CPA Firm Serving PA, NJ, NY, & DE

Legal Accountant in Fort Washington

Law firms have a wide range of accounting and financial needs. From tax preparation to estate planning, they need experts who can handle the complexity of their cases. Our Fort Washington legal accountant at SD Associates, P.C. has extensive experience in the legal field, offering you the best service available. Our services range from bookkeeping, tax preparation, IOLTA account management, and more.

Common Legal Accounting Mistakes

Mishandling trust accounts: Trust accounts are established with an intention to separate funds meant for clients. However, many law firms fail to implement appropriate processes in setting up and handling such accounts.

Failing to keep accurate records: Legal accounting requires meticulous record keeping in order to properly track accounts receivable, accounts payable and clients’ trust funds. Without accurate records it can be easy to miss filing deadlines or make other costly mistakes.

Not being aware of applicable laws: Different states have different laws and regulations governing legal accounting, so it’s important to understand the specific requirements of your state. Failing to abide by these rules can lead to costly penalties or litigation.

Incorrectly identifying income as revenue and vice versa: Lawyers often incorrectly classify payments as income or revenue. It’s important to understand the difference between the two and ensure that all payments are correctly classified.

Entering data incorrectly: Manual data entry errors can have a significant impact on the accuracy of financial records. It’s important to double check all entries and ensure that all data is entered correctly.

Avoiding professional assistance: It is essential to collaborate with experienced professionals like SD Associates for guidance. They can provide the expertise necessary to accurately monitor your finances.

Trust Accounting

Trust accounting is a practice that attorneys, accountants, and other fiduciaries use to manage client funds. Trusts may be set up to manage a variety of assets, including cash, securities and real estate. SD Associates P.C., a legal accountant in Fort Washington, understands the complexities of trust accounting and provides clients with reliable trust administration services that promote accurate record keeping and financial stability.

Our professionals can assist you in developing an efficient plan for administering your trusts while keeping abreast of the latest regulations and laws. We guarantee the accurate accounting, responsible management, and precise reporting of all client funds. With our trust accounting services, you can be confident that your clients’ funds are secure and effectively managed.

IOLTA Account Management

An IOLTA (Interest on Lawyers’ Trust Accounts) account is designed to keep client funds separate from the attorney’s personal funds. Our legal accounting experts at SD Associates, P.C. recognize the intricacy of IOLTA accounts and provide thorough management services for such accounts. We guarantee that all IOLTA account transactions are correctly documented in compliance with state regulations.

Our team also provides regular reconciliation reports so that attorneys can easily monitor their IOLTA accounts and stay in compliance with trust account management rules. We strive to make sure all parties involved feel secure that the funds are being managed correctly and efficiently. Let SD Associates, P.C.’s experienced legal accounting team handle your IOLTA account transactions so you can focus on providing quality legal services to your clients.

Legal Bookkeeping Solutions

Accurate record-keeping is crucial for any business. At SD Associates, P.C., our seasoned professionals furnish dependable and comprehensive bookkeeping services to assist you in maintaining well-organized records of your financial transactions. Our team of CPAs and accountants possess extensive proficiency in all facets of legal financial management, ensuring that your accounting requirements are adequately addressed.

We offer an extensive range of bookkeeping services, including the creation of precise financial statements and reports, the tracking of receivables and payables, budget development, payroll management, and more. We recognize the significance of maintaining current records for your business’s financial well-being. As a result, our competent staff is committed to ensuring accuracy and efficiency in all of our bookkeeping solutions.

Legal Accounting FAQs

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

Yes. The type of legal structure of your law firm (i.e., sole proprietorship, partnership, limited liability company, etc.) can significantly impact the way you and your business are taxed by the Internal Revenue Service (IRS). It is important to make sure that your legal structure is set up properly to ensure compliance with all applicable IRS regulations. SD Associates, P.C. has extensive experience in helping law firms with their legal structure and navigating the complexities of tax law.

What should I do if I am being audited?

Preparation is key if you are being audited. An audit can be a stressful experience, so it is important to have the right professionals on your side. SD Associates, P.C. specializes in assisting law firms through the audit process and has a team of experienced attorneys and accountants who will help you navigate the audit with ease and confidence. We understand that the audit process can be complex and intimidating, so we will take the time to explain each step of the process to you.

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 recommended, especially if the law firm will be seeking financing or investment. SD Associates, P.C. is experienced in helping law firms adhere to and understand GAAP standards, as well as providing them with complete financial reporting services to ensure compliance.

Contact Our Legal Accountant in Fort Washington Today

In case you need assistance with your law firm’s legal structure, tax matters, or audit procedures, reach out to our Fort Washington legal accountant at SD Associates, P.C. We are well-versed in the intricacies of tax regulations and offer a wide range of accounting services. To begin, simply dial (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