Accountant Trusted by Law Firms Since 1983

CPA Firm Serving PA, NJ, NY, & DE

Legal Accountant in Furlong

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 Furlong 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.

Our services are customized to meet the specific requirements of attorneys who face the intricacies of managing a law firm. We comprehend the challenges of this industry and offer tailored financial solutions that are both economical and compliant with industry standards. Our adept team provides support in accounting, tax preparation, budgeting, and financial planning to assist your business in achieving its financial objectives.

Common Legal Accounting Mistakes

Mishandling trust accounts: Law firms often use trust accounts to store client funds, and it is crucial to manage them accurately. Mishandling trust accounts can result in severe financial repercussions for the firm, including penalties and possible 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: The laws and regulations pertaining to financial management of law firms can differ from one state to another. Ignorance of the relevant laws and regulations can negatively impact a firm’s finances, resulting in expensive 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 choose to handle their financial management in-house, seeking the help of a professional legal accountant can prove to be invaluable. A competent legal accountant in Furlong can offer expert guidance and ensure the accuracy of all financial records while ensuring compliance with relevant laws and regulations.

Trust Accounting

Trust accounting is the management of funds held by legal professionals, including attorneys, accountants, and other fiduciaries, on behalf of others. These funds may include settlement monies, court fees, advanced charges, and retainer fees. To comply with state and federal regulations, these accounts must be managed with regular record-keeping, precise transaction tracking, prompt reporting of changes or inconsistencies, 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 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.

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 an integral part of the day-to-day operations for any business, but it can be particularly tricky for legal firms. There are many numbers, accounts and records to keep track of that are unique to the legal industry. At SD Associates, P.C., we understand this complexity and provide tailored bookkeeping solutions for our clients.

Our team of experienced accountants possesses extensive knowledge in the legal industry and can consolidate financial data into practical reports and analyses that will facilitate the growth of your practice. Additionally, we offer a comprehensive set of monthly financial statements that provide you with a deep understanding of your business’s financial well-being.

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

Contact Our Legal Accountant in Furlong Today

SD Associates, P.C., a Furlong 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.

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