Accounting Services Trusted by Top Law Firms

CPA Firm Serving PA, NJ, NY, & DE

Legal Accountant in North Philadelphia

At SD Associates, P.C, our skilled team of accounting professionals offers a range of full-service legal accounting in North Philadelphia. Our services cater to your unique needs and specifications. We offer tax planning and preparation, financial statements, consulting, and more, all delivered with a commitment to excellence.

SD Associates, P.C is a trusted provider of top-notch financial management support and guidance to law firms. Our expertise extends to individuals in need of tax assistance, corporations requiring financial statement filing, and law firms seeking accounting assistance. You can rely on our unwavering commitment to delivering the highest level of service.

Common Legal Accounting Mistakes

Mishandling trust accounts: The management of trust accounts is a critical component of legal accounting. Failure to do so can lead to significant consequences, including heavy fines.

Failing to keep detailed records: Proper documentation is essential in legal accounting. Failing to document transactions, properly classify expenses, and keep current records can lead to penalties or litigation.

Not being aware of applicable laws: Legal accounting rules and regulations vary by state. Attorneys must acquaint themselves with the legislation of the state in which they practice. Failure to do so may lead to a breach of regulations associated with the practice of law.

Incorrectly identifying income as revenue and vice versa: In accounting, the terms “income” and “revenue” are often used interchangeably, leading to confusion. However, in legal accounting, it is crucial for attorneys to understand the difference between these two concepts.

Entering data incorrectly: Even minor errors in data input can have significant consequences in legal accounting. Attorneys must exercise utmost care when reviewing transactions to identify any errors.

Avoiding professional assistance: Accountants with expertise in the complex field of legal accounting can provide invaluable guidance. Attorneys who fail to seek expert support may be subject to penalties if they are unaware of critical rules or regulations.

Trust Accounting

Law firms  employ trust accounting to keep client funds separate from the company’s finances. Trust funds may include settlement monies, court fees, advanced charges, and retainer fees. Proper management of trust accounts is crucial as it prevents commingling of client and corporate funds. Negligent handling and financial mismanagement can occur due to improper management.

SD Associates, P.C. recognizes the significance of trust accounting services. We provide all-encompassing solutions to guarantee that activities are managed in accordance with industry standards. Our team has extensive experience providing dependable advice, and we meticulously document all transactions.

IOLTA Account Management

A financial instrument called IOLTA (Interest on Lawyers’ Trust Accounts) is exclusively created for lawyers. It assists them in separating trust funds from operational funds, enabling them to monitor and handle client funds.

At SD Associates, P.C., we offer comprehensive IOLTA account management services for law firms of all sizes. Our North Philadelphia legal accountant will work with you to ensure that your IOLTA accounts are properly managed.  We provide comprehensive reports outlining activity within each client’s IOLTA account so that you can have peace of mind.

Legal Bookkeeping and Accounting Solutions

SD Associates, P.C. offers complete bookkeeping and accounting solutions to legal firms. Our team of proficient experts has a wealth of experience in financial record-keeping, cash flow projections, report generation, and client payment collection. We recognize that legal organizations have distinct requirements that necessitate specialized care. That’s why we take the time to comprehend each client’s operations and tailor our services to meet their specific needs.

Legal Accounting FAQs

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

Depending on the legal structure of your law firm, there may be different tax requirements. For example, a partnership, limited partnership or LLC may be subject to different tax requirements than a sole proprietorship. Our North Philadelphia legal accountant can help you understand how your firm’s legal structure affects your taxes and provide advice on the most beneficial taxation options for your specific situation.

 

What should I do if I am being audited?

If you are being audited, it is important to seek professional advice from a qualified legal accountant. We can provide comprehensive assistance with resolving tax compliance issues, including an audit. We have extensive experience in dealing with IRS and state agencies and can help ensure that the process goes as smoothly as possible.

 

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 generally recommended in order to maintain accurate and consistent financial information. Our team at SD Associates, P.C., can provide guidance on how to apply GAAP principles to your law firm’s accounting system.

Contact Our Legal Accountant in North Philadelphia Today

At SD Associates, P.C., we understand the significance of your law firm’s finances, and we appreciate that they necessitate professional handling. To that end, our experienced North Philadelphia legal accountant can offer you comprehensive advice on a wide range of financial matters, including trust accounts, bookkeeping, taxes, and more. To learn about our legal accounting services and book a consultation for your business, call us today at (215) 517-5600.

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