Bookkeeping for San Francisco Law Firms
San Francisco’s legal market is closely tied to technology, venture capital, and the companies they build. Many Bay Area firms focus on intellectual property, corporate and emerging-company work, and employment law, appearing in the San Francisco Superior Court and the federal Northern District of California. Those practices bring their own financial patterns, and A&W Associates provides remote bookkeeping and trust accounting designed for them.
San Francisco Gross Receipts Tax After Proposition M
San Francisco’s 2024 Proposition M reworked the city’s business taxes. Starting with the 2025 tax year, the small business exemption for the Gross Receipts Tax rose to $5 million in San Francisco gross receipts, up from $2.25 million. Professional services fall in their own business activity category, where most receipts are assigned to the city based on where services are received and the rest by payroll. For a firm near the threshold, knowing where its receipts come from matters, so we keep revenue organized by client location for your CPA.
Meeting California’s Trust Account Standards
California’s trust account standards are specific about records. Each client needs a written ledger showing every receipt and disbursement with its date, amount, source or payee, and purpose. Each trust account needs its own journal, and securities or other property held for clients need a separate written journal. Those records are balanced against the bank statement every month and kept for at least five years after distribution. We maintain each of those records and complete the monthly balancing for you.
CTAPP Each Renewal Season
During annual license renewal, California attorneys register their trust accounts with the State Bar, complete a trust accounting self-assessment, and certify that they comply with Rule 1.15. Registration is based on each account’s cleared balance as of December 31. Monthly reconciliations throughout the year make that year-end figure easy to confirm.
Billing Models for Bay Area Practices
Firms that advise startups often combine hourly billing with flat-fee packages and, in some cases, fee deferrals until a client closes a financing. Deferred and unbilled amounts can add up quickly, so we track work in progress, deferred fees, and receivables by client and give partners a clear monthly picture.
Practice Areas We Support in San Francisco
- Intellectual property practices handling patent and trademark prosecution and litigation
- Business and corporate firms serving startups and growth companies
- Employment law practices representing employees or employers
- Immigration practices with employer-sponsored work visa clients
- Real estate and solo and small firms across the Bay Area
Working Remotely From Florida
Our team works with San Francisco firms remotely and plans calls and close deadlines around Pacific time. Most of our work runs through cloud-based accounting and your existing practice management system, so there is nothing to install. Contact us to get started, or browse our law firm bookkeeping services by practice area.
This page is provided for general informational purposes and does not constitute legal or tax advice. Attorneys should review the trust accounting rules applicable to their jurisdiction and consult appropriate legal counsel or a CPA when necessary.
