CPA Firm Serving PA, NJ, NY, & DE

Legal Accountant in West Philadelphia

At SD Associates, P.C, we have a team of skilled accounting professionals who offer full-service legal accounting in West Philadelphia. 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.

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: 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: 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: 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: 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

Trust accounting is a common practice used by law firms to keep client funds separate from the firm’s operating finances. These funds include settlement monies, court fees, advanced charges, and retainer fees. Proper management of trust accounts is crucial to avoid commingling of client and corporate cash. Mishandling of funds can lead to financial mismanagement and a lack of accountability.

At SD Associates, P.C., we understand the significance of trust accounting services. We provide all-encompassing solutions to guarantee that all operations adhere to the industry’s best practices. Our legal accountants have extensive experience providing dependable guidance to our clients, and we take meticulous care in monitoring all transactions.

IOLTA Account Management

The IOLTA is an account created exclusively for lawyers, serving as a financial instrument. Its primary purpose is to separate trust funds from operating funds, providing the means to manage client funds obtained on their behalf.

SD Associates, P.C. provides an all-encompassing range of IOLTA account management solutions for law firms. Our skilled legal accountant in West Philadelphia will collaborate with you to ensure that your IOLTA accounts comply with ethical standards. In addition, we offer detailed reports that summarize the transactions within 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 West 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 West Philadelphia Today

Your law firm’s finances are important and deserve professional attention. At SD Associates, P.C., our experienced West 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.

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