Patents and trademarks can protect new ideas that entrepreneurs create. When an innovator wants to make sure their idea is protected, they will usually seek the assistance and guidance of an intellectual property attorney. If you’re practicing law in this specialized area, you know the importance of having strong, lasting relationships with your clients and staying abreast of their needs in this regard. But, your commitment to building relationships takes time which may compromise your efficiency in the area of accounting and your business finances.
Getting the help of a CPA that understands the importance of intellectual property law and client relationships can greatly benefit the accounting side of your business. After all, remaining tax compliant and implementing GAAP guidelines are important aspects of any business.
Intellectual property accounting
If you’re getting paid for services rendered or making business-related payments, then your law firm would be required to file taxes. The IRS has specific requirements when it comes to reporting income, and understanding the rules that apply to deductions and income declarations is crucial to submitting an accurate tax return.
Ensuring the accuracy of your internal bookkeeping is not only beneficial for this purpose, but intellectual property accounting can also provide you with a highly detailed and organized view of the financial state of your business. Proper accounting can help you get insights into your law firm’s spending habits and income. Within your accounting software, you can also have access to comprehensive financial reports, which can be crucial to have when you want to determine the financial health of your practice.
Making taxes painless
It’s never fun to give a share of your hard-earned profits to the Internal Revenue Service. Unfortunately, as an intellectual property firm in the United States, this is part of your deal with the government when operating your business. Luckily, you can make your taxes more manageable by starting your tax planning early. There are a number of tax deadlines to keep close by as you plan your tax year with your CPA.
Knowing which tax forms are due by your business is a great starting point for this.
Creating a solid financial strategy for the future
If you are planning to make significant organizational changes, your accounting financial advisers can assist you. The role that CPAs who service intellectual property law firm financial advisers play can be instrumental in forging new financial strategies for your firm. Not only do they understand the ins and outs of the tax laws and requirements for your industry, but they also observe the special needs of intellectual property law and the needs of the clients you may service.
At Fusion CPA, our experienced CPAs can help you navigate your restructuring process. We offer high-level CFO advisory services to help determine the best mix of debt and equities to fund your projects and operations. We can also help you identify areas of your law firm that you can capitalize on and areas where you can cut costs. You can learn more about our services by clicking the button below to schedule a complimentary discovery call today!
This blog article is not intended to be the rendering of legal, accounting, tax advice or other professional services. Articles are based on current or proposed tax rules at the time they are written and older posts are not updated for tax rule changes. We expressly disclaim all liability in regard to actions taken or not taken based on the contents of this blog as well as the use or interpretation of this information. Information provided on this website is not all-inclusive and such information should not be relied upon as being all-inclusive.