Law Firm Accounting & Taxes

Many lawyers ignore their law firm accounting and taxes until they're forced to pay attention. Don't wait until you're forced to pay attention.

Law firm accounting and taxes are bone-dry topics that many lawyers choose to ignore until they’re forced to pay attention. Don’t wait until you’re forced to pay attention. We aren’t going to give you a detailed rundown of all your tax and accounting issues (you’re going to hire an excellent CPA for that), but we want to encourage you, as ever, to have curiosity and willingness to learn about your tax obligations and accounting practices. For some small law firms with no assets or significant costs of services sold, you might be able to prepare your taxes with a tax software program like TurboTax. But most law firms need a tax preparer, and most would benefit from the specialized advice and counsel that a certified public accountant offers. Your tax planning will depend on your entity type, the number of owners, how you finance your operations, where you practice, and a host of other variables. There are tax implications for how you hire (and fire), how you pay yourself and your partners (if you have them), what equipment you buy (and when), and how you save for rainy days. You can get started by readingĀ “Year-End Tax Planning for Lawyers”, and you can learn a bit more below, too.