Accounting & Tax Services for Law Firms
Lawyers are trained to handle legal complexity, but the financial side of running a law practice brings its own set of challenges. Trust accounting, partner compensation, cash flow management, and tax planning all require careful attention — and mistakes in any of these areas can lead to compliance issues or leave money on the table. At Steele Martin Jones, we work with law firms across West Tennessee, from solo practitioners to multi-partner firms. We understand the unique financial requirements of legal practice and provide the kind of hands-on support that lets you focus on your clients instead of your books.
Financial Challenges We Help You Solve
We understand the unique financial hurdles facing law firms. Here's what we help our clients navigate:
Trust Accounting (IOLTA Compliance)
Maintaining strict separation of client funds from operating funds, detailed recordkeeping, and regular reconciliation to comply with IOLTA rules. Errors can lead to bar complaints.
Partner Compensation and Distributions
Fairly dividing income, managing estimated tax payments, capital accounts, and draws vs. distributions, especially with varying ownership percentages or contributions.
Cash Flow and Billing
Managing uneven cash flow from contingency fees and aging accounts receivable from hourly billing.
Tax Planning for Attorneys
Optimizing entity structure and tax strategy (e.g., LLC vs. S-Corp, compensation structures) to minimize tax burden.
How Steele Martin Jones Works With Law Firms
We handle trust accounting setup and compliance, help structure partner compensation fairly, manage cash flow around contingency cases and billing cycles, and optimize your tax strategy. Whether you're a solo practitioner or a growing firm, we provide the financial support you need.
Services for Law Firms
Frequently Asked Questions
Ready to Talk?
Let's discuss how we can help your law firms business. Schedule a free consultation with one of our CPAs.