CPA Firm Serving PA, NJ, NY, & DE

Legal Accountant in Flourtown

Law firms have a wide range of accounting and financial needs. From tax preparation to estate planning, they need experts who can handle the complexity of their cases. Our Flourtown legal accountant at SD Associates, P.C. has extensive experience in the legal field, offering you the best service available. Our services range from 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 significantly compromise the precision of financial records. This only underscores the importance of reviewing all entries and verifying the accuracy of all data.

Avoiding professional assistance: It is crucial to collaborate with experienced professionals such as SD Associates to obtain guidance and support. They have the expertise necessary to effectively manage your funds.

Trust Accounting

Trust accounting is a practice utilized by attorneys, accountants, and other fiduciaries to oversee client funds. Trusts can be established to manage various assets, including cash, securities, and real estate. SD Associates P.C., a legal accounting firm in Flourtown, comprehends the intricacies of trust accounting and offers dependable trust administration services to clients, fostering precise record-keeping and financial stability.

Our professionals can assist you in developing an efficient plan for administering your trusts while keeping abreast of the latest regulations and laws. We guarantee the accurate accounting, responsible management, and precise reporting of all client funds. With our trust accounting services, you can be confident that your clients’ funds are secure and effectively managed.

IOLTA Account Management

An IOLTA (Interest on Lawyers’ Trust Accounts) is a specialized account that attorneys utilize to manage clients’ funds separately from their own. At SD Associates, P.C., our legal accounting professionals recognize the intricate nature of IOLTA accounts and provide comprehensive management services for such accounts. We ensure that all IOLTA account transactions are correctly documented in compliance with state regulations.

Our team also provides regular reconciliation reports so that attorneys can easily monitor their IOLTA accounts and stay in compliance with trust account management rules. We strive to make sure all parties involved feel secure that the funds are being managed correctly and efficiently. Let SD Associates, P.C.’s experienced legal accounting team handle your IOLTA account transactions so you can focus on providing quality 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 provide a wide range of bookkeeping services including creating accurate financial statements and reports, tracking receivables and payables, developing budgets, managing payrolls and more. We understand the importance of maintaining up-to-date records for your business’s financial health. That’s why our knowledgeable staff is dedicated to ensuring accuracy and efficiency in all 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 Flourtown Today

Should you require assistance with your law firm’s legal structure, tax matters, or auditing procedures, reach out to our Flourtown legal accountant at SD Associates, P.C. Our team is well-versed in the intricacies of tax regulations and offers all-encompassing accounting solutions. Dial (215) 517-5600 to begin your journey with us!