Solicitors and Law Firms

Practical advice for legal practices managing compliance, financial visibility and long-term planning.

Specialist accounting, audit and tax support for the legal sector

Solicitors and law firms operate in a regulated and competitive environment, where compliance, client money, profitability, partner tax and long-term planning all need careful management.

Our professional practices team works primarily with solicitors and law firms, providing specialist accounting, audit, tax and advisory support shaped around the needs of the legal sector.

We have worked with lawyers and solicitors’ practices across the South East for many years, helping firms meet their compliance obligations, improve financial reporting and plan for future growth.

Managing client money, partner tax and practice performance

Legal practices face a wide range of financial and operational pressures. Alongside annual accounts and tax compliance, firms may need to manage client money obligations, partnership tax, LLP structures, cash flow, partner remuneration, succession planning, mergers and acquisitions, and changing regulatory requirements.

Good advice should help your firm do more than meet deadlines. It should give you clearer financial information, highlight areas for improvement and support better decision-making across the practice.

Our accountants, auditors and tax specialists understand the opportunities and challenges facing solicitors and legal firms, allowing us to provide advice that is practical, timely and relevant to your practice.

Who we work with

  • Solicitors’ practices

    We support solicitors’ practices with accounts, tax, audit, management reporting, payroll and wider advisory services.

  • Law firms

    We advise law firms of different sizes and structures, from smaller firms to larger practices with more complex reporting needs.

  • Partnerships

    We provide accounting and tax support for traditional partnerships, including partnership tax returns and partner tax planning.

  • Limited Liability Partnerships

    We advise Limited Liability Partnerships (LLPs) on accounts, tax, partner remuneration, structure and compliance requirements.

  • Legal practices holding client money

    We support firms that hold client money and need advice around the Solicitors Regulation Authority (SRA) Accounts Rules and related reporting requirements.

  • Firms planning change

    We work with firms considering succession, restructuring, merger, acquisition, partner changes or transfer into an LLP.

Our services for solicitors and law firms

  • Annual accounts and tax compliance

    We prepare annual accounts and tax returns for solicitors, law firms, partnerships and Limited Liability Partnerships (LLPs), helping you meet deadlines and understand your financial position.

  • Solicitors Accounts Rules audits

    We provide Solicitors Accounts Rules audits and reporting accountant services for firms that hold or receive client money, helping you meet Solicitors Regulation Authority (SRA) requirements.

  • Audit and assurance

    We provide audit and assurance services for legal practices, with an understanding of the specific risks, systems and reporting requirements within law firms.

  • Partnership tax

    We advise on partnership taxation, including partnership tax returns, profit allocation, partner tax liabilities and compliance under self-assessment.

  • Tax planning for partners

    We support partners with personal tax planning, Income Tax, Capital Gains Tax and wider tax considerations linked to their role in the practice.

  • Management accounts and reporting

    We help prepare and review management accounts, giving partners and management teams clearer insight into profitability, cash flow and performance.

  • Benchmarking and profit improvement

    We support firms with benchmarking, profit improvement reviews and financial analysis to help identify opportunities to improve performance.

  • Payroll and employment tax

    We support legal practices with payroll, PAYE, benefits, employment tax and remuneration planning for staff and partners.

  • Strategy, structure and transactions

    We advise on business structure, transfer into an LLP, succession planning, law-firm mergers and acquisitions, and wider strategic development.

Supporting compliance with the Solicitors Accounts Rules

Firms that hold or receive client money need to manage their obligations carefully. The Solicitors Regulation Authority (SRA) Accounts Rules are designed to protect client money and require appropriate systems, controls and reporting.

We can support your firm with Solicitors Accounts Rules audits and reporting accountant work, reviewing client money processes, reconciliations, controls and compliance.

Where issues are identified, we provide clear findings and practical recommendations to help strengthen procedures and reduce risk.

Partnership tax, structure and partner planning

Many legal practices operate as partnerships or Limited Liability Partnerships (LLPs), which can create complex tax and reporting requirements.

We advise on partnership tax compliance, partner tax planning, profit allocation, capital accounts, remuneration structures and the tax implications of structural changes.

Where a firm is considering moving to an LLP, admitting or retiring partners, merging with another practice or planning succession, we can help assess the tax and financial implications.

Clearer reporting for stronger practice management

Strong financial information is essential for managing a legal practice. Partners need clear management accounts, cash flow insight, profitability analysis and reliable reporting to make informed decisions.

We can help review your finance processes, improve management information and support strategic planning. This may include benchmarking, Finance Director support, profit improvement work, funding advice, merger planning or acquisition support.

Frequently asked questions

Solicitors and law firms often need to manage client money obligations, partnership tax, cash flow, partner remuneration, profitability and regulatory reporting. Clear financial information helps partners understand performance and make informed decisions about the future of the practice.

Firms that hold or receive client money must follow the Solicitors Regulation Authority Accounts Rules. Strong systems, reconciliations and controls are important for protecting client money, reducing risk and meeting reporting requirements.

A Solicitors Accounts Rules audit is a review carried out by a reporting accountant for firms that hold or receive client money. It considers whether the firm has complied with the SRA Accounts Rules and whether any issues need to be reported.

Not all firms need to submit an accountant’s report. The requirement depends on the firm’s circumstances, whether it holds or receives client money and whether any exemptions apply.

Many legal practices operate as partnerships or Limited Liability Partnerships, which can create specific tax and reporting requirements. Firms may need to consider profit allocation, partner tax liabilities, capital accounts, remuneration structures and changes in partnership membership.

Moving to a Limited Liability Partnership can affect tax, accounting, governance, profit sharing, partner responsibilities and the wider structure of the practice. The financial and commercial implications should be reviewed before making the change.

Management accounts help partners monitor profitability, cash flow, lock-up, department performance and overheads. This information can support better decisions around pricing, staffing, partner drawings and long-term planning.

Succession or merger planning should consider valuation, partner objectives, tax, client relationships, staff, structure, due diligence and future management of the practice. Early planning can help identify issues before discussions become more advanced.

Profitability can be affected by fee recovery, pricing, staffing, overheads, lock-up, work in progress and partner remuneration. Clear reporting and benchmarking can help firms identify where performance could be improved.

Partners may need advice on personal tax, Income Tax, Capital Gains Tax, profit shares, drawings, capital accounts and changes in partnership structure. The position can become more complex when partners join, retire or dispose of an interest in the practice.