--- title: "Law Firm Accounting: What Every Attorney Should Know About GAAP" description: A basic understanding of generally accepted accounting principles is needed for attorneys to ensure the legality of contracts. image: https://www.ironscpa.com/hs-fs/hub/332864/file-2041670487.jpg --- ![icon-phone](https://www.ironscpa.com/hs-fs/file-469552994-png/images/icon-phone.png)508-533-5700 **Call today to book your appointment!** [![Ann M. Irons](https://www.ironscpa.com/hs-fs/file-480654324-png/images/circle-logo4.png?width=630&height=168&name=circle-logo4.png "Ann M. Irons")](https://www.ironscpa.com/) Hopkinton MA, CPA [Contact](https://www.ironscpa.com/contact-us) [Directions](https://www.google.com/maps/dir//Ann+M.+Irons,+CPA,+17+Main+St+Suite+1,+Hopkinton,+MA+01748/@42.2283595,-71.5220826,17.25z/data=!3m1!5s0x89e470559903948b:0xba338aa31b2a0f29!4m9!4m8!1m0!1m5!1m1!1s0x89e46e7ca0d1d73b:0x531938b62807ebe1!2m2!1d-71.5200665!2d42.2284497!3e0?authuser=0&entry=ttu&g_ep=EgoyMDI1MDExNS4wIKXMDSoASAFQAw%3D%3D) [![facebook](https://www.ironscpa.com/hs-fs/file-811720473-png/images/facebook.png)](https://www.facebook.com/AnnIronsCPA?ref=br_tf)[![LinkdIn](https://www.ironscpa.com/hs-fs/hub/332864/file-817405565.png)](https://www.linkedin.com/company/ann-m-irons-cpa-llc)[![twitter](https://www.ironscpa.com/hs-fs/hub/332864/file-817410620.png)](https://twitter.com/AnnMIronsCPALLC) # The Bean Counter with Ann M Irons, CPA --- [![Tax Year 2024 Business/Individual Tax Returns](https://no-cache.hubspot.com/cta/default/332864/aef2b35b-07b9-4f4e-be11-0410ebf842de.png)](https://cta-redirect.hubspot.com/cta/redirect/332864/aef2b35b-07b9-4f4e-be11-0410ebf842de) --- ## [Law Firm Accounting: What Every Attorney Should Know About GAAP](https://www.ironscpa.com/blog/what-every-attorney-should-know-about-gaap) Posted by [Ann Irons, CPA](https://www.ironscpa.com/blog/author/ann-irons-cpa) Oct 30, 2014 11:32:00 AM - [Tweet](https://twitter.com/share) ![fasb-asc](https://www.ironscpa.com/hs-fs/hub/332864/file-2041670487.jpg?width=275&name=file-2041670487.jpg)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. ## FASB and ASC The Accounting Standards Codification, or ASC, was recently launched by the Financial Accounting Standards Board. Before this, it was all but impossible for non-accounting professionals to keep track of all GAAP sources and their respective pronouncements, of which there were thousands. Today, all authority rests with the ASC as the go-to resource for generally accepted accounting principles. In the future, pronouncements will be discarded in favor of additions, revisions, and deletions to the ASC. ## Taking Advantage of the ASC The good news is that accessing ASC is relatively straightforward and can be done either in print or via an electronic method; Many attorneys prefer digital access, which can be achieved in one of three ways through the [FASB website](http://asc.fasb.org/home). For lawyers, two of these three options are available: Basic View, which is free but has limited functionality, and Professional View, which adds several search features and viewing options. **Content, style, and structure: **GAAP may not have changed much with the introduction of the ASC, but it has had a significant impact on the way the principles are organized and presented for use. These are divided into topics, subtopics, and sections. For example, you might find guidance on the topic of [financial statements](https://www.ironscpa.com/blog/get-more-from-your-financial-statements), using a subtopic to locate a specific type of financial statement, each broken down into several sections. **The personal annotation feature: **Some attorneys argue that the ability to create personal annotations alone is worth the cost of Professional registration with the ASC. The feature allows for fast access to commonly cited items. For example, you might use this feature to easily access items related to real estate purchase or transfer contracts. **Awareness: **Any updates to the existing GAAP will be accessible through the FASB and ASC website. You can access updates sequentially, check in periodically, or subscribe for updates. Note that both existing and new versions of GAAP will be available and visible in the Codification; the existing, outdated version will only be removed once the new guidance is completely in effect. As always, we are here to provide guidance for [escrow accounting](https://www.ironscpa.com/blog/escrow-accounting-tips-for-real-estate-law-practices) and other financial functions essential to running your law practice. [![guide to escrow accounting for real estate attornies](https://no-cache.hubspot.com/cta/default/332864/d68280fe-b7de-47dc-b1af-d42f1fb6756e.png)](https://cta-redirect.hubspot.com/cta/redirect/332864/d68280fe-b7de-47dc-b1af-d42f1fb6756e) Topics: [Accounting for Lawyers](https://www.ironscpa.com/blog/topic/accounting-for-lawyers) ## About **Ann M. Irons, CPA LLC** ![Ann](https://www.ironscpa.com/hubfs/images/Ann.jpg)Ann has spent over 25 years in the financial service industry, gaining knowledge and experience that allows her to provide an array of tax, and accounting and advisory services for her clients. Relying on a stringent code of ethics and a dedication to maintaining the highest industry standards, Ann works hard to ensure her clients receive the quality service they’ve come to expect. A member of AICPA and MSCPA, Ann has also had an article featured in the renowned publication, Banker and Tradesman.  ### Subscribe to Email Updates Search by Topic Search ### Recent Posts ### Posts by Topic - [Small Business Accounting (24)](https://www.ironscpa.com/blog/topic/small-business-accounting) - [Individual Income Taxes (18)](https://www.ironscpa.com/blog/topic/individual-income-taxes) - [International Tax (17)](https://www.ironscpa.com/blog/topic/international-tax) - [Accounting for Lawyers (11)](https://www.ironscpa.com/blog/topic/accounting-for-lawyers) - [Escrow Accounting (10)](https://www.ironscpa.com/blog/topic/escrow-accounting) - [Foreign Investment Tax (8)](https://www.ironscpa.com/blog/topic/foreign-investment-tax) - [Family Business (6)](https://www.ironscpa.com/blog/topic/family-business) - [Bookkeeping (5)](https://www.ironscpa.com/blog/topic/bookkeeping) - [Personal Finance (4)](https://www.ironscpa.com/blog/topic/personal-finance) - [Client Stories (3)](https://www.ironscpa.com/blog/topic/client-stories) - [Payroll Processing (3)](https://www.ironscpa.com/blog/topic/payroll-processing) - [Small Business Tax (3)](https://www.ironscpa.com/blog/topic/small-business-tax) - [Starting Your Own Law Firm (1)](https://www.ironscpa.com/blog/topic/starting-your-own-law-firm) - [Words of Wisdom (1)](https://www.ironscpa.com/blog/topic/words-of-wisdom) [see all](https://www.ironscpa.com/blog/what-every-attorney-should-know-about-gaap#) ## Inviting You to Visit Our Office! 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