Trusted by Law Firms Since 1983

CPA Firm Serving PA, NJ, NY, & DE

Legal Accountant in Bucks County

SD Associates, P.C. is proud to be the leading legal accountant in Bucks County and the surrounding areas. Local law firms have trusted our financial experts for over 35 years to provide exceptional bookkeeping, tax services, and accounting advice. We understand that legal firms require the expertise of an experienced accountant in order to effectively handle their finances.

Our team of professionals is dedicated to our clients’ success by providing timely, accurate financial guidance and advice. We offer a full suite of accounting services designed to help legal firms manage their finances with confidence. With SD Associates, P.C., you can feel confident that your financial needs are being handled by knowledgeable professionals who will always put your best interests first.

Common Legal Accounting Mistakes

Mishandling trust accounts: A common practice amongst law firms, trust accounts are used to manage the money of a client during a legal dispute and must be managed correctly due to the sensitive nature of these funds. Failing to adhere to regulations related to trust accounts can result in serious consequences, including suspension from practicing law.

Failing to keep accurate records: It is critical for law firms to track their finances and keep up-to-date records of their client’s financial dealings. Failing to do so can lead to disorganization, missed deadlines, and even potential lawsuits.

Not being aware of applicable laws: Every law firm must be aware of the laws and regulations related to their practice. From tax codes to labor laws, attorneys must remain knowledgeable of all applicable legal matters in order to protect their clients and themselves.

Incorrectly identifying income as revenue and vice versa: While related, income and revenue are not the same. It is important for accounting professionals to understand the difference between these two terms in order to accurately report financial information. Otherwise, they could end up paying more or less than necessary in taxes.

Entering data incorrectly: With the ever-changing landscape of financial regulations and tax codes, it is important to stay up-to-date with the most recent information. Entering inaccurate data can be costly, as it can lead to misreported financial statements or late payments. To avoid errors, double check all data entries before submitting them.

Avoiding professional assistance: Accounting is a complex field and requires specialized knowledge. Seeking professional assistance can help legal professionals better understand the financial matters at hand. Experienced legal accountants are instrumental in ensuring that law firms remain compliant with applicable regulations and maximize their profits.

Trust Accounting

Trust accounting refers to the process of handling funds on behalf of a client in accordance with professional obligations and standards. Settlement monies, court fees, advanced charges, and retainer fees are all examples of these funds. These accounts are separate from the law firm’s general operating accounts. At SD Associates, P.C., our team of legal accountants is highly knowledgeable in trust accounting processes and procedures to ensure your financial transactions remain secure and compliant with applicable laws.

Our staff can provide you with appropriate record keeping advice and guidance that meets all state requirements. Additionally, we can help you stay up-to-date on the latest regulations and fiduciary laws. Through our comprehensive services, we strive to provide you with peace of mind when it comes to trust accounting.

IOLTA Account Management

An IOLTA (Interest on Lawyers’ Trust Accounts) account is a trust account that is used to separate client funds from a law firm’s operating funds. An IOLTA allows a law firm to manage funds while protecting their clients’ interests.

SD Associates, P.C. is experienced in providing specialized legal accounting services, including IOLTA account management and reconciliation services. Our team of qualified professionals has the expertise and resources necessary to ensure all transactions are properly managed and recorded in accordance with state regulations. We provide comprehensive services that include account reconciliation, monthly statements and reports, monitoring of transactions to ensure compliance with rules and regulations, and more.

Legal Bookkeeping Solutions

Bookkeeping is a critical component of any successful business, but it can be especially important for legal firms. SD Associates, P.C. provides custom legal bookkeeping services that are tailored to the unique needs of legal firms. Our Bucks County legal accountant understands the complexities of managing finances within the legal industry, so you can trust that our financial services are accurate, reliable and timely. We’ll help you manage your firm’s finances more efficiently, so you can focus on providing quality legal service to your clients.

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, the impact on your taxes can be significant. For example, if you are operating as a sole proprietorship, you may be eligible for certain tax incentives that are not available to other types of businesses. However, if you form a partnership or corporation, there may be additional tax considerations and liabilities that need to be taken into account.

 

What should I do if I am being audited?

An audit can be a stress experience, but it doesn’t have to be. The best way to get through an audit is to cooperate fully with the auditors and provide them with any requested documentation in a timely manner. Additionally, it is beneficial to contact an experienced legal accountant such as SD Associates, P.C., who can help you understand the audit process and ensure that all of your documents are in order.

 

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 still beneficial for law firms as it helps to ensure accurate and consistent financial reporting. An experienced legal accountant can help you create internal systems that meet GAAP requirements while also meeting the specific needs of your firm.

Contact Our Legal Accountant in Bucks County Today

Our Bucks County legal accountant is committed to helping our clients succeed. Law firms throughout the Tri-State area know they can trust SD Associates, P.C. with all of their accounting and financial needs. Contact us today at (215) 517-5600 to schedule your consultation.