CPA Firm Serving PA, NJ, NY, & DE

Legal Accountant in Rittenhouse Square

At SD Associates, P.C, our skilled team of accounting professionals offers a range of full-service legal accounting in Rittenhouse Square. 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-tier financial management support and guidance to law firms. Our services cater to individuals seeking tax assistance, corporations filing financial statements, and law firms seeking accounting support. We collaborate closely with our clients to ensure their finances are managed optimally, with an emphasis on efficiency and cost-effectiveness.

Common Legal Accounting Mistakes

Mishandling trust accounts: Managing trust accounts is a crucial component of legal accounting. Improper use of trust accounts can result in significant 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: 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: The phrases ‘income’ and ‘revenue’ are frequently used interchangeably, which causes misunderstanding. When dealing with legal accounting, it is critical for attorneys to know the distinction between these 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: In the intricate area of legal accounting, experienced legal accountants may give vital insight. Attorneys who neglect to seek assistance may be penalized because they are unaware of critical rules or regulations.

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.

At SD Associates, P.C., we understand the importance of trust accounting services. We offer comprehensive solutions to ensure that account activity is handled according to industry best practices. Our team has years of experience providing reliable guidance, and we take great care in recording 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.

SD Associates, P.C. provides full IOLTA account management services to law firms of various sizes in Rittenhouse Square. Our Rittenhouse Square legal accountants can assist you in establishing, overseeing, and managing your IOLTA accounts. We adhere to the highest ethical standards, and our comprehensive reports detail the activities in each client’s IOLTA account.

Legal Bookkeeping and Accounting Solutions

SD Associates, P.C. is proud to provide comprehensive legal bookkeeping and accounting services for law firms. Our team has extensive experience in managing financial records, forecasting cash flows, preparing reports, and collecting payments. We understand that legal entities have unique needs that require specialized attention. That’s why we take the time to understand 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 Rittenhouse Square 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 Rittenhouse Square 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 Rittenhouse Square 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.

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Over 35 Years in Business

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Experienced CPAs with Advanced Degrees