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Legal Accountant in Bala Cynwyd

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 Bala Cynwyd 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 established with an intention to separate funds meant for clients. However, many law firms fail to implement appropriate processes in setting up and handling such 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: 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: Lawyers frequently misclassify payments as either income or revenue. It is crucial to differentiate between the two and accurately classify all payments to avoid expensive errors.

Entering data incorrectly: Manual data entry errors can have a significant impact on the accuracy of financial records. It’s important to double check all entries and ensure that all data is entered correctly.

Avoiding professional assistance: It’s important to work with experienced professionals for guidance and assistance. We can help provide the expertise needed to ensure that your finances are managed accurately.

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 Bala Cynwyd, 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 provides regular reconciliation reports so that attorneys can easily monitor their IOLTA accounts and stay in compliance with trust account management rules. We strive to make sure all parties involved feel secure that the funds are being managed correctly and efficiently. Let SD Associates, P.C.’s experienced legal accounting team handle your IOLTA account transactions so you can focus on providing quality 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 Bala Cynwyd Today

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

Accountants Serving Philadelphia, Bucks County, Montgomery County, & Surrounding Counties

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