Accounting Services Trusted by Top Law Firms

CPA Firm Serving PA, NJ, NY, & DE

Legal Accountant in Chestnut Hill

At SD Associates, P.C, we have a team of skilled accounting professionals who offer full-service legal accounting in Chestnut Hill. 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.

Law firms know they can trust us to provide the highest level of financial management support and guidance. Whether you’re an individual requiring tax help, a corporation with financial statements to file, or a law firm looking for assistance with accounting, SD Associates, P.C is here to help.

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: Attorneys must acquaint themselves with the legal accounting rules and regulations specific to the state in which they practice. Each state has its own set of guidelines that must be adhered to.

Incorrectly identifying income as revenue and vice versa: The phrases ‘income’ and ‘revenue’ are frequently used interchangeably, which causes misunderstanding. When dealing with legal accounting, it is critical for attorneys to know the distinction between these 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: 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

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 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

A financial instrument called IOLTA (Interest on Lawyers’ Trust Accounts) is exclusively created for lawyers. It assists them in separating trust funds from operational funds, enabling them to monitor and handle client funds.

At SD Associates, P.C., we offer comprehensive IOLTA account management services for law firms of all sizes. Our Chestnut Hill legal accountant will work with you to ensure that your IOLTA accounts are properly managed.  We provide comprehensive reports outlining activity within each client’s IOLTA account so that you can have peace of mind.

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 Chestnut Hill 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 Chestnut Hill 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 Chestnut Hill 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.

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