CPA Firm Serving PA, NJ, NY, & DE

Legal Accountant in Hatboro

Law firms have diverse financial and accounting requirements that need the expertise of professionals. At SD Associates, P.C., our legal accountant in Hatboro 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: Trust accounts are frequently established by law firms to separate funds designated for clients. Nevertheless, many law firms do not implement suitable procedures when establishing and managing these accounts.

Failing to keep accurate records: Legal accounting necessitates meticulous record-keeping to track accounts receivable, accounts payable, and clients’ trust funds. In the absence of precise records, it is easy to miss filing deadlines or make other expensive errors.

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: Attorneys often misidentify payments as income or revenue. It is crucial to distinguish between the two and guarantee the correct classification of all payments to avoid costly errors.

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 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 Hatboro, 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 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

Accurate records are essential for any business. At SD Associates, P.C., our experienced professionals provide reliable and comprehensive bookkeeping services to help you maintain organized records of your financial transactions. Our team of CPAs and accountants is well-versed in all aspects of legal financial management, so you can rest assured that your accounting needs are taken care of.

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 Hatboro Today

If you have questions about your law firm’s legal structure, taxes, or auditing process, contact our Hatboro 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!