Professional Practices

Essential COFA tips for stronger financial compliance

Ensuring compliance with the SRA Accounts Rules can be daunting, especially for COFAs without an accounting background. While theoretical guidance is available, many firms struggle with practical implementation.

Claire Watkins shares essential, actionable steps to help you identify weaknesses, flag risks, and strengthen financial oversight within your firm.

Planning your path to Partner

Congratulations on reaching the milestone of becoming a partner! While it’s an exciting achievement, the transition brings a new set of challenges, from registering as self-employed to managing profit share, drawings, and tax reserving. We’ve outlined the essential steps to help you navigate the transition smoothly and set yourself up for success in your new role.

Leaving an LLP? Timing your final payout

Exiting an LLP can be a complex process, especially when it comes to your final payout. Many LLP agreements base a departing partner’s final profit share on the annual financial statements, which can cause delays. In this article, we explain how an interim payout, based on internal management accounts, followed by a final "true-up" payment, can speed up the process. We’ll also provide insights on updating your exit clauses to allow for this flexibility.

Partnership planning: considering partner

We've launched our new series, 'Partnership planning', exploring considerations and challenges through the partnership lifecycle and how you can set yourself up for success at each stage. The first in the series highlights the benefits and risks to consider when considering becoming a partner at your firm. 

Small companies set to disclose more information

Under the new Economic Crime and Corporate Transparency Act 2023, all companies must include a profit and loss account disclosing their turnover, aggregate expenditure and profit. While a timetable is yet to be set for these changes to come into practice, it might be sensible to start preparing ahead of time.

Safeguarding your clients’ money

While the Solicitors Regulation Authority Accounts rules have been designed to protect client money, the responsibility still falls on law firms to implement the appropriate processes and procedures to protect client money and prevent fraud. Our recent article explains how to enhance your internal control environment.

Questions to ask before you're appointed Partner

Many senior associates and salaried partners will be considering the impact of a move away from employment and into self-employment over the coming months as professional practices appoint new equity and fixed share partners at the start of their next financial year.

From a financial perspective, here are some questions you might want to consider before making the move.

SRA Accounts Rules: A Focus on Rule 3.3

If you’re managing client accounts at a law firm, it's crucial to pay close attention to the SRA Accounts Rules—especially Rule 3.3, which covers the "Improper use of client account as a banking facility." This rule is designed to safeguard the integrity of client accounts, ensuring they are used exclusively for transactions directly related to the legal services you're providing. Understanding and adhering to this rule is essential for maintaining compliance and protecting your firm’s reputation

Thinking about changing your financial accounting software?

Professional practices are increasingly challenged to stay ahead with the right tools. As financial software continues to advance, selecting the most suitable system is more critical than ever. We’re often asked whether there is one particular name we would recommend. However, this is a difficult question to answer because every business has  slightly different requirements. 

With this in mind we’ve collated five key things you should consider when thinking about changing your financial software.

Partnership planning: promotion to partner 

The second in our 'Partnership planning' series explores the considerations for senior associates and salaried partners looking at the move into self-employment in professional practices.

Find out what you should consider before taking the leap in our latest article.

Basis period reform - the end of overlap profits for the self-employed

From April 2024, sole traders and partnerships will move to a tax-year basis of assessment, meaning profits will be taxed as they arise within the tax year, rather than based on accounting periods. While this simplifies things in the long run, the transitional year could mean additional tax liabilities, compliance complexity and cashflow pressures. Our article outlines how the changes will affect your business and how you can prepare effectively.

The new merged R&D scheme

A new R&D scheme has been introduced to simplify R&D tax credits. Under the new scheme, contractors are excluded from making a claim. This is likely to impact architects, engineering consultants, and technical consultants who are brought in to provide specialist skills on a project.