CPA Firm Serving PA, NJ, NY, & DE

Legal Accountant in Northern Liberties

At SD Associates, P.C, we have a team of skilled accounting professionals who offer full-service legal accounting in Northern Liberties. Our firm is dedicated to providing services that cater to your unique needs and preferences. We specialize in various areas, such as tax planning and preparation, financial statements, and consultation services. Our commitment to quality service ensures that we exceed our clients’ expectations.

Law firms know they can trust us to provide the highest level of financial management support and guidance. Whether you’re an individual requiring tax help, a corporation with financial statements to file, or a law firm looking for assistance with accounting, SD Associates, P.C is here to help.

Common Legal Accounting Mistakes

Mishandling trust accounts: Trust accounts are an important aspect of legal accounting. Mismanagement or misuse of trust accounts can result in substantial penalties.

Failing to keep detailed records: In legal accounting, accurate documentation is of utmost importance. Neglecting to document transactions, classify expenses appropriately, and maintain up-to-date records can result in severe compliance issues.

Not being aware of applicable laws: Every state has its own set of legal accounting rules and regulations. Attorneys must be familiar with the legislation of the state in which they practice.

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: In legal accounting, even minor errors in data input can result in significant mistakes. Therefore, attorneys must scrutinize every transaction to detect discrepancies.

Avoiding professional assistance: Experienced accountants can provide invaluable insights in the field of legal accounting. Attorneys who fail to seek professional help when required may find themselves in a difficult situation, as they may be unaware of essential rules or regulations that could have been avoided with proper guidance.

Trust Accounting

To keep client cash separate from the firm’s finances, law firms and accountants use trust accounting. Settlement monies, court fees, advanced charges, and retainer fees are all examples of these funds. It is vital to correctly manage trust accounts because they prevent the mixing of client and corporate cash. Financial mismanagement and a lack of responsibility can result from improper handling.

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

An IOLTA (Interest on Lawyers’ Trust Accounts) account is a unique financial tool specifically designed for attorneys. They are used to keep trust funds separate from operating funds, allowing attorneys to manage money that is received on behalf of clients.

At SD Associates, P.C., we offer comprehensive IOLTA account management services for law firms of all sizes. Our Northern Liberties 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. takes pride in offering a complete suite of accounting and bookkeeping services tailored for law firms. Our seasoned professionals possess a wealth of expertise in maintaining financial records, predicting cash flows, generating reports, and collecting client payments. As a team, we recognize that legal entities require individualized attention. We prioritize taking the necessary time to comprehend the nuances of each client’s business.

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 Northern Liberties 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 Northern Liberties Today

At SD Associates, P.C., we understand the significance of your law firm’s finances and the requirement for expert handling. Our skilled legal accountant in Northern Liberties can provide extensive support and recommendations for the management of your trust accounts, taxes, bookkeeping, and other accounting needs. Please call us at (215) 517-5600 to schedule a consultation and learn more about our legal accounting services.

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

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Wide Client Base

Experienced CPAs with Advanced Degrees