CPA Firm Serving PA, NJ, NY, & DE

Legal Accountant in Sellersville

In order for a law firm to thrive, having a competent and experienced accountant is just as crucial as having a skilled attorney. At SD Associates, P.C., our legal accountants in Sellersville possess the expertise and proficiency to address all your financial requirements. Having been in the business for over 35 years, we take pride in serving clients who demand a comprehensive accounting firm to handle their law firm’s finances.

Our services are customized to meet the specific requirements of attorneys who face the intricacies of managing a law firm. We comprehend the challenges of this industry and offer tailored financial solutions that are both economical and compliant with industry standards. Our adept team provides support in accounting, tax preparation, budgeting, and financial planning to assist your business in achieving its financial objectives.

Common Legal Accounting Mistakes

Mishandling trust accounts: Law firms often use trust accounts to store client funds, and it is crucial to manage them accurately. Mishandling trust accounts can result in severe financial repercussions for the firm, including penalties and possible legal action from clients.

Failing to keep accurate records: Poor record keeping can be damaging to a firm’s financial health. Without accurate records, it is difficult to track client payments and keep the books balanced, potentially leading to cash flow issues and misallocated funds.

Not being aware of applicable laws: Laws that apply to law firm financial management can vary from state to state. Failing to understand applicable laws and regulations can have a damaging effect on the firm’s finances, leading to costly fines or even criminal charges.

Incorrectly identifying income as revenue and vice versa: Although income and revenue are distinct, they are often mistaken for one another. Income refers to the total amount of money earned, whereas revenue is the profit obtained after settling expenses. Misinterpreting these terms can lead to an erroneous financial overview and may result in lost income.

Entering data incorrectly: Data entry errors are among the most frequent accounting mistakes. Even a solitary incorrect digit can disrupt the entire balance sheet, resulting in wasted time and monetary loss for the firm. Additionally, it could also give rise to possible legal problems.

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 Sellersville can offer expert guidance and ensure the accuracy and compliance of all financial records with relevant laws and regulations.

Trust Accounting

Trust accounting is the management of funds held by legal professionals, including attorneys, accountants, and other fiduciaries, on behalf of others. These funds may include settlement monies, court fees, advanced charges, and retainer fees. To comply with state and federal regulations, these accounts must be managed with regular record-keeping, precise transaction tracking, prompt reporting of changes or inconsistencies, and periodic audits.

At SD Associates, P.C., our experienced staff is well-versed in trust accounting procedures and the applicable laws governing them. We provide comprehensive trust accounting services for our clients, including detailed record-keeping and financial reporting. Our team is familiar with the requirements of state and federal regulations, ensuring that your trust accounts are managed in compliance with all applicable laws.

IOLTA Account Management

An IOLTA (Interest on Lawyers’ Trust Accounts) account is a trust account designed to separate client payments from the operational finances of a legal practice. An IOLTA enables a legal practice to handle finances while preserving the interests of their 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 crucial aspect of daily operations for any business, but it can pose challenges for legal firms due to the multitude of numbers, accounts, and records that are unique to the legal industry. At SD Associates, P.C., we comprehend this intricacy and offer customized bookkeeping solutions for our clients.

Our accomplished team of accountants possesses a vast amount of expertise in the legal arena and can consolidate financial data into useful reports and analyses that will propel your practice forward. We can also furnish you with a comprehensive suite of monthly financial statements, providing you with a clear understanding of the financial condition of your business.

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 Sellersville can provide advice and guidance on how GAAP applies to your individual business structure.

Contact Our Legal Accountant in Sellersville Today

SD Associates, P.C. is a Sellersville legal accounting firm that can assist you in managing financial complexities and taxation issues. Whether you require assistance in managing an audit or optimizing your business structure for enhanced efficiency and profitability, contact us today at (215) 517-5600 to begin. Our expert team is dedicated to providing personalized solutions that are tailored to meet the unique needs of your law firm.