CPA Firm Serving PA, NJ, NY, & DE

Legal Accountant in Northern Liberties

At SD Associates, P.C, our skilled team of accounting professionals offers a range of full-service legal accounting in Northern Liberties. Our services cater to your unique needs and specifications. We offer tax planning and preparation, financial statements, consulting, and more, all delivered with a commitment to excellence.

SD Associates, P.C is a trusted provider of top-notch financial management support and guidance to law firms. Our expertise extends to individuals in need of tax assistance, corporations requiring financial statement filing, and law firms seeking accounting assistance. You can rely on our unwavering commitment to delivering the highest level of service.

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: Legal accounting rules and regulations vary by state. Attorneys must acquaint themselves with the legislation of the state in which they practice. Failure to do so may lead to a breach of regulations associated with the practice of law.

Incorrectly identifying income as revenue and vice versa: The phrases ‘income’ and ‘revenue’ are frequently used interchangeably, which causes misunderstanding. When dealing with legal accounting, it is critical for attorneys to know the distinction between these 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: In the intricate area of legal accounting, experienced legal accountants may give vital insight. Attorneys who neglect to seek assistance may be penalized because 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.

SD Associates, P.C. recognizes the significance of trust accounting services. We provide all-encompassing solutions to guarantee that activities are managed in accordance with industry standards. Our team has extensive experience providing dependable advice, and we meticulously document all transactions.

IOLTA Account Management

A financial instrument called IOLTA (Interest on Lawyers’ Trust Accounts) is exclusively created for lawyers. It assists them in separating trust funds from operational funds, enabling them to monitor and handle client funds.

SD Associates, P.C. provides full IOLTA account management services to law firms of various sizes in Northern Liberties. Our Northern Liberties legal accountants can assist you in establishing, overseeing, and managing your IOLTA accounts. We adhere to the highest ethical standards, and our comprehensive reports detail the activities in 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 Northern Liberties 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 Northern Liberties Today

Your law firm’s finances are important and deserve professional attention. At SD Associates, P.C., our experienced Northern Liberties legal accountant can provide comprehensive guidance on managing your trust accounts, bookkeeping, taxes, and more. Contact us today at (215) 517-5600 to learn more about our legal accounting services and schedule a consultation for your business.