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Accounting and Bookkeeping Problem Faced by Businesses in the Legal Practice Industry

The legal practice industry has a multifaceted area of practice. Your area of practice can be corporate, litigation, criminal, annulment, or anyone from the long list of practices. Still, you must understand that accounting and bookkeeping are vital for your organisation as it is for any other business in a different industry. While law firm accounting procedures are not a core function for your law or legal practice, it is an unavoidable and time-consuming process. The legal practice industry has multiple accounting and bookkeeping challenges, which are -

Law firm chart of accounts

Every individual client has individual funds related to settlements, retainers, escrow funds, and so on. These funds must be handled so that every individual's fund is distinct while keeping the law firm's fund separate to avoid any error in charts of accounts.

Matter Cost Accounting

Matter costs, that is, the cost incurred on individual clients, is a minor part, but it is vital. For example, reimbursable cost shows up on the Profit & Loss Statement while advanced client costs appear on the Balance Sheet. It is essential to record the right amount to accurate books of accounts.

Separate Billing & Accounting Systems

Law firms generally use two separate systems for their accounting and billing. It is essential to integrate this two as a failure might result in errors like billing issues, data duplication, missed revenue, or more considerable chaos like legal accounting non-compliance.

How Do Whiz Consulting's Legal Accounting Services Help You Tackle these Issues?

As a law and legal professional, you can focus on what you do best while you can rely on Whiz Consulting for accounting and bookkeeping services for legal practices & lawyers. With our legal accounting services, we help the law and legal practice organisations to serve their clients better without taking the headache of accounting. Our professional accountant will help with your legal practice's accounting, bookkeeping, and tax administration.

Our expert will perform all the accounting services for law firms to help your business function seamlessly. We assist with matter cost funding helping to produce accurate financial reports whenever required without any delay. You can hire our complete legal accounting services or just legal bookkeeping services per your firm's requirement. We also keep up to date with all technological advancements to help you integrate multiple accounting software for increased productivity.

Accounting & Bookkeeping Services We offer at Whiz Consulting

Bookkeeping Service

We provide the following bookkeeping services –

  • Bank & Credit Card Reconciliation
  • Accounts Receivable & Payable Management
  • Payroll Calculation & Tax Payments
  • Inventory Management & Reconciliation
  • Monthly Financial Statements
  • Financial Ratios Reporting
  • Budgeting Quarterly/Yearly
  • Cash/Revenue/Expenses Forecasting
  • KPI Reporting
  • Strategic Advice on managing revenue, expenses, cash flow
  • HMRC VAT Filing
  • Preparing & Planning for taxes
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Accounts Payable

We provide daily, biweekly, or weekly Accounts Payable reports as per your requirement. This ensures that you never breach payment terms with your clients. Our outsourced accounting service covers the scanning of invoices to make sure payment terms and so forth that adhere to your company policy. We will make certain things are exactly as they should be, and it is our responsibility to raise a red flag with you when they are not.

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Accounts Receivable

Accounts Receivable is a vital part of any business; without it, you cannot expect your business to sustain, let alone talk about growing. You need to be sure how much you must receive from your debtors and how much others owe you while ensuring this is done promptly to keep that cash flow moving. We remind our clients of the overdue payments or by contacting the debtors directly on the client's behalf to ensure that our clients receive money from the debtors, which is done in time.

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Financial Reporting

We know exactly what is needed for UK Accounting and the requirement of regulatory bodies, and we can produce the same for you as we have years of experience working with UK clients. This includes Periodic Reports, Income Statement Analysis, Profit & Loss, Balance Sheet, Ratio Analysis, and much more. We also connect with you chartered accountant and make sure everything is there as, and when he wants, you can trust us with your financial reporting requirements and make sure you adhere to all UK GAAP standard.

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Payrolls

Whiz Consulting's outsourced payroll services include receipt and analysis of payroll data, reporting the payment of payroll taxes, issuing payment and reports to employees, and reporting data to end-user. We look after biweekly, weekly, or monthly payrolls for our clients, including PAYE, Pension Contribution, National Insurance, Tax Calculations, HMRC, and Deductions, along with emailing of salary slips to employees. Let us help you by keeping a vigilant eye on the complete payroll activity for your business with our online accounting service.

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TAX Filing

With our team of experts, we will take care of all tax compliance like VAT, HMRC, etc. With our experience handling United Kingdom accounting and bookkeeping, we can prepare and lodge your tax returns for any business. We also provide tax advisory services and assist our clients in planning tax liability in the most efficient way.

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Why Hire Legal Accounting Services From Whiz Consulting?

Whiz Consulting provides accounting and bookkeeping for the legal practice industry in the UK, irrespective of your area of practice. If you are looking for accounting & bookkeeping services for legal practices & lawyers, here is why you should choose us –

Maximise Automation

We use sophisticated accounting and bookkeeping software to ensure that your finance is error-free and is always up to date with existing practices.

Decade long Experience

Our highly experienced team will provide you with integrated bookkeeping and accounting systems, increasing productivity and smooth functioning.

Reduction in cost

Hiring an expert or a local bookkeeper and accountant will cost you 70% more than hiring our service, where you will have a pool of resources under one roof.

Business Growth

While we take care of your vital function, you can focus on serving your client with the best legal service possible, thus helping you bring scalability.

Boundless Consultation

Our experts are available for boundless phone and email consultations, and we can modify a plan for you based on your particular business needs.

Consistent Report

We provide regular detailed reports of all the invoices that are processed, along with the status of your invoices and reconciliation summary statements.

Frequently Asked Questions (FAQs)

Accountants are needed in almost every business, including law firms. The primary responsibility of accountants at law forms is tracking, recording, and analyzing financial transactions related to the business of the law firms in an accurate way. Law firms need accountants to prepare their financial statements in compliance with the law to present a just and correct firm image. A professional accountant can help manage the revenues ethically and offer peace of mind so that the businesses can focus on their primary activities.
The cost of hiring a legal accountant can change based on the location of the firm, amount of work, and complexity of the work. For example, London has more competitive prices, and thus the cost of hiring an accountant here will be higher than a city outside London, where they offer high-quality services at a cheaper rate.
Most legal accountants charge for their services monthly, but some also charge hourly or based on each service they provide. The average cost for hiring legal accounting services is approximately £37,855 per year.
Accountants in a legal firm have several duties and responsibilities that they need to fulfill, such as:
• Financial data management- The primary responsibility of an accountant is to manage the financial transactions of the law firm. Accountants record these transactions and prepare the financial statements for the firm. The financial statements include payroll expenses, the payment received from clients, etc.
• Offering financial advice- Accountants prepare the financial statement and reports regarding the firm based on those statements. Keeping in mind the incomes and expenses of the firm, accountants can offer financial advice to help in business planning. This advice can help make decisions regarding taking loans, outsourcing services, etc., and deal with any related financial discrepancies.
• Tax filing- Tax filing is one of the most basic and essential tasks that an accountant can perform for a law firm. A professional accountant makes sure to file the taxes of the law firm accurately and on time while following the compliance requirements. Tax filing is a complicated process and can lead to penalties if not done accurately.
• Dealing with third parties- Third parties include banks, taxation authorities, etc. The accountant represents the law firm in front of these third parties and relieves pressure from other members so that they can focus on their primary work.
• Overseeing the payroll process- Payroll is an integral part of a business and must be managed ethically and accurately. An accountant oversees the entire payroll process and other employee-related financial aspects.

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