Foreign investment opportunities in the US appeal to investors across the globe, most commonly in the form of stocks, commercial property, or currency. As a citizen of a country other than the United States, you must be mindful of the tax requirements set by the Internal Revenue Services.

Like any business owner, a real estate lawyer who practices independently may be eligible for certain deductions when filing a tax return.

In an earlier post, I introduced the sole proprietorship as an option for establishing a law practice.

If you’ve decided to structure your practice in such a way that you are the sole owner, your next decision is whether to use cash-basis or double-entry accounting to keep track of your revenue and expenses.

Now that you’ve earned your law degree, it’s time to make one of the most important decisions of your career: Should you go solo and build a new practice from the ground up, partner with a fellow attorney, or secure a position as one of several attorneys at a larger practice?

Financial matters are a major source of contention among clients of real estate lawyers, whether it’s a dispute over property values, damages, or purchase prices.

To better serve your clients, you must be able to argue convincingly on their behalf. One way you can do this is by working with an accounting expert to strengthen your case.

Look for the Right Qualifications

Good: A generalist accountant with several years of professional experience can help explain key accounting and financial concepts in a way that is easily understood by non-accounting professionals, including clients, jurors, witnesses, and other experts involved in the case.

Better: A certified public accountant (CPA) with comparable experience. Why choose a CPA? For one thing, CPA candidates must pass the Uniform Certified Public Accountant Exam, a rigorous examination covering a broad range of accounting and financial topics. A CPA must complete extensive continuing education credits to remain in good standing and must also fulfill strict guidelines set in place by the state in which they practice.

Best: Your best bet is to enlist the services of a CPA who has specialized experience and expertise in an applicable field—in this case, real estate law practices.

Attorneys, including those who specialize in real estate laws, should have a basic understanding of generally accepted accounting principles, or GAAP, to ensure that their clients meet all contractual provisions.

However, it takes more in-depth knowledge and experience to protect lawyers and their practice from problems arising from irresponsible or inaccurate accounting practices in daily operations.

With only a few months remaining in the year, it’s time to take a closer look at how much you’ve earned thus far. Of that, how much have you actually received?

At the office of CPA Ann Irons, a legal accountant in Holliston, MA, we see attorneys scrambling to collect unpaid fees before the end of their yearly accounting period. Unfortunately, this approach can be time-consuming and devastating to the financial health of your firm.

Like your fellow attorneys, you didn’t go to law school to become an accountant. That said, you can see how trying to handle accounting functions can get into the way of your true role of lawyer.

This is especially true in small practices that have limited human resources and a tight budget. Hiring a CPA for legal accounting services saves time and stress, allowing you to focus on your clients.

If you are a resident or non-resident alien earning income in the United States, you can expect to pay taxes to the IRS.

Depending on your status, you may not be able to use the same requirements and forms as someone who is a US citizen.

In an earlier post, Ann Irons explained how real estate lawyers can improve financial management through use of budgets, accounts receivables policy, and cash flow analysis. Irons, a CPA in Bellingham, MA, goes on to outline the benefits of internal controls and how they impact the financial health of your practice.