Accountant Trusted by Law Firms Since 1983

CPA Firm Serving PA, NJ, NY, & DE

Legal Accountant in Bedminster

To achieve success, a law firm requires not only a skilled attorney but also a dependable and seasoned accountant. SD Associates, P.C., has legal accountants in Bedminster who possess the expertise and know-how to manage all your financial requirements. With more than 35 years of experience, we take pride in serving clients who need a comprehensive accounting firm for their law firm’s finances.

Our services are customized to meet the specific requirements of attorneys who face the intricacies of managing a law firm. We comprehend the challenges of this industry and offer tailored financial solutions that are both economical and compliant with industry standards. Our adept team provides support in accounting, tax preparation, budgeting, and financial planning to assist your business in achieving its financial objectives.

Common Legal Accounting Mistakes

Mishandling trust accounts: A common practice amongst law firms, trust accounts are used to store client monies and must be managed accurately. Mismanaging trust accounts can lead to serious financial consequences for the firm, including fines and potential legal action from clients.

Failing to keep accurate records: Inadequate record-keeping practices can adversely affect a firm’s financial well-being. Inaccurate records make it challenging to monitor client payments and maintain balanced accounts, which can cause cash flow problems and the misappropriation of funds.

Not being aware of applicable laws: Regulations governing financial management in law firms can vary across different states. Inadequate comprehension of relevant laws and regulations can severely impact a firm’s finances, resulting in hefty fines or even criminal charges.

Incorrectly identifying income as revenue and vice versa: Income and revenue are distinct concepts that can be mistakenly interchanged. Income denotes the total amount of money received, while revenue refers to the net profit after expenses have been deducted. Confusing the two can result in an erroneous financial overview and could potentially lead to income loss.

Entering data incorrectly: Incorrect data entry is one of the most common accounting mistakes. Even a single incorrect figure can throw off the firm’s entire balance sheet, leading to lost time and money. It could also result in potential legal issues.

Avoiding professional assistance: Although some law firms may choose to handle their financial management in-house, seeking the help of a professional legal accountant can prove to be invaluable. A competent legal accountant in Bedminster can offer expert guidance and ensure the accuracy of all financial records while ensuring compliance with relevant laws and regulations.

Trust Accounting

Trust accounting refers to the management of funds held on behalf of others by legal professionals, including attorneys, accountants, and other fiduciaries. Examples of these funds include settlement monies, court fees, advanced charges, and retainer fees. These accounts must adhere to state and federal regulations that necessitate frequent record-keeping, meticulous transaction tracking, timely reporting of any inconsistencies or alterations, and periodic audits.

SD Associates, P.C. is staffed with seasoned professionals who are proficient in trust accounting procedures and the corresponding legal requirements. We provide thorough trust accounting services, which encompass meticulous record-keeping and precise financial reporting. Our adept team is well-versed in the state and federal regulations, ensuring that your trust accounts are managed in full compliance with applicable laws.

IOLTA Account Management

An IOLTA (Interest on Lawyers’ Trust Accounts) account is a trust account designed to separate client payments from the operational finances of a legal practice. An IOLTA enables a legal practice to handle finances while preserving the interests of their clients.

At SD Associates, P.C., we understand the importance of managing IOLTA accounts with accuracy and efficiency. That is why our experienced team has extensive knowledge and experience in managing trust accounts for legal professionals. We have a comprehensive understanding of the regulations governing such accounts, as well as the necessary procedures to ensure compliance with those regulations.

Legal Bookkeeping Solutions

Bookkeeping is an integral part of the day-to-day operations for any business, but it can be particularly tricky for legal firms. There are many numbers, accounts and records to keep track of that are unique to the legal industry. At SD Associates, P.C., we understand this complexity and provide tailored bookkeeping solutions for our clients.

Our team of experienced accountants possesses extensive knowledge in the legal industry and can consolidate financial data into practical reports and analyses that will facilitate the growth of your practice. Additionally, we offer a comprehensive set of monthly financial statements that provide you with a deep understanding of your business’s financial well-being.

Legal Accounting FAQs

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

Yes. The legal structure of your law firm can have a significant impact on the taxes you pay. It’s important to consult with an experienced legal accounting professional who understands tax laws and regulations, so that you can ensure your business is structured in the most efficient way possible from both a financial and regulatory standpoint.

What should I do if I am being audited?

An audit doesn’t have to be a stressful event. If you are facing an audit, it is important to contact a legal accounting professional who can provide guidance and advice on how to best prepare for the process. An experienced accountant will help ensure that all of your documents are in order and that all relevant information is presented correctly.

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) may be helpful for law firms that are looking to assess their overall financial health, or if they wish to pursue external financing. Our legal accountant in Bedminster can provide advice and guidance on how GAAP applies to your individual business structure.

Contact Our Legal Accountant in Bedminster Today

SD Associates, P.C., a legal accountant in Bedminster, is available to guide you through the intricacies of financial management and taxation. Whether you require assistance with an audit or want to enhance your business structure for maximum efficiency and profitability, contact us today at (215) 517-5600 to initiate the process. Our skilled team is devoted to providing personalized solutions that are tailored to the needs of your law firm.

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