CPA Firm Serving PA, NJ, NY, & DE

Legal Accountant in Center City

SD Associates, P.C is a full-service legal accountant in Center City with an experienced team of accounting professionals. Our firm provides comprehensive accounting services that are tailored to your needs. From tax planning to financial statements and consulting services, we provide our clients with quality service that goes above and beyond their 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: In legal accounting, accurate documentation is of utmost importance. Neglecting to document transactions, classify expenses appropriately, and maintain up-to-date records can result in severe compliance issues.

Not being aware of applicable laws: Every state has its own set of legal accounting rules and regulations. Attorneys must be familiar with the legislation of the state in which they practice.

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: In legal accounting, even minor errors in data input can result in significant mistakes. Therefore, attorneys must scrutinize every transaction to detect discrepancies.

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

To keep client cash separate from the firm’s finances, law firms and accountants use trust accounting. Settlement monies, court fees, advanced charges, and retainer fees are all examples of these funds. It is vital to correctly manage trust accounts because they prevent the mixing of client and corporate cash. Financial mismanagement and a lack of responsibility can result from improper handling.

At SD Associates, P.C., we understand the importance of trust accounting services. We offer comprehensive solutions to ensure that account activity is handled according to industry best practices. Our team has years of experience providing reliable guidance, and we take great care in recording all transactions.

IOLTA Account Management

An IOLTA (Interest on Lawyers’ Trust Accounts) account is a unique financial tool specifically designed for attorneys. They are used to keep trust funds separate from operating funds, allowing attorneys to manage money that is received on behalf of clients.

SD Associates, P.C. provides an all-encompassing range of IOLTA account management solutions for law firms. Our skilled legal accountant in Center City will collaborate with you to ensure that your IOLTA accounts comply with ethical standards. In addition, we offer detailed reports that summarize the transactions within each client’s IOLTA account.

Legal Bookkeeping and Accounting Solutions

SD Associates, P.C. offers complete bookkeeping and accounting solutions to legal firms. Our team of proficient experts has a wealth of experience in financial record-keeping, cash flow projections, report generation, and client payment collection. We recognize that legal organizations have distinct requirements that necessitate specialized care. That’s why we take the time to comprehend each client’s operations and tailor our services to meet their specific needs.

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 Center 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 Center City Today

At SD Associates, P.C., we understand the significance of your law firm’s finances, and we appreciate that they necessitate professional handling. To that end, our experienced Center City legal accountant can offer you comprehensive advice on a wide range of financial matters, including trust accounts, bookkeeping, taxes, and more. To learn about our legal accounting services and book a consultation for your business, call us today at (215) 517-5600.

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

Always Available for Phone Calls

Accessible Via Email or Phone

Wide Client Base

Experienced CPAs with Advanced Degrees