Accountant Trusted by Law Firms Since 1983

CPA Firm Serving PA, NJ, NY, & DE

Legal Accountant in New Hope

In order for a law firm to thrive, having a competent and experienced accountant is just as crucial as having a skilled attorney. At SD Associates, P.C., our legal accountants in New Hope possess the expertise and proficiency to address all your financial requirements. Having been in the business for over 35 years, we take pride in serving clients who demand a comprehensive accounting firm to handle 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: 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: Although income and revenue are distinct, they are often mistaken for one another. Income refers to the total amount of money earned, whereas revenue is the profit obtained after settling expenses. Misinterpreting these terms can lead to an erroneous financial overview and may result in 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: While some law firms may attempt to manage their financial management in-house, the assistance of a professional legal accountant can be invaluable. A qualified New Hope legal accountant can provide expert advice and ensure that all financial records are accurate and compliant with applicable laws.

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. has a team of knowledgeable professionals who are proficient in trust accounting procedures and the governing laws. We offer extensive trust accounting services to our clients, including thorough record-keeping and financial reporting. Our team is well-versed in state and federal regulations, ensuring that your trust accounts are managed in compliance with all relevant 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 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 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 New Hope can provide advice and guidance on how GAAP applies to your individual business structure.

Contact Our Legal Accountant in New Hope Today

SD Associates, P.C., a New Hope 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.

You might also be interested in:

• Business Tax Services New Hope
• General Contractor Accountants New Hope
• Healthcare Accountants New Hope
• Real Estate Accountants New Hope