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Professional Services Accountants

Accounting for law firms, consultancies, architects, and professional practices including time billing, disbursement tracking, and client account compliance.

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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).
Last updated:

In plain English

Professional services firms (consulting, agencies, design studios) deal with WIP, partner-vs-employee structures, and client retainer revenue recognition. Westfin handles LLP accounting, partner tax, and IR35 for associate consultants.

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.

LLP taxation

LLPs are tax-transparent — partners taxed personally on their share of profit. Salaried member rules can reclassify junior LLP members as employees.

Reference (gov.uk)
WIP / unbilled revenue

Professional services WIP must be recognised under FRS 102 Section 23 at fair value of work completed — not at billing date.

Reference (gov.uk)
IR35 for associates

Associate consultants via their Ltd Co are inside IR35 if the engager controls how, when and where they work. £10m+ engagers must determine status.

Reference (gov.uk)

Common Professional Services Accounting Challenges

Time and billing tracking

Work-in-progress valuations

Disbursement recovery

Client account regulations (SRA)

Revenue recognition on projects

Partner profit allocations

Our Professional Services Solutions

Practice management software integration

Automated time billing

WIP reporting and invoicing

Client account reconciliation

Revenue recognition compliance

Partnership profit distribution

Specialized Services for Professional Services

Time and billing integration

WIP and unbilled revenue tracking

Disbursement accounting

Client account compliance (law firms)

Revenue recognition (IFRS 15 / FRS 102)

Partnership accounts and tax

Professional Services FAQs

How do you handle law firm client accounts?

We reconcile client accounts daily, ensuring compliance with SRA Accounts Rules. Trust accounting is separated from business accounting, with monthly reconciliations and audit trails.

When should we recognize revenue on long projects?

Revenue recognition depends on your contracts. We apply percentage of completion, milestone, or completed contract methods as appropriate under FRS 102 Section 23 or IFRS 15.

How do partnership profit allocations work?

Partner profits are allocated based on partnership agreements, considering salary, interest, and profit share ratios. We prepare partnership tax returns and individual partner statements.

Ready to Get Started?

Speak to our Professional Services accounting specialists today