CPA Firm Serving PA, NJ, NY, & DE

Legal Accountant in Old City

At SD Associates, P.C, we have a team of skilled accounting professionals who offer full-service legal accounting in Old City. 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: Proper documentation is essential in legal accounting. Failing to document transactions, properly classify expenses, and keep current records can lead to penalties or litigation.

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: 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: When it comes to legal accounting, even minor data input errors might lead to major blunders. Attorneys must pay close attention to all transactions to ensure that any mistakes are identified as soon as possible.

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 full IOLTA account management services to law firms of various sizes in Old City. Our Old City 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 Old City 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 Old City Today

At SD Associates, P.C., we understand the significance of your law firm’s finances and the requirement for expert handling. Our skilled legal accountant in Old City can provide extensive support and recommendations for the management of your trust accounts, taxes, bookkeeping, and other accounting needs. Please call us at (215) 517-5600 to schedule a consultation and learn more about our legal accounting services.

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

Looking For More From Your CPA?

When you partner with SD Associates, P.C., you’re working with a top-notch team of knowledgeable tax professionals. With over 3 decades of experience, we strive to provide our clients with the highest level of service.

Full-service CPA Firm

Over 35 Years in Business

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Wide Client Base

Experienced CPAs with Advanced Degrees