. Deploy to Vercel with `npx vercel --prod` 3. Set up custom domain 4. Configure Supabase RLS policies for security ## Instructions Start by creating the project structure, then build the landing page first. Use server components where possible. Make it mobile-responsive from the start. Focus on getting the core value loop working before adding polish.