Law Firm Accounting & Solicitor Financial Services

Under the Solicitor Accounts Regulations, solicitors must keep client funds completely separate from office operational funds in designated client bank accounts. Client money must be lodged promptly, withdrawals can only be made for specific client-authorized purposes, and detailed individual ledger accounts must be maintained for every client. An independent accountant's report must be submitted to the Law Society annually.

Disbursements such as court stamp duties, expert witness fees, and Land Registry searches are expenses paid on behalf of a client. They must be recorded separately on the client ledger and billed transparently. We ensure proper VAT treatment is applied—distinguishing between taxable professional fees and VAT-exempt or disbursement-only outlays.

We work seamlessly with leading legal practice management and billing software platforms such as LEAP, Clio, and Quill, integrating them directly with Xero or QuickBooks to ensure smooth reconciliation between time-recording, billing, and trust accounts.

The choice depends on your practice's revenue, profit retention goals, and liability considerations. Incorporated legal practices (Limited Companies) can offer corporate tax advantages and limited liability protection, but they also involve stricter regulatory oversight by the Law Society and the Companies Registration Office (CRO). We provide comprehensive tax modeling to help you decide the optimal structure.