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Legal Accountant in Montgomeryville

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 Montgomeryville 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: 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 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: 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 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 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 Montgomeryville, understands the complexities of trust accounting and provides clients with reliable trust administration services that promote accurate 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

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 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 Montgomeryville Today

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