Accountant Trusted by Law Firms Since 1983

CPA Firm Serving PA, NJ, NY, & DE

Legal Accountant in Doylestown

A law firm needs more than a great attorney to succeed – it also needs a reliable and experienced accountant. At SD Associates, P.C., our Doylestown legal accountants have the knowledge and experience to handle all of your financial needs. With over 35 years in business, we are proud to serve clients who require a full-service accounting firm for their law firm’s finances.

We understand the complexities of running a law firm and have tailored our services to meet the unique needs of attorneys, providing them with personalized financial solutions that are both cost-effective and compliant with industry regulations. Whether you need assistance with accounting, tax preparation, budgeting or financial planning, our highly-qualified staff is here to help your business reach its financial goals.

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 can have a detrimental effect on a firm’s financial stability. The absence of precise records makes it arduous to monitor client payments and maintain balanced books, which can result in cash flow problems and incorrectly allocated 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 two different things, but they can be easily confused. Income is the total amount of money coming in, while revenue is the net profit made after expenses have been paid. Misidentifying these two can lead to an inaccurate financial picture and could potentially mean lost income.

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 try to handle their financial management internally, the support of a proficient legal accountant can prove to be indispensable. An accomplished legal accountant in Doylestown can offer expert guidance and ensure the accuracy and compliance of all financial records with relevant laws and regulations.

Trust Accounting

Trust accounting is a practice that involves the managing of funds held on behalf of others by legal professionals such as attorneys, accountants, and other fiduciaries. Settlement monies, court fees, advanced charges, and retainer fees are all examples of these funds. These accounts must be managed in accordance with state and federal regulations, which require regular record-keeping, detailed tracking of transactions, timely reporting of any changes or discrepancies, and periodic audits.

At SD Associates, P.C., our experienced staff is well-versed in trust accounting procedures and the applicable laws governing them. We provide comprehensive trust accounting services for our clients, including detailed record-keeping and financial reporting. Our team is familiar with the requirements of state and federal regulations, ensuring that your trust accounts are managed in compliance with all applicable laws.

IOLTA Account Management

An IOLTA (Interest on Lawyers’ Trust Accounts) account is a trust account established to segregate client payments from the operational finances of a legal practice. An IOLTA account allows a legal practice to manage finances while safeguarding the financial 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 a crucial aspect of daily operations for any business, but it can pose challenges for legal firms due to the multitude of numbers, accounts, and records that are unique to the legal industry. At SD Associates, P.C., we comprehend this intricacy and offer customized bookkeeping solutions for our clients.

Our experienced team of accountants has a wealth of knowledge in the legal field and can compile financial data into useful reports and analyses that will help drive your practice forward. We can also provide you with a comprehensive set of monthly financial statements, giving you insight into the financial health of your business.

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 Doylestown can provide advice and guidance on how GAAP applies to your individual business structure.

Contact Our Legal Accountant in Doylestown Today

SD Associates, P.C., a legal accountant in Doylestown, 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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