At Kawatra CPA, we understand that running a law firm comes with unique financial complexities. From managing client trust accounts to handling partner distributions and ensuring regulatory compliance, your accounting needs require precision, discretion, and legal-industry expertise. Our firm specializes in providing comprehensive accounting and advisory services for law firms in Nashville and beyond, supporting solo attorneys, mid-sized practices, and multi-partner firms alike.
Why Law Firms Need Industry-Specific Accounting Support
Legal professionals are held to a high standard—not only by their clients but also by regulatory bodies like the American Bar Association (ABA) and state bar associations. Failure to maintain proper accounting can lead to compliance violations, malpractice risks, and even license suspension.
Here are just a few of the accounting challenges law firms face:
- Managing IOLTA trust accounts and maintaining audit-ready records
- Tracking billable hours and aligning them with revenue recognition
- Handling payroll and 1099 reporting for partners, associates, and support staff
- Revenue allocation and partner distribution based on firm structure
- Preparing for audits from regulators and tax authorities
- Ensuring data security for sensitive financial and client information
At Kawatra CPA, we take these responsibilities seriously. We serve as a financial partner to law firms, allowing attorneys to focus on practicing law while we manage the numbers.
Specialized Accounting Services for Law Firms
Our full-service CPA firm offers a suite of solutions tailored specifically to legal practices. Whether you’re starting a new firm or managing a growing practice, we help ensure accuracy, compliance, and profitability.
Trust Accounting & Compliance
Trust accounting is one of the most heavily regulated areas in legal finance. We provide:
- IOLTA account reconciliation
- Monthly trust ledgers and audits
- Three-way reconciliation of trust accounts (required in many jurisdictions)
- Audit preparation for bar association or state compliance reviews
We ensure that your firm maintains full separation of client funds and operating capital, helping you meet the strictest compliance standards.
Tax Planning and Preparation
We provide proactive tax planning strategies that minimize tax liabilities while staying compliant with IRS and state tax codes. Our team understands the nuances of law firm taxation, including:
- Pass-through entity structures (LLPs, PLLCs, S-Corps)
- Partner distributions vs. W-2 income
- Deductible business expenses for attorneys
- Quarterly estimated payments
- Multi-state filings for firms practicing in multiple jurisdictions
At tax time, we handle all federal and state filings and offer IRS representation if needed.
Bookkeeping and Financial Reporting
Accurate bookkeeping is essential to making informed decisions and running a profitable practice. Our bookkeeping services for law firms include:
- Daily or weekly reconciliations
- Categorization of income and expenses
- Accounts receivable and payable tracking
- Monthly financial statements (P&L, balance sheet, cash flow)
- Custom reports tailored to your firm’s practice areas and goals
We work with your existing time and billing software—such as Clio, MyCase, or PracticePanther—and integrate your financial data for easy reporting.
Payroll and Partner Compensation
We simplify payroll processing for attorneys, staff, and contractors with:
- W-2 and 1099 payroll services
- Partner compensation management
- Profit-sharing models and bonus structures
- Retirement contributions and benefits tracking
Whether you use ADP, Gusto, or another provider, we help align payroll with your accounting system and ensure compliance with tax regulations.
Additional Services for Legal Professionals
We offer more than just basic accounting. Kawatra CPA also supports law firms with:
Business Advisory and Entity Structuring
Starting a new firm or bringing in new partners? We advise on legal entity selection, equity distribution models, and succession planning.
Financial Forecasting and Budgeting
Our advisory services help you set realistic growth goals, model partner buy-ins/buy-outs, and improve profitability.
IRS and State Audit Support
We represent law firms during tax audits and offer audit protection services, ensuring you have a knowledgeable advocate in your corner.
Technology Integration
We help legal professionals select and implement accounting software that integrates with their case management tools, reducing manual data entry and improving efficiency.
Why Choose Kawatra CPA for Your Law Firm?
With over two decades of experience, Sunil Kawatra, CPA, leads a team of professionals who take pride in delivering accurate, timely, and strategic accounting services. Our clients in the legal profession appreciate our:
- Deep knowledge of legal accounting regulations
- Hands-on, responsive client service
- Flat-fee or retainer-based options for predictable billing
- Secure client portal for document uploads and file sharing
- Commitment to discretion and confidentiality
Whether you’re a sole practitioner or a multi-location law firm, we tailor our approach to fit your firm’s specific needs, practice areas, and growth objectives.
Let’s Talk: Schedule a Free Consultation Today
Ready to streamline your accounting and free up more time to focus on your legal practice? Kawatra CPA is your trusted financial partner for long-term success.
Visit us at: 2200 21st Ave S, Suite 403, Nashville, TN
Call: (615) 329-9400
Email: kawatracpa@gmail.com
Learn more: www.kawatracpa.com