Accurate bookkeeping is essential for law firms for several reasons. First, it ensures compliance with ethical and legal regulations, particularly those surrounding trust accounts (IOLTA). Non-compliance can lead to severe consequences, including disciplinary action and loss of license. Second, accurate financial records are vital for making informed business decisions, tracking profitability, and managing cash flow effectively. Finally, transparent and organized bookkeeping fosters trust with clients, assuring them that their funds are being handled responsibly.