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Legal Accountant in Abington

Law firms have diverse financial and accounting requirements that need the expertise of professionals. At SD Associates, P.C., our legal accountant in Abington has extensive experience in the legal industry, providing you with the highest quality of service available. Our services encompass bookkeeping, tax preparation, IOLTA account management, and more.

Common Legal Accounting Mistakes

Mishandling trust accounts: Establishing trust accounts is a standard procedure among law firms to isolate funds intended for clients. Nevertheless, many law firms fall short in establishing and managing such accounts.

Failing to keep accurate records: Meticulous record-keeping is essential for legal accounting. Firms must monitor accounts receivable, accounts payable, and clients’ trust funds. Inaccurate records can lead to missed filing deadlines or other costly errors.

Not being aware of applicable laws: Each state has distinct laws and regulations regarding legal accounting, underscoring the importance of knowing the specific requirements of your state. Non-compliance with these regulations may result in expensive fines or legal action.

Incorrectly identifying income as revenue and vice versa: Lawyers frequently misclassify payments as either income or revenue. It is crucial to differentiate between the two and accurately classify all payments to avoid expensive errors.

Entering data incorrectly: Manual data entry errors can have a significant impact on the accuracy of financial records. It’s important to double check all entries and ensure that all data is entered correctly.

Avoiding professional assistance: It is essential to collaborate with experienced professionals like SD Associates for guidance. They can provide the expertise necessary to accurately monitor your finances.

Trust Accounting

Trust accounting is a practice that attorneys, accountants, and other fiduciaries use to manage client funds. Trusts may be set up to manage a variety of assets, including cash, securities and real estate. SD Associates P.C., a legal accountant in Abington, understands the complexities of trust accounting and provides clients with reliable trust administration services that promote accurate record keeping and financial stability.

We can help you create an effective plan for managing your trusts, as well as staying up-to-date on the latest regulations and laws. Our professionals will ensure that all client funds are accounted for, managed responsibly and reported accurately. With our trust accounting services, you can rest assured that your clients’ funds are secure and well-managed.

IOLTA Account Management

An IOLTA (Interest on Lawyers’ Trust Accounts) account is designed to keep client funds separate from the attorney’s personal funds. Our legal accounting experts at SD Associates, P.C. recognize the intricacy of IOLTA accounts and provide thorough management services for such accounts. We guarantee that all IOLTA account transactions are correctly documented in compliance with state regulations.

Our team additionally supplies periodic reconciliation reports to allow attorneys to easily monitor their IOLTA accounts and adhere to trust account management guidelines. We aim to instill confidence in all involved parties that the funds are being appropriately and effectively managed. Allow SD Associates, P.C.’s accomplished legal accounting team to handle your IOLTA account transactions, freeing you up to concentrate on delivering exceptional legal services to your clients.

Legal Bookkeeping Solutions

Accurate record-keeping is crucial for any business. At SD Associates, P.C., our seasoned professionals furnish dependable and comprehensive bookkeeping services to assist you in maintaining well-organized records of your financial transactions. Our team of CPAs and accountants possess extensive proficiency in all facets of legal financial management, ensuring that your accounting requirements are adequately addressed.

We offer a comprehensive array of bookkeeping services, including the preparation of precise financial statements and reports, monitoring receivables and payables, creating budgets, managing payrolls, and more. We recognize the significance of maintaining current records for the financial wellbeing of your business. Therefore, our proficient staff is committed to ensuring accuracy and efficiency in all of our bookkeeping solutions.

Legal Accounting FAQs

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

Yes. The type of legal structure of your law firm (i.e., sole proprietorship, partnership, limited liability company, etc.) can significantly impact the way you and your business are taxed by the Internal Revenue Service (IRS). It is important to make sure that your legal structure is set up properly to ensure compliance with all applicable IRS regulations. SD Associates, P.C. has extensive experience in helping law firms with their legal structure and navigating the complexities of tax law.

What should I do if I am being audited?

Preparation is key if you are being audited. An audit can be a stressful experience, so it is important to have the right professionals on your side. SD Associates, P.C. specializes in assisting law firms through the audit process and has a team of experienced attorneys and accountants who will help you navigate the audit with ease and confidence. We understand that the audit process can be complex and intimidating, so we will take the time to explain each step of the process to you.

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) is recommended, especially if the law firm will be seeking financing or investment. SD Associates, P.C. is experienced in helping law firms adhere to and understand GAAP standards, as well as providing them with complete financial reporting services to ensure compliance.

Contact Our Legal Accountant in Abington Today

If you have questions about your law firm’s legal structure, taxes, or auditing process, contact our Abington legal accountant at SD Associates, P.C., today. We understand the complexities of the tax code and provide comprehensive accounting services. Call (215) 517-5600 to get started!