Running a legal practice without the right accounting help? That’s a recipe for stress, penalties, and paperwork headaches.

I’ve worked with dozens of solicitors over the years, and one thing’s clear: accounting for legal firm setups is a different beast. Unlike regular businesses, law firms deal with strict rules, client money, and the SRA accounting rules—all of which can get tricky fast.

Here’s what law firms are often up against:

• Handling client accounts without error

• Staying in line with SRA guidelines

• Juggling tax, payroll, and trust funds

• Avoiding fines due to mismanagement

It’s not that lawyers don’t care about the numbers—it’s that they’re too busy focusing on legal work. That’s where a solid accountant for law firm support comes in.

Key Accounting Services Every Law Firm Should Have

From keeping the books tidy to passing audits, the right support saves time, money, and your firm’s reputation.

Trust & Client Fund Management

This is the big one. One small mistake in handling client money? Boom—regulatory trouble.

That’s why having legal accounting experts on your team is non-negotiable. They ensure every penny is tracked, logged, and reported according to SRA rules.

Tax Help from a Financial Tax Advisor

A good financial tax advisor makes sure your firm isn’t overpaying on taxes or missing deadlines. I’ve seen firms save thousands just from properly claiming allowable expenses.

They also help with:

• VAT returns

• Corporation tax filings

• Partner drawings and dividends

SRA Audit & Compliance Support

The SRA audit process can be nerve-racking if you’re not ready. I’ve sat with firms that panicked last minute—missing documents, mismatched ledgers... you name it.

The fix? A seasoned SRA advisor who knows what the auditors will look for. They’ll get your house in order before trouble knocks.

Bookkeeping + Reporting for Lawyers

Day-to-day bookkeeping matters just as much as big-ticket audits. Accurate records help:

• Manage case costs

• Track trust balances

• Stay on top of cash flow

We offer regular reports that make your firm’s finances easy to understand—no accounting jargon.

Meet the Legal Accounting Experts – What They Actually Do

Not all accountants are the same. I can’t tell you how many times we’ve taken over from firms who had a general accountant, not someone who understood law firm accounting services.

Accountants for Solicitors vs. General Accountants

An accountant for solicitor doesn’t just "do the numbers." They:

• Understand how client accounts work

• Know what the SRA wants to see

• Help lawyers stay compliant while being tax-efficient

What Law Firm Accountants Know That Others Don’t

We’re used to legal industry quirks. Whether it’s how disbursements are billed or how to split trust money—it’s our bread and butter.

I remember working with a firm in Preston that struggled with fee earners overcharging VAT on court disbursements. We caught it, corrected it, and saved them from a potential investigation.

That’s the difference law firm accountants make.

Audits & Compliance – Getting It Right the First Time

Internal vs External Audits for Law Firms

• Internal audits help catch issues before the SRA does. We go through your books, client accounts, and ledgers and flag anything off.

• External audits are often required for bigger firms. Having professional internal auditors for law firms who understand legal requirements makes the process smoother.

Understanding SRA Accounting Rules

The SRA accounting rules are not something you can wing. They’re strict and change every few years. That’s why we always stay current, update our clients, and adjust procedures accordingly.

The Role of an SRA Advisor

We act as a second set of eyes. As your SRA advisor, we’ll:

• Train staff on accounting do’s and don’ts

• Set up proper systems

• Prepare for audits

Common Mistakes to Avoid

• Not reconciling client ledgers monthly

• Mixing office and client money

• Missing deadlines for SRA submissions

We’ve helped firms fix these issues quickly—before they became fines.

Choosing the Right Accountant for Your Legal Practice

It’s not just about picking someone who can crunch numbers. You need someone who understands law firms inside out.

What to Look for in a Legal Accounting Partner

• Specialist Experience: Not all accountants get legal work. Make sure they do.

• Up-to-Date with SRA Rules: The rules shift. Your accountant should keep up.

• Proactive Advice: You want someone who flags issues before they become fines.

Local Support: Accountants in Preston Lancashire

If you’re based in the North West, we’re here. As accountants in Preston Lancashire, we’ve supported law firms of all sizes—handling audits, managing client money, and keeping partners out of hot water.

Working local has perks:

• Face-to-face meetings

• Quick response times

• Personalised support

Tech Tools & Tips for Smarter Legal Accounting

Using the right tools makes a world of difference. Here are a few we recommend:

• Xero or QuickBooks: For day-to-day bookkeeping

• CCH or Iris: For managing accounts and tax

• SRA-compliant spreadsheets: For trust account reconciliation

Automation means fewer errors, more time saved, and better records.

Real Results – A Case Study of a Law Firm in Preston

We worked with a mid-size law firm in Preston handling family law and conveyancing.

The issue: They were falling behind on monthly reconciliations and had received an SRA warning.

Our fix:

• Took over their bookkeeping and reconciliations

• Trained their admin team on proper accounting procedures

• Handled their SRA audit with flying colours

The result:

• SRA compliance regained

• Over £8,000 saved in tax after identifying missed allowances

• Renewed trust from their clients and regulators

FAQs About Legal Accounting Services

Q: Can’t I just use a regular accountant?
A: You could, but they might not understand SRA accounting rules or client fund rules—and that’s risky.

Q: How often should we review our client ledgers?
A: Monthly. At the very least. It's required under SRA rules.

Q: Do you only work with firms in Preston?
A: No, but we’re proud to serve as accountants in Preston. We also work with firms across Lancashire and beyond.

Q: What’s your experience with audits?
A: We’ve prepared and supported dozens of successful SRA audits and helped many law firms pass without issue.

Final Thoughts – Secure, Smart, SRA-Compliant

Legal accounting doesn’t have to be confusing or stressful.

With the right accountants for law firms in your corner, your firm can stay compliant, tax-efficient, and financially strong.

Whether you need help with SRA audit prep, managing client funds, or just want honest advice from a corporate tax accountant who understands law, we’re ready to help.

Let’s make accounting one less thing you have to worry about.

Reach out today to see how our audit and accounting services can support your law firm—without the jargon or the stress.