Management Accounts for Law Firms

Management accounts and management information provide the data you need to run your business.

Budgets, cashflow projections and monthly management accounts are crucial to knowing where you are and predicting where you’re going.

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The Cashroom’s real-time up-to-date ledger postings and daily bank reconciliations mean I can trust the management information data in my system and run my firm more effectively.

Toni Wensley

Partner, Amphlett Lissimore

Our management accounting services range from the production of simple quarterly management information to a full monthly reporting package including management accounts, profit & loss, balance sheet and cashflow projections, analysis of fees rendered and recovered, and capital and current accounts.

We have developed a standard reporting package that meets the requirements of the banks’ annual review, and work closely with our clients’ accountants to produce information to assist with year end tax returns.

Information

We produce monthly or quarterly management information within a few days of the period end. We also help with preparation for year end accounts.

Budgets

We help track annual budgets and cashflow projections, and monitor actual results againt projections. We can also help prepare projections to assist with funding applications.

Analysis

Commentary and advice on monthly performance, along with fee and performance analysis.

Advice

We meet with partners to discuss results and interpret figures. We also offer advice in respect of VAT, employee benefits, employee bonuses, P11Ds and more.

Interested in a confidential chat?

We’d love to show you how the Cashroom could save you time and money, and ensure full compliance.

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FAQs

How do I find the right accountants for law firms?

Look for professionals with experience in the legal sector, a strong understanding of client account regulations (such as SRA or LSOS rules), and a proven track record of supporting law firms. At Cashroom, we work exclusively with legal practices, offering specialist expertise that general accountants often don’t provide.

What makes legal accounting different from general accounting?

Legal accounting involves specialised requirements such as managing client money in compliance with the Solicitors Regulation Authority (SRA) or Law Society of Scotland (LSOS) rules, handling complex billing arrangements, and maintaining strict separation between client and office accounts. Accountants working with law firms must fully understand these regulations and processes to ensure accurate, compliant financial management.

What are the benefits of outsourcing management accounts?

Outsourcing management accounts gives your firm access to expert financial insight without the cost of hiring in-house. It ensures accurate, timely reporting, supports better decision-making, and helps you track performance, cash flow, and profitability. At Cashroom, our legal finance specialists deliver tailored reports that keep you compliant and in control, freeing up time to focus on running your firm.

Is outsourced accounting secure for sensitive legal financial data?

Cashroom’s purpose-built secure portal eliminates email transmission of sensitive data. Our systems comply with industry security standards, and all our law firm accountants undergo rigorous confidentiality training to protect your information.

How does Cashroom handle client accounts for law firms?

Our specialist team ensures your client accounts remain fully compliant with SRA or Law Society of Scotland regulations. We follow rigorous reconciliation procedures, maintain accurate records, and provide detailed reporting to help prevent compliance breaches and give you peace of mind.

How can better accounting practices improve my law firm's profitability?

Professional accounting for lawyers provides clearer financial visibility, identifies inefficiencies, improves cash flow management, and enables strategic decision-making based on accurate data, all contributing to increased profitability.

What are common accounting mistakes law firms make?

Common issues include mismanagement of client accounts, poor tracking of disbursements, limited cash flow visibility, and delayed billing. Our specialist legal finance team helps prevent these problems through robust processes, regular oversight, and a clear understanding of regulatory requirements.

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