CPA Firm Serving PA, NJ, NY, & DE

Legal Accountant in Feasterville

To achieve success, a law firm requires not only a skilled attorney but also a dependable and seasoned accountant. SD Associates, P.C., has legal accountants in Feasterville who possess the expertise and know-how to manage all your financial requirements. With more than 35 years of experience, we take pride in serving clients who need a comprehensive accounting firm for their law firm’s finances.

We understand the complexities of running a law firm and have tailored our services to meet the unique needs of attorneys, providing them with personalized financial solutions that are both cost-effective and compliant with industry regulations. Whether you need assistance with accounting, tax preparation, budgeting or financial planning, our highly-qualified staff is here to help your business reach its financial goals.

Common Legal Accounting Mistakes

Mishandling trust accounts: Trust accounts are a standard practice in law firms where client funds are held and must be handled with precision. Inaccurate management of trust accounts can result in severe financial ramifications for the firm, such as penalties and possible legal proceedings from clients.

Failing to keep accurate records: Inadequate record-keeping can have a detrimental effect on a firm’s financial stability. The absence of precise records makes it arduous to monitor client payments and maintain balanced books, which can result in cash flow problems and incorrectly allocated funds.

Not being aware of applicable laws: The laws and regulations pertaining to financial management of law firms can differ from one state to another. Ignorance of the relevant laws and regulations can negatively impact a firm’s finances, resulting in expensive fines or even criminal charges.

Incorrectly identifying income as revenue and vice versa: Income and revenue are distinct concepts that can be mistakenly interchanged. Income denotes the total amount of money received, while revenue refers to the net profit after expenses have been deducted. Confusing the two can result in an erroneous financial overview and could potentially lead to income loss.

Entering data incorrectly: Data entry errors are among the most frequent accounting blunders. Even a solitary erroneous figure can disrupt the balance sheet of a firm, resulting in wasted time and money. Additionally, it can lead to possible legal complications.

Avoiding professional assistance: Although some law firms may try to handle their financial management internally, the support of a proficient legal accountant can prove to be indispensable. An accomplished legal accountant in Feasterville can offer expert guidance and ensure the accuracy and compliance of all financial records with relevant laws and regulations.

Trust Accounting

Trust accounting is a practice that involves the managing of funds held on behalf of others by legal professionals such as attorneys, accountants, and other fiduciaries. Settlement monies, court fees, advanced charges, and retainer fees are all examples of these funds. These accounts must be managed in accordance with state and federal regulations, which require regular record-keeping, detailed tracking of transactions, timely reporting of any changes or discrepancies, and periodic audits.

SD Associates, P.C. has a team of knowledgeable professionals who are proficient in trust accounting procedures and the governing laws. We offer extensive trust accounting services to our clients, including thorough record-keeping and financial reporting. Our team is well-versed in state and federal regulations, ensuring that your trust accounts are managed in compliance with all relevant laws.

IOLTA Account Management

An IOLTA (Interest on Lawyers’ Trust Accounts) account is a dedicated trust account that segregates client payments from the operational finances of a legal practice. By utilizing an IOLTA, a legal practice can manage finances while safeguarding the interests of its clients.

At SD Associates, P.C., we understand the importance of managing IOLTA accounts with accuracy and efficiency. That is why our experienced team has extensive knowledge and experience in managing trust accounts for legal professionals. We have a comprehensive understanding of the regulations governing such accounts, as well as the necessary procedures to ensure compliance with those regulations.

Legal Bookkeeping Solutions

Bookkeeping is a vital aspect of daily operations for any business, but it can be especially challenging for legal firms due to the unique accounts, numbers, and records involved. SD Associates, P.C. recognizes this complexity and offers customized bookkeeping solutions for our clients in the legal industry.

Our team of experienced accountants possesses extensive knowledge in the legal industry and can consolidate financial data into practical reports and analyses that will facilitate the growth of your practice. Additionally, we offer a comprehensive set of monthly financial statements that provide you with a deep understanding of your business’s financial well-being.

Legal Accounting FAQs

Does the legal structure of my law firm have an impact on my taxes?

Yes. The legal structure of your law firm can have a significant impact on the taxes you pay. It’s important to consult with an experienced legal accounting professional who understands tax laws and regulations, so that you can ensure your business is structured in the most efficient way possible from both a financial and regulatory standpoint.

What should I do if I am being audited?

An audit doesn’t have to be a stressful event. If you are facing an audit, it is important to contact a legal accounting professional who can provide guidance and advice on how to best prepare for the process. An experienced accountant will help ensure that all of your documents are in order and that all relevant information is presented correctly.

Does GAAP apply to law firms?

Privately-held companies are not required to disclose their financial information. However, adhering to GAAP (Generally Accepted Accounting Principles) may be helpful for law firms that are looking to assess their overall financial health, or if they wish to pursue external financing. Our legal accountant in Feasterville can provide advice and guidance on how GAAP applies to your individual business structure.

Contact Our Legal Accountant in Feasterville Today

SD Associates, P.C., a legal accountant in Feasterville, is available to guide you through the intricacies of financial management and taxation. Whether you require assistance with an audit or want to enhance your business structure for maximum efficiency and profitability, contact us today at (215) 517-5600 to initiate the process. Our skilled team is devoted to providing personalized solutions that are tailored to the needs of your law firm.