Law Firm Accounting
Frequently Asked Questions


What types of services do you offer Law Firms?

At Polaris Tax & Accounting we understand the challenges involved in running a Law Firm and have designed our services around your own unique needs. Our services include

  • Law Firm Accounting using cloud accounting technology
  • Trust Accounting
  • Individual and Corporate Tax Preparation
  • Proactive year-round Tax Planning
  • Advisory and CFO Services

What makes your approach to Accounting and Tax different from other firms?

We just don’t focus on compliance work by maintaining your accounting records and filing your Firm’s tax returns, we strive to become your Firm’s Trusted Advisors. We focus on identifying planning opportunities and tax reduction strategies before tax season by taking a truly Proactive approach to your finances in order to become an integral part of your team.

Do you work with small or solo Law Firms?

Just because you own a small or solo law firm does not mean you don’t face unique accounting and tax challenges like larger firms. We work with firms of all sizes, providing virtual accounting, tax, and advisory services.

Can you assist with both Operating and IOLTA (Trust) Accounting?

We understand that your time is one of the most important assets in your firm therefore, our accounting services are designed to minimize your need to handle time-consuming accounting and conciliation tasks. We handle all of the reconciliation and coding of business transactions flowing throughout your Operating Accounts. We also assist in the reconciliation and implementation of best practice processes of your Trust Account using a specialized Trust Accounting Software designed specifically for Law Firms.

What is a Virtual Accounting Firm?

Our Firm is completely virtual, and we work with Law Firms across the United States. Without expensive brick and mortar offices, we can reduce overhead costs, create a better work-life balance for our employees and, provide a more efficient process for our clients. Click here to learn more about the benefits of working with a Virtual Accounting Firm.

If I get audited by the IRS can you represent me?

We can represent both you and your Law Firm before all administrative levels of the Internal Revenue Service for audits, collections, and appeals.

What are the benefits of working with an Accountant vs. managing my own Accounting and Tax?

Accounting and Tax compliance and understanding the story behind your financials are all important aspects of running an efficient and successful Law Firm. While DIY Accounting and Tax Software might appear to be “easy” to use, without a deep understanding of Accounting and Taxation for Law Firms, you could be making costly mistakes that could result in penalties and fines. Click here to learn more about the benefits of working with an Accountant.

I just started a new Law Firm, do I really need to work with an Accounting Firm?

Starting a new Law firm can be challenging, budgets might be tight therefore, you might be tempted to handle your own accounting and taxes during your startup phase. Accounting and Tax errors during this startup phase can be costly, therefore you should contact an accounting firm that understands the challenges unique to your industry. We can help you evaluate the organization of your company for tax purposes as well as numerous other issues related to the operations of your business. Without this critical advice, you could be making decisions that could result in fines, penalties, and higher tax liabilities.

What is your pricing structure, do you charge by the hour?

Most of our engagements are based on a flat monthly fee. Our Service Packages are built around the various stages of your business, from Startup to Mature, our pricing model is customized to your unique needs and business situation. During our initial discovery meeting, we review your needs and provide you with a proposal that is customized to you.

What accounting system do you use?

As a busy attorney, you need the ability to have access to your firm’s financial information any time, anywhere and from any device. Therefore, we implement either Xero or QuickBooks Online to manage your firm’s accounting records.

What accounting system do you use?

We primarily use two systems: Xero and QuickBooks Online.