A lawyer should look for an accountant who understands law practice trust accounting, the ATO’s rules on how profits from a professional firm are allocated, and the structures law practices commonly use. Beyond technical fit, look for a chartered or Registered Tax Agent credential, regular planning contact through the year, and someone who explains the numbers in plain language.
Trust accounting deals with client money your firm holds on someone else’s behalf, such as settlement funds, retainers or conveyancing deposits, and is governed by the Legal Profession Uniform Law and overseen by the Law Society. Regular business accounting deals with your own firm’s income, expenses, tax and payroll, under the ATO and ASIC. The
How is trust accounting for a law firm different from regular accounting? Read More »
A law firm needs a specialist accountant because legal practices carry compliance and structural requirements that general accountants rarely handle day to day. These include trust account reconciliations and the external examinations required under the NSW Legal Profession Uniform Law, disbursement treatment, WIP and lockup management, partner-level tax planning, and the structural choices specific to
