Legal Services and Accounting

As a solicitor, you may be an expert in the legal field but you will need support of a professional accountant for account and bookkeeping. You have to comply with the solicitors accounts rules. The first thing you have to know about the account rules is that you cannot maintain all account records in a single account. Every transaction requires double entry bookkeeping. It means you have to make two entries for each transaction. The two entries include debit and credit entries. You will face many problems if you do not comply with the account rules.

Learn more about solicitors accounts

Client Account Rules 

The client money should be held in the client account only. It is kept at a bank or a building society. There can be client account of a sole practitioner, a partnership form, an incorporated practice with company name or LLP name, in-house solicitors in the name of present principal solicitor, or trustees of the same recognised or licensed body. The account should be a bank account at a bank branch or a building society in England and Wales. The client account properly designated should be kept separately. The client money must be kept in the client account except where certain rules do not require it. Only the client money can be held in the client account except in certain defined conditions under the rules.

Accounting Services to Comply with the Rules

Accountants specialising in this field offer a wide range of services to the solicitors and law firms. They prepare the accountant report and can submit it if required. The accountant prepares the annual accounts. Personal tax returns of partners and sole traders are prepared. The accountants also offer advice on incorporation or LLP. They help law firms that are planning partnership changes or a review of their partnership agreements.

Forensic Accounting Services

If there has been a financial loss, it can be difficult to trace the root cause of the problem. It may be difficult to know how and where the money was withdrawn. An accountant experienced in the forensic accounting can help find all such details. A written report is prepared. The accountant is ready to appear as an expert witness in the court in such cases.

Litigation Support Services

It is not easy for the solicitors to find solutions for claims related to the personal, business, financial or matrimonial disputes that affect their firm. The partners may not agree on the business valuation of the firm. Timely assistance from an expert accountant with expertise and experience in the legal field can help in these cases. Damages and losses can be avoided while the claims can be settled amicably.