CPA Firm Serving PA, NJ, NY, & DE

Legal Accountant in King of Prussia

Legal firms require a broad spectrum of accounting and financial services, ranging from tax preparation to estate planning, necessitating the assistance of experts who can navigate the complexities of their cases. Our King of Prussia legal accountant at SD Associates, P.C. has extensive experience in the legal field and offers unparalleled service.

Common Legal Accounting Mistakes

Mishandling trust accounts: Trust accounts are frequently established by law firms to separate funds designated for clients. Nevertheless, many law firms do not implement suitable procedures when establishing and managing these accounts.

Failing to keep accurate records: Meticulous record-keeping is essential for legal accounting. Firms must monitor accounts receivable, accounts payable, and clients’ trust funds. Inaccurate records can lead to missed filing deadlines or other costly errors.

Not being aware of applicable laws: As legal accounting laws and regulations differ from state to state, comprehending the specific requirements of your state is crucial. Noncompliance with these rules can result in expensive 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 mistakes can have a considerable impact on the precision of financial records. That’s why it’s essential to verify all entries and ensure the accuracy of all data entered.

Avoiding professional assistance: It’s important to work with experienced professionals for guidance and assistance. We can help provide the expertise needed to ensure that your finances are managed accurately.

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 King of Prussia, 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 additionally supplies periodic reconciliation reports to allow attorneys to easily monitor their IOLTA accounts and adhere to trust account management guidelines. We aim to instill confidence in all involved parties that the funds are being appropriately and effectively managed. Allow SD Associates, P.C.’s accomplished legal accounting team to handle your IOLTA account transactions, freeing you up to concentrate on delivering exceptional legal services to your clients.

Legal Bookkeeping Solutions

Accurate records are essential for any business. At SD Associates, P.C., our experienced professionals provide reliable and comprehensive bookkeeping services to help you maintain organized records of your financial transactions. Our team of CPAs and accountants is well-versed in all aspects of legal financial management, so you can rest assured that your accounting needs are taken care of.

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 King of Prussia Today

In case you need assistance with your law firm’s legal structure, tax matters, or audit procedures, reach out to our King of Prussia 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