Accounting Services Trusted by Top Law Firms

CPA Firm Serving PA, NJ, NY, & DE

Legal Accountant in Roxborough

At SD Associates, P.C, we have a team of skilled accounting professionals who offer full-service legal accounting in Roxborough. 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: 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: In legal accounting, maintaining proper documentation is imperative. Neglecting to document transactions, accurately categorize expenses, and maintain current records can result in substantial 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: 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.

SD Associates, P.C. provides full IOLTA account management services to law firms of various sizes in Roxborough. Our Roxborough 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. 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 Roxborough 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 Roxborough 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 Roxborough 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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