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Legal Accountant in Fort Washington

Legal firms require a broad spectrum of accounting and financial services, ranging from tax preparation to estate planning, necessitating the assistance of experts who can navigate the complexities of their cases. Our Fort Washington legal accountant at SD Associates, P.C. has extensive experience in the legal field and offers unparalleled service.

Common Legal Accounting Mistakes

Mishandling trust accounts: Trust accounts are established with an intention to separate funds meant for clients. However, many law firms fail to implement appropriate processes in setting up and handling such accounts.

Failing to keep accurate records: Legal accounting requires meticulous record keeping in order to properly track accounts receivable, accounts payable and clients’ trust funds. Without accurate records it can be easy to miss filing deadlines or make other costly mistakes.

Not being aware of applicable laws: Different states have different laws and regulations governing legal accounting, so it’s important to understand the specific requirements of your state. Failing to abide by these rules can lead to costly penalties or litigation.

Incorrectly identifying income as revenue and vice versa: Lawyers often incorrectly classify payments as income or revenue. It’s important to understand the difference between the two and ensure that all payments are correctly classified.

Entering data incorrectly: Manual data entry mistakes can have a considerable impact on the precision of financial records. That’s why it’s essential to verify all entries and ensure the accuracy of all data entered.

Avoiding professional assistance: It’s important to work with experienced professionals for guidance and assistance. We can help provide the expertise needed to ensure that your finances are managed accurately.

Trust Accounting

Trust accounting is a method that attorneys, accountants, and other fiduciaries utilize to administer client funds. Trusts can be established to manage an array of assets, including cash, securities, and real estate. SD Associates P.C., a legal accounting firm in Fort Washington, acknowledges the intricacies of trust accounting and offers dependable trust administration services that foster precise record-keeping and financial stability for clients.

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 type of account that attorneys have to manage clients’ funds separately from their own. At SD Associates, P.C., our legal accounting experts understand the complex nature of IOLTA accounts and can provide comprehensive management services for such accounts. We ensure all IOLTA account transactions are documented properly and in accordance with state regulations.

Our team also supplies routine reconciliation reports to enable attorneys to easily monitor their IOLTA accounts and maintain compliance with trust account management regulations. We endeavor to ensure that all stakeholders are confident that the funds are being managed appropriately and efficiently. Allow SD Associates, P.C.’s knowledgeable legal accounting team to manage your IOLTA account transactions, freeing you to concentrate on providing excellent legal services to your clients.

Legal Bookkeeping Solutions

Precise records are critical for any business. At SD Associates, P.C., our skilled professionals provide dependable and thorough bookkeeping services to assist you in maintaining well-organized records of your financial transactions. Our team of CPAs and accountants possesses expertise in all aspects of legal financial management, providing you with peace of mind that your accounting requirements are being met.

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 Fort Washington Today

In case you need assistance with your law firm’s legal structure, tax matters, or audit procedures, reach out to our Fort Washington legal accountant at SD Associates, P.C. We are well-versed in the intricacies of tax regulations and offer a wide range of accounting services. To begin, simply dial (215) 517-5600!