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As a solicitor in the UK, there are a couple of ways you can go with regard to your employment. While some seek the relative security of a position within an established law firm, others prefer the freedom of being self-employed, working as a freelancer.
Whichever path you choose, you'll need to deal with your accounts at some point. While this is generally easier if you are an employee, the process is much more involved for a sole practitioner. And for those setting up their own law firm, the responsibility falls on you to ensure that all accounting matters are dealt with accurately, ethically and professionally.
Although a career in the legal profession requires a sharp mind, a wealth of knowledge and a good deal of academic prowess, accounting matters are not something that most solicitors have either the time, enthusiasm or inclination to tackle.
This is why most solicitors engage a qualified accountant. But is a traditional accountant the right choice?
At Auditox Accountancy, we believe that different sectors of industry deserve dedicated accountants with specialist knowledge. That's why we invested time and effort in training accountants for solicitors.
Our accountants for solicitors have an in-depth understanding of how legal firms work, and they understand the need for compliance with the solicitors accounts rules laid down by the solicitors regulation authority (SRA).
This means that you won't have to waste time explaining how law firms operate or acquaint them with the terms of the Legal Services Act. Your dedicated accountant will already be up to speed and ready to take on the challenges involved.
In addition, they can provide all of the services you'd expect from a qualified accountant, including the examples below.
Year-end accounts are compulsory for all limited companies - no matter their size - in the UK, whether they are dormant, still trading, or have made a loss. These accounts have to be sent to Companies House within the set deadline.
Sole traders are exempt, as their tax bill is calculated via the self-assessment tax return.
Limited companies (including limited liability partnerships) must produce statutory year-end accounts and send them online to Companies House and HMRC. However, the deadline dates for these often vary, and while HMRC expects the full accounts, you can send an abridged version to Companies House (depending on the size of the company).
It's not compulsory to have these compiled or checked by a qualified accountant, but it's a wise decision for law firms who need to ensure that everything is 100% accurate and processed in accordance with the Solicitors Regulation Authority rules. Where necessary, we can employ forensic accounting methods to identify discrepancies and resolve them in a timely manner.
Our accountants are experts in this area and will prepare, check and submit your accounts before forwarding them to the relevant body within the accepted time frame.
It is in the interests of any business to have a set of professionally prepared and well-presented accounts, but for law firms, this is particularly important. Transparency, openness and precision are essential for any legal professional. Auditox takes this issue seriously and will uphold high standards in all of your accounting and business procedures.
All businesses are expected to be fully compliant with the rules regarding their tax and accounting affairs.
For legal professionals, this is even more important. Any legal representative must be seen to be above reproach, without any possible reason to cast doubt on their reputation. The Legal Services Act and SRA accounts rules set out the expected standards for anyone working in the legal sector, and the consequences of breaking these rules can be severe.
Your dedicated Auditox accountant will keep these standards at the forefront of any tax or accounting activity to ensure that you remain well within the guidelines.
All limited companies are subject to corporation tax on any profits for the year, and this has to be paid on time to avoid financial penalties. Sole practitioners are exempt, as they pay any relevant tax via the self-assessment process.
Our expert accountants are familiar with the corporation tax mechanism and keep abreast of any changes to the legislation.
They will calculate how much is due and ensure that it is paid by the deadline.
As well as guiding your business finances, we can help you with your personal finances.
After all, you don't intend to work forever!
You invested time, money and effort in your law career, and you need to make sure that you get the most out of it.
Our accountants can offer proactive advice about investments, savings, money management, and expenses that will ensure that your future finances are healthy, allowing you to look forward to a financially secure retirement.
This is a potential minefield for solicitors; the rules for allowable expenses are complex and convoluted, to say the least.
Whether you are self-employed in the legal profession or you own a law firm, we will complete your tax returns for you - or provide expert advice, should you prefer to do this yourself.
Either way, the process will be completed swiftly and efficiently, leaving you to focus your expertise on your work or take a well-earned break. As always, the task will be completed according to the Solicitors Regulation Authority rules.
With regards to VAT returns, we will help you to register for VAT if or when you reach the threshold and complete the returns for you. We also liaise with HMRC on your behalf whenever necessary to free up more of your valuable time.
Paying employees isn't always a straightforward or simple task.
Our payroll system makes things much easier, and you will have access to this from a variety of devices. This allows you to be in control at all times to check staff pay, tax figures, and other personal information from a safe and secure system.
Again, your personal Auditox accountant will offer guidance on your payroll process and all areas pertaining to this.
Keeping track of income and client monies can be a challenge for solicitors. While you may be salaried, some earnings come via commission from certain cases. If you are self-employed, the process can be even more complex.
Auditox provides bookkeeping software that is straightforward and easy to use. We also train you how to use this, if required. This system will do most of the work for you, helping you to keep on top of things.
And if you have any questions, your accountant will be available to assist you!
Taxes are an inevitable fact of life, and no matter how we feel about them, they have to be paid. And for law firms or those in the legal sector, it's imperative that this is handled accurately and properly.
Paying the wrong amount - whether deliberately or not - can result in unwelcome ramifications from HMRC as well as the Solicitors Regulation Authority. The very last thing you need is to face an investigation resulting in disbarment.
However, there's no harm in exploring your tax position to find legal and acceptable ways of offsetting your overall tax bill.
Your Auditox accountant will seek out all potential deductions, exclusions, exemptions, reliefs and allowances to minimise your tax liability within the accepted SRA accounts rules, reporting all necessary data and documentation to the relevant bodies.
This is an excellent way of increasing your profits and personal income, strengthening your business finances and keeping you in line with the expected standards. Auditox Accountancy Services has a proud record of achieving successful outcomes in this area, and we are happy to extend this to all legal professionals.
Your accountant will be available at your convenience to offer sound tax planning advice as and when it is required.
All forward-thinking businesses create a comprehensive plan for future growth and success, regardless of whether they operate as sole practitioners (freelance), limited liability partnerships, or limited companies.
Many firms in the legal sector have non-lawyer managers, owners or investors, and the best way for these to operate (in England and Wales only) is to become an ABS (alternative business structure).
We will advise you on all aspects of transitioning to an ABS from start to finish, beginning with an initial consultation to see whether this is the best course of action for you.
We can offer advice regarding the best company structure and assist you in compiling a workable business plan that takes your legal practice into a successful and profitable future.
We can advise you on all of the following aspects:
Your accountant will arrange regular meetings, if necessary, to iron out all of the details, identify pressing issues that need attention, discuss your practice goals, and get your firm on the right track to success.
We have a proud record of working with legal firms and legal departments, and our solicitor specialists are ready to offer the same level of expertise to you, whether you're with a legal firm or operating as a freelancer.
Unlike traditional accountants, we focus on compliance work to ensure that the Law Society and SRA rules are upheld at all times.
Auditox Accountancy specialist solicitor accountants are highly trained and will act as an advisor and sounding board. They will quickly form a good working relationship with each client to ensure the best outcome for all.
Call today and discover how Auditox can offer you a cost-effective accounting solution for you and your firm. We'll help to keep you fully compliant, competitive and productive. Your finances will be healthier than ever, and you'll have a great deal more free time!
Solicitors often have complex financial structures that include trust accounts, client funds, and strict regulatory compliance requirements. Specialised accounting services are equipped to handle these intricacies, ensuring both legal and financial compliance.
Yes, we offer comprehensive auditing services tailored to the unique needs of legal practices, focusing on risk management and compliance with Solicitors Regulation Authority (SRA) standards.
Absolutely, we offer bespoke accounting packages that can be customised to meet the specific financial and regulatory needs of your legal practice.
All financial records are securely stored in compliance with the UK's data protection laws. We employ encryption and multi-factor authentication to ensure the confidentiality and integrity of your data.
Solicitors often have complex financial structures that include trust accounts, client funds, and strict regulatory compliance requirements. Specialised accounting services are equipped to handle these intricacies, ensuring both legal and financial compliance.
Yes, we offer comprehensive auditing services tailored to the unique needs of legal practices, focusing on risk management and compliance with Solicitors Regulation Authority (SRA) standards.
Absolutely, we offer bespoke accounting packages that can be customised to meet the specific financial and regulatory needs of your legal practice.
All financial records are securely stored in compliance with the UK's data protection laws. We employ encryption and multi-factor authentication to ensure the confidentiality and integrity of your data.