Bookkeeping and Accounting for Tax Law Firms

Tax attorneys help clients through audits, collections, offers in compromise, and tax controversy, and their clients expect their attorney’s own books to be beyond reproach. Tax practices also see sharp seasonal swings and often coordinate closely with outside CPAs and enrolled agents. A&W Associates provides bookkeeping for tax law firms that is accurate, well documented, and built for a practice that holds itself to a high standard.

Retainers for Controversy and Resolution Work

IRS and state tax resolution matters often begin with a retainer. We track retainers by client, record draws as work is performed, and make sure unearned funds remain properly held in trust.

Trust Account Compliance

We perform monthly three-way reconciliation of your IOLTA and trust accounts, comparing the bank statement, the trust ledger, and every client ledger.

Seasonal Cash Flow Planning

Deadlines and filing seasons can concentrate revenue into certain months. We provide monthly financial statements and cash flow reporting so you can plan staffing and expenses year-round.

Hourly Billing and WIP

Tax controversy and planning work is commonly billed hourly. Our WIP accounting shows unbilled time and helps you invoice promptly.

Coordinating With Your CPA

We keep your firm’s books tax-ready and organized, so your own CPA can prepare your firm’s returns efficiently.

What We Handle for Tax Law Firms

Retainer and earned-fee tracking
IOLTA and trust account reconciliation
Hourly billing and WIP reporting
Accounts payable and receivable
Payroll coordination
Monthly financial statements and cash flow reports
Tax-ready books coordinated with your CPA

Why Tax Attorneys Choose A&W Associates

Our team brings over 25 years of accounting experience and specialized training in legal bookkeeping. Contact us today to learn more.

State Tax Systems and the Tax Controversy Practice

A tax attorney’s caseload depends heavily on the state tax system the clients live under, and so does the firm’s own payroll and tax compliance. Here is how those two things differ across four major markets where we support tax firms remotely.

New York: Manhattan and Long Island

New York imposes a state income tax, and New York City residents also pay a city income tax. Residency audits by the New York State Department of Taxation and Finance are a well-known source of controversy work. On the firm’s side, New York payroll requires state and, for city residents, city withholding, which we coordinate with your payroll provider.

Illinois: Chicago

Illinois has a flat individual income tax, and Chicago tax firms handle disputes with both the IRS and the Illinois Department of Revenue. Firms structured as partnerships or S corporations also face the Illinois replacement tax, which we keep in view for your CPA’s planning.

Texas: Houston, Dallas, and Austin

With no personal income tax, much Texas state tax controversy centers on sales and use tax and the franchise tax administered by the Comptroller. Texas firms do not withhold state income tax from paychecks, which simplifies payroll but not the firm’s own franchise tax report.

Florida: Miami, Tampa, and Orlando

Florida also has no personal income tax, so state-level disputes here tend to involve sales and use tax, corporate income tax for C corporations, and residency questions for clients moving from high-tax states. That last group has grown in Miami and Palm Beach, and so have the cross-state engagements that come with it.

Tax Law Firm Bookkeeping Near You

A&W Associates supports tax law firms throughout Florida, Georgia, Alabama, and New Mexico, and works remotely with firms in California, Texas, Illinois, and New York, including Los Angeles, San Francisco, Houston, Dallas, and New York City. See our service area for the cities where we work with law firms, or contact us to ask about your location.

About A&W Associates

A&W Associates was founded by Angela Weicht, who brings over 25 years of financial and accounting experience, beginning in banking as a risk control specialist and fraud control analyst and continuing as an office manager and accounting manager for private businesses. The firm holds Certified Public Bookkeeper and QuickBooks ProAdvisor credentials and specializes in bookkeeping for law firms and nonprofits.