Accounting Services Trusted by Top Law Firms

CPA Firm Serving PA, NJ, NY, & DE

Legal Accountant in South Philadelphia

SD Associates, P.C is a full-service legal accountant in South Philadelphia with an experienced team of accounting professionals. Our firm provides comprehensive accounting services that are tailored to your needs. From tax planning to financial statements and consulting services, we provide our clients with quality service that goes above and beyond their expectations.

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: Attorneys must acquaint themselves with the legal accounting rules and regulations specific to the state in which they practice. Each state has its own set of guidelines that must be adhered to.

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: When it comes to legal accounting, even minor data input errors might lead to major blunders. Attorneys must pay close attention to all transactions to ensure that any mistakes are identified as soon as possible.

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

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 South 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. 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 South 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 South Philadelphia Today

Your law firm’s finances are important and deserve professional attention. At SD Associates, P.C., our experienced South Philadelphia legal accountant can provide comprehensive guidance on managing your trust accounts, bookkeeping, taxes, and more. Contact us today at (215) 517-5600 to learn more about our legal accounting services and schedule a consultation for your business.

You might also be interested in:

• Business Tax Services South Philadelphia
• Construction Accountants South Philadelphia
• General Contractor Accountants South Philadelphia
• Healthcare Accountants South Philadelphia
• Real Estate Accountants South Philadelphia