Mana Accounting & Advisory

Criminal Defense Firms

Accounting built for defense practices. We manage unearned retainer compliance, IOLTA trust accounts, flat fee and hourly billing, and the financial reporting that keeps your practice running clean.

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Criminal Defense Financial Challenges

Criminal defense practices operate differently from most law firms — flat fees, unearned retainers, high client volume, and significant investigator and expert costs that have to be tracked and recovered. Most accounting systems aren't built for this. We are.

Unearned Retainer Management

Retainers received before services are rendered must stay in your IOLTA trust account until earned. We track every retainer by client, transfer earned amounts on schedule, and maintain the documentation that protects you from bar complaints.

Flat Fee Revenue Recognition

Flat fees are often paid upfront but earned over the life of a matter. We ensure flat fee revenue is recognized correctly — so your financials reflect what's actually been earned, not just what's been received.

Investigator & Expert Cost Tracking

Private investigators, forensic experts, and other case-specific costs add up quickly. We track every expense by matter so you know your cost exposure before trial and can invoice or account for it accurately.

High Client Volume Reconciliation

Criminal defense practices often manage dozens of active matters simultaneously. We build financial systems that scale with your volume and keep reconciliations current — without requiring you to be your own bookkeeper.

Criminal Defense Financial Solutions

Financial systems designed for the retainer model and high-volume defense practice.

Retainer & IOLTA Compliance

Unearned retainers held in trust represent one of the most common sources of bar complaints in criminal defense. We build the systems that keep you compliant — tracking every dollar from receipt through earning to disbursement.

Retainer Sub-Ledgers

Every client retainer tracked individually — balance, earned amounts, and remaining trust balance at any point in time.

Earned/Unearned Reconciliation

We reconcile what's been earned against what's been transferred to operating — so your IOLTA balance always reflects unearned funds only.

Flat Fee & Hourly Billing Reporting

Whether your practice is primarily flat fee, hourly, or a mix, we build reporting that shows you actual earned revenue — not just cash received — so your financials are meaningful.

Flat Fee Revenue Tracking

Earned revenue recognized as services are performed — not just when the retainer clears.

Realization Rate by Matter Type

See what you're actually collecting vs. what's been billed — by case type, attorney, or time period.

Case Cost Tracking for Defense Practices

We track investigator fees, expert witness costs, transcripts, and other case expenses by matter — so you always know your exposure and can invoice or account for them accurately.

  • Per-Matter Investigator & Expert Cost Ledger
  • Transcript and Discovery Expense Tracking
  • Cost Recovery Invoicing Support
  • Trial Preparation Cost Summaries

How Retainer Funds Flow Through IOLTA

For criminal defense firms, unearned retainers must be held in trust until they're earned — with clear documentation at every stage. Here's exactly how a properly managed retainer flows.

1

Retainer Received & Deposited into IOLTA

The client's retainer payment is deposited directly into your IOLTA trust account — not your operating account. The funds are unearned and must stay in trust until services are rendered.

The client sub-ledger is opened at this step. Balance = full retainer received. This is the starting point for every future earned/unearned reconciliation.
2

Services Rendered & Fee Earned

As work is performed — initial appearance, motions, hearings, trial prep — the corresponding earned fee is calculated and documented. The earning event must be tied to actual work performed.

For flat fee matters, the earning methodology (e.g., percentage at each milestone) should be defined upfront and applied consistently.
3

Earned Amount Transferred to Operating

Once fees are earned, the corresponding amount is transferred from your IOLTA trust account to your operating account and recorded as income.

The sub-ledger is updated to reflect the transfer. Remaining trust balance equals total retainer received minus total earned and transferred to date.
4

Retainer Replenishment (If Applicable)

If the original retainer is consumed before the matter concludes, a replenishment request goes to the client. The new funds are deposited into IOLTA and added to the sub-ledger.

Tracking replenishments separately from original deposits gives you a clear picture of total fees collected by matter.
5

Matter Concludes — Final Reconciliation

At matter close, the sub-ledger is finalized. Any unused retainer balance is refunded to the client. Any remaining earned balance is transferred to operating. Trust balance for the matter: $0.

This zero-out is your bar compliance documentation. Any balance left in trust without an active matter is a compliance risk.

Criminal Defense Performance Metrics

The numbers that tell you whether your defense practice is profitable, compliant, and sustainable.

100%
IOLTA Compliance Rate

Unearned retainers tracked in trust. Earned fees transferred on schedule. Zero commingling.

85%+
Target Collection Rate

Collected vs. billed — tracking this tells you where fee recovery is leaking by case type or attorney.

20%
Average Cost Savings from Tracking

Firms that track investigator and expert costs per matter recover more and over-advance less.

2×
Faster Financial Reporting

Systemized retainer tracking means month-end close doesn't require reconstructing three months of trust movements.

Key Metrics We Track

Retainer Utilization Rate
How much of each retainer is earned before replenishment is needed — a proxy for matter complexity.
Collection Rate by Case Type
What percentage of billed fees are actually collected, broken down by felony, misdemeanor, federal, etc.
Average Case Cost
Investigator, expert, and other expenses per matter — helps you price flat fees accurately.
Active Matter Count
Caseload at any point — combined with revenue, tells you effective revenue per active matter.
Trust Account Balance vs. Unearned Fees
These should match exactly. Any gap is a compliance risk we catch before it becomes a bar issue.
Operating Cash Runway
Months of overhead covered by current operating cash — critical when retainer timing is irregular.

Questions from Criminal Defense Attorneys

What criminal defense attorneys ask us most before getting started.