CPA Firm Serving PA, NJ, NY, & DE

Legal Accountant in Feasterville

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 Feasterville 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.

We recognize the intricacies involved in managing a law firm and have customized our offerings to fulfill the distinct requirements of lawyers. We offer individualized financial solutions that are both affordable and compliant with industry standards. Our well-trained personnel can assist you with accounting, tax preparation, budgeting, or financial planning, enabling your company to achieve its financial objectives.

Common Legal Accounting Mistakes

Mishandling trust accounts: Trust accounts are a standard practice in law firms where client funds are held and must be handled with precision. Inaccurate management of trust accounts can result in severe financial ramifications for the firm, such as penalties and possible legal proceedings 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: Laws that apply to law firm financial management can vary from state to state. Failing to understand applicable laws and regulations can have a damaging effect on the firm’s finances, leading to costly 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: Data entry errors are among the most frequent accounting blunders. Even a solitary erroneous figure can disrupt the balance sheet of a firm, resulting in wasted time and money. Additionally, it can lead to possible legal complications.

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 Feasterville can offer expert guidance and ensure the accuracy and compliance of all financial records 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 dedicated trust account that segregates client payments from the operational finances of a legal practice. By utilizing an IOLTA, a legal practice can manage finances while safeguarding the interests of its clients.

SD Associates, P.C. acknowledges the significance of precise and efficient management of IOLTA accounts. This is why our accomplished team possesses vast experience and knowledge in managing trust accounts for legal professionals. We have a comprehensive understanding of the governing regulations for such accounts, as well as the essential procedures to ensure full compliance with those regulations.

Legal Bookkeeping Solutions

Bookkeeping is a vital aspect of daily operations for any business, but it can be especially challenging for legal firms due to the unique accounts, numbers, and records involved. SD Associates, P.C. recognizes this complexity and offers customized bookkeeping solutions for our clients in the legal industry.

Our accomplished team of accountants possesses a vast amount of expertise in the legal arena and can consolidate financial data into useful reports and analyses that will propel your practice forward. We can also furnish you with a comprehensive suite of monthly financial statements, providing you with a clear understanding of the financial condition 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 Feasterville can provide advice and guidance on how GAAP applies to your individual business structure.

Contact Our Legal Accountant in Feasterville Today

SD Associates, P.C., a Feasterville legal accountant, is here to help you navigate the complexities of financial management and taxation. Whether you’re facing an audit or just want to ensure your business structure is optimized for efficiency and profitability, contact us today at (215) 517-5600 to get started. Our experienced team is committed to delivering customized solutions tailored to your law firm.

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.

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Over 35 Years in Business

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Experienced CPAs with Advanced Degrees