Producing the bookkeeping and year end accounts for Law Firms is very different to doing this for any other business.  When it comes to doing their Bookkeeping and Accounting Law firms have very detailed regulatory requirements imposed on them by the Solicitors Regulation Authority (SRA). This includes:

• Ensuring all office and client account monies are kept separate.
• Ensuring monthly bank reconciliations are performed for the client bank account.
• For Law firms who handle client money, Producing an annual SRA report for the Law Society.
• Ensuring that client account ledgers do not go overdrawn.

When doing the bookkeeping for your Law firm you also need to ensure that all monies paid out on behalf of clients (Called Disbursements) are recharged to that particular client’s ledger.  It is also important to ensure that all fee earner hours are charged to clients.

At Millhouses Accountancy we have many years of experience of Law firm Bookkeeping and Accounting and understand the requirements inside out.  As a Law firm owner you should definitely be looking to engage the services of a bookkeeper and accountant with lots of experience in this area as the rules are quite complex.

At Millhouses Accountancy we can provide the following level of support to your Law firm:

Bookkeeping and Payroll

• Ensuring all supplier invoices and payments are entered onto the bookkeeping system.
• Ensuring all bills raised to clients are entered on the respective client ledgers and are paid off as and when funds are received
• Recharging all disbursements paid out to the relevant client ledger
• Ensuring all fee earner hours are charged to the relevant client ledger.
• Producing monthly bank reconciliation statements for both client accounts and office accounts.
• Producing and filing quarterly vat returns with HMRC
• Producing month end reports as required.
• Running the monthly staff payroll.

It is vitally important to ensure that this stage is correct.  Any errors will result in your accounts and tax returns also being incorrect.

Year End Accounts

• Producing and filing the companies statutory accounts and a company tax return with Companies House and HMRC
• For partnerships producing partnership accounts (including appropriation accounts)
• Producing and filing the partnership tax return with HMRC.

Self-Assessment Tax Returns

• Producing and filing with HMRC self-assessment tax returns for the owners of the Law firm.

We would be happy to advise on which accounting software you should be using in your Law firm.  Millhouses Accountancy are Xero Certified advisors and use this software extensively.  However we also have extensive experience using Sage and Osprey (which is accounting software specifically designed for Law firms).

Get in touch with Millhouses Accountancy Sheffield, Nottingham & London

Call us today for more information on:

• Sheffield 0114 345 0960
• Nottingham 0115 882 0356
• London 0203 146 4808