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Legal Services Accountants

Law firm accounting including SRA client account compliance, disbursement tracking, case costing, and partner profit allocations.

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Written by Asrah Abbas, ACA / ACCA — Principal at Westfin Accountants Ltd
Chartered accountant with 12+ years of UK practice experience. Member of the Institute of Chartered Accountants in England and Wales (ICAEW) and the Association of Chartered Certified Accountants (ACCA).
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In plain English

Law firm accounting has unique rules: Solicitors’ Accounts Rules for client money, partner-vs-fixed-share-partner taxation, and ABS structures. Westfin handles annual Solicitors Accounts Rules compliance, LLP accounts, and partner profit-share tax.

Sector-specific tax matters

The reliefs, schemes and risks that consistently apply in this sector — with HMRC source links so you can verify everything we say.

SRA Accounts Rules

Solicitors Regulation Authority requires segregated client account, monthly bank reconciliations within 5 weeks, and an annual Accountant’s Report from a reporting accountant.

Reference (gov.uk)
LLP partner taxation

Partners taxed personally on profit share — including notional interest on capital. Salaried member rules may reclassify fixed-share partners as employees.

Reference (gov.uk)
WIP for legal time recording

Time-recorded WIP recognised at expected sales value less expected write-offs under FRS 102 — significant judgement on collectability and write-down rates.

Reference (gov.uk)

Common Legal Services Accounting Challenges

SRA Accounts Rules compliance

Client account reconciliation

Disbursement tracking and recovery

Case profitability analysis

Partner drawings and profit share

Professional indemnity claims

Our Legal Services Solutions

Practice management software integration

Daily client account reconciliation

Automated disbursement invoicing

Matter-based profitability

Partnership profit distribution

SRA audit preparation

Specialized Services for Legal Services

SRA client account compliance

Daily client account reconciliation

Disbursement accounting and recovery

Matter profitability analysis

Partnership accounts and allocations

SRA Accountants Report preparation

Legal Services FAQs

What are SRA Accounts Rules?

SRA Accounts Rules govern how solicitors handle client money. We ensure daily reconciliations, proper segregation, and compliance with all rules to avoid regulatory intervention.

When do we need an SRA Accountants Report?

If you hold client money, you need an annual Accountants Report within 6 months of year-end. We prepare accounts ready for reporting accountant review.

How do you track case profitability?

We integrate with case management systems (Clio, PracticePanther) to track time, disbursements, and costs per matter, providing profitability reports by case type and fee earner.

Ready to Get Started?

Speak to our Legal Services accounting specialists today