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May 31, 2023
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Legal
We have experience within the Legal sector including compliance with the SRA Accounts Rules.
Home / Legal
Legal Sector Accountancy
We provide support to several nationwide law firms and offer a wide range of accountancy services. All our services can be tailored to meet your individual needs.
Driving business growth for legal start-ups
At MMBA, we have in-depth experience of providing accountancy services for new legal start-ups, ensuring you are given the right advice and assistance, whilst avoiding potential pitfalls.From guidance in deciding the appropriate legal structure of the firm, to helping in deciding & setting up Legal Accounting Software, or providing assistance in SRA Authorisation Application, we can make your life easier by taking the strain of all the financial and regulatory details.This helps you to focus on running and growing your business, knowing that we are proactively managing your finances and regulatory compliance in the background.Here are just some of the other areas in which we can provide specialist services for your legal start-up:
- Help in Getting PI Insurance Cover
- SRA Client Money Audit Reports
- Dealing with Client Money & complex accounting transactions
- Training your staff on SRA Compliance
- Setting up SRA Reporting Period for Client Money Reports
- Training COFA
- Advice on VAT thresholds & Registrations
- Dealing with PAYE, Corporation Tax & Personal Tax Issues
Legal Accountancy for Established firms
Being a more established business in the legal sector, means that you are likely to have evolving requirements and that your accountancy provider needs to be able to scale with these needs.
At MMBA, we have a pedigree of working with long-term legal sector clients and delivering value added services that are both proactive and responsive.
If you feel that your current accountancy firm could be looking after your interests with more dedication and personal attention, then you will find the MMBA approach a refreshing change.
Below are just some of the service where our specialist legal sector experience and know-how can help you grow and protect your business and wealth:
- Reviewing the legal structure of the firm
- SRA Client Money Audit Reports
- Advice on moving from Sole Trader to Limited Company, or LLP where beneficial
- Assisting the legal book-keeping team on achieving SRA Compliance
- Aligning the SRA Reporting Period with the firm’s year end period
- Dealing with Client Money & complex accounting transactions
- Training COFA
- Advice on VAT implications, such as standard rated, exempt & out of scope transactions
- Dealing with PAYE, Corporation Tax & Personal Tax Issues
- Assisting with SRA Compliance visit
The services listed above provide only an outline to the extensive range of services and areas of specialist advice we can provide to help your firm reach its next business milestone.
Compliance
We take compliance very seriously and understand how critical it is in accounting services for solicitors. Therefore, we strive to deliver exceptional and completely accurate advice on complying with the Principles of the SRA Handbook. We also help add value to your legal business by performing SRA and compliance audits, thus enabling your business to become more profitable and efficient.
Training your team
The legal sector is fast evolving, and our clients are faced with new challenges all the time. We recognise the importance of having in-house trained team members who are able to take care of your company’s basic compliance requirements.
It is for this very reason that we offer to train your bookkeepers and assistants so they can be equipped with all the necessary skills and expertise to deal with the compliance challenges presented by the industry.
Talk to MMBA’s Expert Legal Accountant
MMBA is recognized as one of the leading providers of legal accounting services. Don’t hesitate to get in touch with our expert legal accountants for easy, affordable, and excellent legal accounting services
MMBA Accounting and Bookkeeping- Best Practices for Law Firms
MMBA offers effective accounting and bookkeeping practices vital for law firms to ensure financial transparency, efficient management of financial resources, and compliance with regulatory requirements. Our best practices include:
- Separate client trust accounts
- Double-entry Accounting
- Timely and Accurate financial data or record keeping
- Handling client funds, client monies, or client trust accounts
- Managing cash flow
- Billing and Invoicing
- Trust account Reconciliation
- Bank Reconciliation
- Interest on Trust Accounts
- Financial Software
- Reporting
- Internal Controls
- Regular Audits and Reviews
- Tax Planning and Compliance (Minimising tax deductions)
- Data Security
- Third-Party Review
UK Accountants for Solicitors – Do Lawyers Need Accounting
How Bookkeeping and Accounting Matter for Law Firms – Accounting for Legal professionals
Bookkeeping and accounting play a significant role in ensuring the financial integrity and success of the legal firm itself. These are the several reasons which make bookkeeping and accounting crucial for legal firms. Accounting for a law society involves managing the financial aspects of an organisation to serve the needs of legal professionals. Accountants help you by
Managing Your Financial Statements
Effectively managing the firm’s financial statements involves utilizing the services of an accountant, which provides numerous advantages that contribute to the overall financial well-being and success of your practice
Tracking Your Deductions
Accountants can help you identify, categorise, and document deductions to reduce your tax liability for improving overall financial management
IHT and Estate Planning
Managing inheritance tax (IHT) and estate planning to minimize your tax liabilities with an accountant’s assistance is a strategic approach to preserving and passing on your wealth to your heirs efficiently
Key Risk Areas for Checking by the Reporting Accountants
For the financial and regulatory compliance of legal firms, reporting accountants can play a critical role. Some of the key risk areas that reporting accountants should check in legal firms are trust accounting compliance, client money reconciliation, interest on the trust account, financial record keeping, billing accuracy, compliance with SRA principles, regulatory reporting, and internal controls and safeguards
SRA (Solicitors Regulation Authority) Investigation in Law Firms
The Solicitors Regulation Authority is responsible for regulating solicitors and law firms to maintain the integrity of the legal profession and uphold high standards of legal professional conduct in the legal industry. Accountants provide financial expertise and assistance in the assessment of financial records, which helps in the compliance officers in determining whether a law firm has complied with its regulatory obligations or not.
SRA Accounts of Law Firms
The Solicitors Regulation Authority is responsible for regulating solicitors and law firms to maintain the integrity of the legal profession and uphold high standards of legal professional conduct in the legal industry. Accountants provide financial expertise and assistance in the assessment of financial records, which helps in the compliance officers in determining whether a law firm has complied with its regulatory obligations or not.
SRA Audit
Accountants conduct SRA audits to assess a firm’s compliance with SRA regulations, particularly those related to client accounts, financial management, and the handling of client funds. They contribute through audit preparation, risk assessment, review of financial records, documentation reviews, internal controls, audit documentation, etc
MMBA’s Services for Law Firm Accounting – Accountant for Law Firm/ Accountants for Solicitors
MMBA’s accountancy team possesses experience, reputation, and specialization in legal accountancy. They offer their services to solicitors and law firms. They are well-versed in industry-specific regulations and best practices to ensure compliance and financial transparency.
Don’t Avoid Accounting Professionals’ Help – Trust MMBA’s Accountant:
Seeking the help of accounting professionals by legal professionals can greatly benefit law firms because they provide specialized expertise, trust accounting compliance, tax planning and compliance, efficient financial management, IHT, financial reporting and analysis, data security and confidentiality, cost efficiency, internal controls, and audit support. So, legal teams and professionals must seek accounting professionals’ help for the growth and success of their legal firms in the legal market.
MMBA’s specialized expertise and knowledge contribute to the reputation, financial health, and success of legal firms.
Some Common Legal Accounting and Bookkeeping Mistakes:
Careful attention to detail and adherence to specific rules and regulations are basic requirements of legal accounting and bookkeeping. Some common legal accountancy and bookkeeping mistakes are inaccurate timekeeping, incomplete documentation, commingling funds, failure to reconcile trust accounts, misclassification of expenses, tax compliance errors, billing mistakes, delaying invoice generation, lack of financial controls, poor software selection, and failure to stay informed.
Legal Accounting Dos and Don’ts
Dos
- Maintain separation of funds
- Keep detailed records
- Use legal accounting software
- Reconcile trust accounts regularly
- Document all client transactions
- Maintain transparency
- Conduct regular audits
- Segregate duties
- Stay informed
Don’ts
- Comingle funds
- Misuse of Trust funds
- Ignore reconciliation
- Disregard tax obligations
- Overlook documentation
- Delay disbursements
- Bypass compliance with regulations
Hire MMBA to Boost your UK-based Legal Professional Business
Hiring MMBA’s professional legal accountants can be a strategic move to boost your law firm’s business. Our expert legal accountants can bring valuable expertise, experience, and knowledge to the firm, which can contribute to its growth and success
MMBA’s Legal Accounting Guidelines for Managing Financial Statements
In the United Kingdom, every law firm requires accounting guidelines for managing financial statements to ensure accuracy, transparency, and compliance with legal and ethical standards. Legal practices have to meet their obligations to clients and regulatory authorities, so they must ensure proper financial management. Here are MMBA’s accounting guidelines for managing legal and financial matters:
- Segregation of funds
- Trust account compliance
- Financial reporting
- Record keeping
- Billing accuracy
- Expense tracking
- Income recognition
- Reconciliation
- Tax compliance
- Internal controls
- Audit and review
- Consistency and transparency
- Legal and ethical compliance
- Employee training
MMBA’s Legal Accountancy Resources and Knowledge Base:
The MMBA Accountant offers a fantastic opportunity to stay updated with the most recent news and guidance
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May 26, 2023
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July 12, 2023
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Mohammed Afzal
2023-02-06
MMBA Accountants have been engaged as UK Law Solicitor’s independent auditors for the last three years. They are totally professional and yet friendly and approachable. They undertake a thorough audit and provide helpful feedback to ensure that our accounting processes remain compliant and suggest ways to make things easier for us. Their prompt and cost effective service has been very different from our previous experiences.
Sarah Coward
2020-11-10
I have used MMBA twice now for my accounts and my self assessment. I have found them to be very professional, quick to respond to my emails and very efficient.
The service they provide is value for money and good quality, I am happy with MMBA and will continue to use their service.Thank you
R TRADING
2020-05-15
Top class service they provide 👌👌👌
Mohammad Yousif Arshad
2019-07-24
Excellent. A very personalized service. Always happy to answer any queries and no trouble contacting the team. Customer service is outstanding. I would recommend this firm to family and friends.
Sohaib Ashraf
2019-07-23
Excellent firm to deal with. They really take an interest in your questions and make sure they are answered properly.
pavan kumar
2019-05-14
Best service customer from last 10 years
S Bala
2019-05-11
The staff are very attentive and always keen to understand the problem and solve it professionallyFor my business knowing it is properly seen to is crucial and I always get this assurance from Mmba
Ashfaque Hussain
2019-02-13
I found MMBA very professional and personalised. They have looked after my company and personal Tax matters for last 3 yrs, very efficiently and in timely manner. They have dealt with all the correspondence from company house and HMRC in a profgessional manner. I have no hesitation in recommending them to anyone who want their Tax matters to be looked after properly.
James Stevenson
2019-02-12
Very thorough in their work and quick to respond to any calls or emails. A professional team who helped tremendously when getting my business off the ground and growing.
MMBA’s Legal Accounting FAQS
Do you need an accountant for your Legal Firm?
The size and complexity of your firm, your specific needs, and your financial expertise are the factors that decide whether you need an accountant for your legal firm or not.
How can you maintain accounting accuracy?
To ensure the financial health and integrity of your business, you must maintain accounting accuracy. Some essential steps you must follow to ensure accounting accuracy are using reliable accounting software, segregating duties, reconciling regularly, double-checking entries, documenting transactions, using control accounts, performing regular audits, tracking fixed assets, budgeting and forecasting, employee training, and maintaining backups and security.
Do you have to keep Batch Reports from Online Banking Transactions?
Some of the best accounting software for startup law firms are Quill Legal Booking System, Inside, Leap Legal, Clio Legal Software, and Action Step.
Name some of the best accounting software for startup law firms
Some of the best accounting software for startup law firms are Quill Legal Booking System, Inside, Leap Legal, Clio Legal Software, and Action Step
Should you hang on to supporting documents while using online accounting for your law firm in the UK?
Online accounting software and systems are efficient and convenient for managing financial records in the UK. However, it is always advisable to retain supporting documents while using online accounting software for your law firm because they serve as essential evidence and backup for your financial transaction. They are also crucial for legal and regulatory compliance.
What are trust accounts?
Trust accounts are specialized financial accounts used to hold and manage funds or assets on behalf of other property and the beneficiary under specific legal and fiduciary obligations.
Is it okay to have a single account for personal and business transactions?
Technically, it is possible to have a single bank account for both personal and business transactions. Still, it is generally not recommended because it can pose legal and tax issues, recordkeeping and accounting challenges, limited liability protection, lack of sense of professionalism and credibility, banking inconvenience, and difficulty in producing a clear audit trail.