CPA Firm Serving PA, NJ, NY, & DE

Legal Accountant in Chestnut Hill

At SD Associates, P.C, we have a team of skilled accounting professionals who offer full-service legal accounting in Chestnut Hill. Our firm is dedicated to providing services that cater to your unique needs and preferences. We specialize in various areas, such as tax planning and preparation, financial statements, and consultation services. Our commitment to quality service ensures that we exceed our clients’ expectations.

SD Associates, P.C is a trusted provider of top-tier financial management support and guidance to law firms. Our services cater to individuals seeking tax assistance, corporations filing financial statements, and law firms seeking accounting support. We collaborate closely with our clients to ensure their finances are managed optimally, with an emphasis on efficiency and cost-effectiveness.

Common Legal Accounting Mistakes

Mishandling trust accounts: Managing trust accounts is a crucial component of legal accounting. Improper use of trust accounts can result in significant penalties.

Failing to keep detailed records: In legal accounting, maintaining proper documentation is imperative. Neglecting to document transactions, accurately categorize expenses, and maintain current records can result in substantial compliance issues.

Not being aware of applicable laws: Every state has its own set of legal accounting rules and regulations. Attorneys must be familiar with the legislation of the state in which they practice.

Incorrectly identifying income as revenue and vice versa: In accounting, the terms “income” and “revenue” are often used interchangeably, leading to confusion. However, in legal accounting, it is crucial for attorneys to understand the difference between these two concepts.

Entering data incorrectly: Even minor errors in data input can have significant consequences in legal accounting. Attorneys must exercise utmost care when reviewing transactions to identify any errors.

Avoiding professional assistance: Accountants with expertise in the complex field of legal accounting can provide invaluable guidance. Attorneys who fail to seek expert support may be subject to penalties if they are unaware of critical rules or regulations.

Trust Accounting

Law firms employ trust accounting to keep client funds separate from the company’s finances. Trust funds may include settlement monies, court fees, advanced charges, and retainer fees. Proper management of trust accounts is crucial as it prevents commingling of client and corporate funds. Negligent handling and financial mismanagement can occur due to improper management.

At SD Associates, P.C., we understand the significance of trust accounting services. We provide all-encompassing solutions to guarantee that all operations adhere to the industry’s best practices. Our legal accountants have extensive experience providing dependable guidance to our clients, and we take meticulous care in monitoring all transactions.

IOLTA Account Management

The IOLTA is an account created exclusively for lawyers, serving as a financial instrument. Its primary purpose is to separate trust funds from operating funds, providing the means to manage client funds obtained on their behalf.

SD Associates, P.C. provides an all-encompassing range of IOLTA account management solutions for law firms. Our skilled legal accountant in Chestnut Hill will collaborate with you to ensure that your IOLTA accounts comply with ethical standards. In addition, we offer detailed reports that summarize the transactions within each client’s IOLTA account.

Legal Bookkeeping and Accounting Solutions

SD Associates, P.C. is proud to provide comprehensive legal bookkeeping and accounting services for law firms. Our team has extensive experience in managing financial records, forecasting cash flows, preparing reports, and collecting payments. We understand that legal entities have unique needs that require specialized attention. That’s why we take the time to understand each client’s business.

Legal Accounting FAQs

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

Depending on the legal structure of your law firm, there may be different tax requirements. For example, a partnership, limited partnership or LLC may be subject to different tax requirements than a sole proprietorship. Our Chestnut Hill legal accountant can help you understand how your firm’s legal structure affects your taxes and provide advice on the most beneficial taxation options for your specific situation.

What should I do if I am being audited?

If you are being audited, it is important to seek professional advice from a qualified legal accountant. We can provide comprehensive assistance with resolving tax compliance issues, including an audit. We have extensive experience in dealing with IRS and state agencies and can help ensure that the process goes as smoothly as possible.

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 generally recommended in order to maintain accurate and consistent financial information. Our team at SD Associates, P.C., can provide guidance on how to apply GAAP principles to your law firm’s accounting system.

Contact Our Legal Accountant in Chestnut Hill Today

At SD Associates, P.C., we understand the significance of your law firm’s finances, and we appreciate that they necessitate professional handling. To that end, our experienced Chestnut Hill legal accountant can offer you comprehensive advice on a wide range of financial matters, including trust accounts, bookkeeping, taxes, and more. To learn about our legal accounting services and book a consultation for your business, call us today at (215) 517-5600.