Accountants For Solicitors, Lawyers, and Legal Professionals

Legal professionals, including solicitors, lawyers, and law firms, play an important role in delivering legal advice, representing clients, and handling complex cases. Whether you work as independent practitioners or within a firm, your responsibilities extend beyond legal matters. Managing finances, tax obligations, and regulatory compliance are equally important for a successful legal career.

Unlike standard businesses, legal practitioners must follow strict accounting rules, particularly those set by the Solicitors Regulation Authority (SRA). Working with Accountants for Solicitors helps legal professionals keep their finances organised while focusing on their core expertise - providing legal services.

Why Solicitors Need Specialist Accountants

Specialist solicitor accountants understand the complexities of tax planning and compliance. A general accountant may not have the expertise to handle the unique financial structure of legal practices, making it crucial to work with professionals who specialise in accounting for solicitors and law firms.

Challenges Faced by Solicitors, Legal Practitioners, and Law Firms in Accounting

Legal professionals face several financial and regulatory challenges, including:

• SRA Compliance – The SRA has strict Solicitors' Accounts Rules that govern how solicitors manage client money. A small mistake in handling funds can lead to serious legal and financial consequences..‍
• Client Money Management – Solicitors hold funds on behalf of clients, requiring separate accounts.‍
• Complex Tax Planning – Solicitors often have multiple income streams, including salaries, dividends, and self-employed earnings.
• VAT for Legal Services – Legal services are subject to VAT, but different cases may have different VAT treatments.
• Bookkeeping & Financial Reporting – Keeping track of earnings, expenses, and client funds requires a structured approach. Without proper bookkeeping for solicitors, financial mismanagement can lead to cash flow issues and compliance risks.
• Cash Flow Control – Balancing irregular income from legal cases while covering operational costs.

What are Solicitors Accounts Rules?

The Solicitors Accounts Rules (SARs) are a set of financial regulations set by the Solicitors Regulation Authority (SRA) to govern how law firms handle client money. These rules ensure that solicitors manage client funds responsibly, preventing misuse and protecting client interests.

Key Principles of Solicitors Accounts Rules

• Separation of Client and Business Funds
  • Solicitors must keep client funds in a designated client account, separate from the firm’s own money.
  • This prevents any misuse of client funds for business expenses or personal use.
• Proper Record-Keeping & Reconciliation
  • Solicitors must maintain detailed financial records of all transactions involving client money.
  • Regular reconciliations are required to match records with bank statements.
• Timely Transfers & Payments
  • Any money received on behalf of a client must be paid into the client account immediately.
  • Transfers to the firm's business account can only be made for fees due or agreed disbursements.
• Transparency & Accountability
  • All transactions must be fully documented and auditable.
  • Clients should receive clear statements showing how their money is handled.
• Compliance & Reporting
  • Law firms must submit annual reports to confirm compliance with SRA rules.
  • Any breaches must be reported to the SRA immediately.

How Specialist Legal Accountants Help Solicitors & Law Practitioners

Legal accountants simplify financial tasks, allowing lawyers to focus on their clients. With expertise in accounting for legal practitioners, they:

• Handle bookkeeping for solicitors, keeping financial records in order.
• Prepare and submit accurate tax returns and VAT reports.
• Support freelance lawyers with tailored tax strategies.
• Provide payroll services for law firms, managing staff wages smoothly.
• Prepare SRA-compliant financial reports.
• Help with SRA audits, avoiding regulatory issues.

10 Reasons to Choose GoForma as Your Accountants for Solicitors

With years of experience in accounting and finance for lawyers, we offer dedicated financial support tailored to legal professionals.

Industry Expertise

From bookkeeping for solicitors to handling tax planning for legal professionals, we provide expert financial guidance. Whether you’re a freelance lawyer or running a law firm, our accountants for lawyers help you stay on top of your finances.

SRA Compliance

Our accountants for law firms make SRA compliance simple by assisting with client account reconciliations, financial reporting, and compliance checks to keep your practice in line with SRA regulations.

Your Own Dedicated Solicitors Accountant

Every solicitor and law firm is different, which is why we assign you a dedicated accountant. Your accountant will handle everything from bookkeeping for solicitors to tax planning for lawyers, providing a personalised service that meets your specific requirements.

FreeAgent Accounting Software at No Extra Cost

As part of our service, we provide FreeAgent software at no additional charge. This cloud-based tool simplifies bookkeeping for lawyers, making it easier to track expenses, invoices, and cash flow in real time.

Fixed Monthly Fee

We offer a fixed monthly pricing so you know exactly what you’re paying. Our all-inclusive packages provide everything you need to manage your legal practice’s finances without worrying about unexpected costs.

Certified and Trusted Legal Accountants

Our team consists of certified accountants with extensive knowledge of accounting and finance for lawyers. They have years of experience working with solicitors, law firms, and legal contractors, keeping your business financially healthy.

Proactive Tax Planning

Legal professionals face complex tax rules, but our proactive tax planning helps you save money. Our accountants provide proactive strategies tailored to solicitors and legal contractors. From VAT returns to income tax for freelance lawyers, we handle all tax matters so you can focus on your legal work.

Regular Tax Reminders

Late tax filings can lead to fines. Our proactive tax reminders keep you updated on self-assessment tax returns, VAT submissions, and corporation tax deadlines. With our accountants for solicitors, you stay ahead without worrying about penalties.

Unlimited Support

We offer unlimited support through email, WhatsApp, and phone. Whether you need quick advice or have questions, our team is always available to help. You won’t be left waiting for answers. We respond quickly and provide clear solutions to your financial queries.

Easy Switching Accountants

If you’re unhappy with your current accountant, we make switching stress-free. Our team will manage the entire process, from transferring records to communicating with your old accountant. You won’t have to deal with paperwork or complicated procedures, just leave it to us.

Who We Help

We provide tailored accounting services to legal professionals across different practice areas.

• Solo Practitioners
• Freelance Solicitors
• Small & Medium-Sized Law Firms
• Legal Consultants and Contractors
• Lawyers
• Barristers

Our Accounting Services for Solicitors & Legal Professionals

Whether you run a law firm, work as a freelance lawyer, or operate as a legal contractor, our services cover every aspect of legal accounting.

SRA-Compliant Accounting & Reporting

Our expert solicitors accountants manage client accounts, track transactions, and prepare reports that meet SRA compliance requirements.

VAT Registration & Returns

Many law firms and solicitors must register for VAT and submit returns correctly. Our accountants handle VAT registration, filing, and compliance, so you don’t overpay or miss deadlines. Whether you’re on the standard VAT scheme or the flat rate scheme, we provide expert guidance on what works best for your practice.

Cash Flow Management

A steady cash flow keeps your legal practice running smoothly. Our accountants for legal practitioners track income, expenses, and client payments, helping you manage finances efficiently. With accurate forecasting, you can make informed decisions about spending, investments, and business growth.

Advice on Raising Finance

Looking to expand your legal practice? Whether you need funding for office space, technology, or staff, our accounting services for solicitors include expert advice on raising finance. We help you explore loan options, grants, and investment opportunities that support your firm’s growth.

Choosing the Right Business Structure

Our lawyer accountants offer tailored advice on setting up as a sole trader, limited company, or partnership. We guide you on the most tax-efficient structure, so you can maximise profits while staying compliant.

Self-Assessment Tax Returns

Legal professionals who operate as sole traders or freelance solicitors must submit self-assessment tax returns each year. Our accountants for freelance lawyers handle tax calculations, deductions, and filings, making tax season stress-free.

Bookkeeping With FreeAgent

We use FreeAgent software to track transactions, categorise expenses, and prepare financial summaries. With quarterly reviews, you stay updated on your firm’s financial health without spending hours on paperwork.

Company Registration & Legal Practice Setup

Starting a law firm or legal practice? Our accountants for solicitors handle company registration, LLP registration, and HMRC setup for Corporation Tax, VAT, and PAYE, ensuring legal professionals meet all financial requirements from day one.

Company Accounts & Corporation Tax Returns

Limited company solicitors must file annual accounts and Corporation Tax returns. Our team prepares and submits statutory accounts and CT600 returns, keeping legal practices compliant with UK regulations.

Payroll Services for Law Firms

Handling payroll for a legal firm can be time-consuming. Our accountants for legal contractors handle payroll processing, tax deductions, National Insurance contributions, and pension filings, keeping your employees paid correctly and on time.

Business Advisory for Legal Professionals

We provide strategic financial planning for solicitors and law firms, offering growth advice, budgeting support, and restructuring guidance to help legal businesses thrive.

Let GoForma Grow Your Legal Profession

Managing finances as a legal professional can be complex, but the right accountant makes all the difference. Our specialist accountants for solicitors provide tailored services to help you stay tax-efficient, compliant, and financially organised.

Whether you run a law firm, work as a freelance lawyer, or operate as a legal contractor, our expert team offers proactive tax planning, SRA-compliant accounting, and dedicated support.

Book a free consultation today and discover how our legal accountants can help your practice thrive!

Your own specialist accountant for LawyersPreparation of financial statementsPreparation & submission of quarterly VAT returnsPreparation of self-assessment tax returnsTax planning advice to help maximise tax efficiencyAssistance with HMRC records checksQuarterly review of your bookkeepingReminder services for all deadlines and paymentsUnique partner benefits24/7 access to FreeAgent