Trust and office separation
Keep trust money, controlled money, transit money and operating records clearly separated so bookkeeping does not blur compliance boundaries.
Professional services accounting
Accountants for law firms in Brisbane
Law firms need clear records around trust money, operating accounts, WIP, disbursements, partner drawings, payroll, GST and cash flow so compliance pressure and management reporting stay under control.
What usually matters
Industry-specific accounting issues to make visible.
The first appointment is used to understand which of these issues is most urgent, then any paid work is scoped clearly.
Trust account, controlled money and operating account separation
Monthly trust reconciliations, external examination readiness and matter records
WIP, disbursements, billing rhythms and debtor collection visibility
GST treatment for legal fees, recoveries and principal-agent disbursement questions
Partner drawings, tax instalments, payroll and superannuation records
Matter profitability, staffing cost and cash-flow reporting
Accounting focus
Accounting priorities for law firms.
These are the practical records and decisions that usually make the biggest difference when the accounts are reviewed.
External examination readiness
Maintain matter ledgers, receipts, payments, reconciliation reports and supporting documents so trust records can be reviewed without a scramble.
WIP and debtor visibility
Track WIP, billing cycles, recoverable disbursements and debtor ageing because cash flow often depends on conversion timing rather than headline revenue.
GST and disbursements
Separate professional fees, recoveries, court filing fees, counsel, searches and principal-agent disbursement questions before BAS is prepared.
Partner and owner reporting
Review drawings, tax instalments, staff costs and matter profitability before partner decisions are made.
Practice management systems
Connect law practice software, accounting software, payroll and bank reconciliations so reports are not rebuilt manually every month.
Industry guide
Specific accounting areas to review before problems become expensive.
These points are written for the way this industry operates in Australia, so the accounting conversation starts with the real records, risks and decisions involved.
Trust accounting is separate from normal bookkeeping
A law firm cannot treat client trust money like ordinary business cash. Trust money, controlled money, transit money and office money need separate records, separate bank treatment and clear matter-level documentation. The operating accounts can be profitable while the trust records are still a compliance problem if the two areas are mixed or reconciled late.
Oceania ANZ can help the firm make the accounting records, office bookkeeping and management reports clearer. This does not replace legal-practice trust-account obligations or the external examiner, but it can make the financial workflow less fragile.
- Separate office bank accounts, trust bank accounts and matter-level trust ledgers.
- Keep trust receipts, payment authorities, transfers, bills and client matter references easy to locate.
- Avoid coding trust money as income, disbursement expense or owner drawings in the office accounts.
- Make monthly trust reconciliation and office reconciliation two distinct review processes.
Monthly reconciliations and external examiner readiness
Queensland law practices need trust records that can withstand external examination. That means the accounting workflow should preserve the trail between client matter, trust receipt, trust payment, transfer to office, issued bill and bank reconciliation.
Small firms often get into trouble when the trust-account process depends on one person, old spreadsheets, delayed bank reconciliations or unclear approvals. A practical accounting review looks at how the records are created, who checks them and whether the office accounts tell the same story as the practice-management system.
- Review monthly trust bank reconciliations and unmatched items before they age.
- Keep matter ledgers and office ledgers separate but comparable.
- Prepare external examiner support packs from normal records instead of recreating them at year end.
- Check whether backups, access controls and approval trails are strong enough for the practice size.
WIP, debtors and matter profitability
A law firm can be busy and still have weak cash flow. WIP that is not billed, bills that are not collected, disbursements that are not recovered and partner drawings that ignore tax instalments can create pressure even when fee earners are fully loaded.
The accounting system should show WIP, debtors, recoverable disbursements, write-offs, staff cost and partner drawings in a way that supports pricing, staffing and billing decisions.
- Track WIP by matter, practice area, fee earner or partner where the firm needs visibility.
- Separate recoverable disbursements from ordinary overheads.
- Use debtor ageing and collection reports before cash-flow pressure reaches payroll or tax payments.
- Review write-offs and discounting so matter profitability is not overstated.
GST, disbursements and principal-agent questions
Legal practices often handle filing fees, search costs, counsel fees, expert reports and other client-related costs. Some are ordinary firm costs recovered from the client, while others may require principal-agent treatment. The GST and BAS result depends on the facts and the paperwork.
The safest accounting setup is one that does not hide every recovery in the same income or expense account. The firm should be able to identify legal fees, GST on fees, recoverable disbursements, trust transfers and non-GST items without rebuilding the ledger manually.
- Separate professional fees from recoveries and disbursement accounts.
- Review GST coding for court fees, searches, counsel, experts and client reimbursements.
- Check that bills, trust transfers and office receipts match the BAS treatment.
- Flag uncertain GST treatment before BAS lodgement rather than fixing it at year end.
Partner drawings, tax instalments and payroll
Owner drawings, partner distributions, PAYG instalments, payroll, superannuation and BAS timing need to be planned together. A firm that only reviews profit after year end can leave partners surprised by tax payments or short-term cash pressure.
Payroll should also be useful for management. Solicitors, paralegals, legal assistants, administration and practice management roles can be tracked against practice areas or cost centres where the firm needs better decision-making.
- Forecast tax instalments, BAS, wages, superannuation and drawings before partner distributions are set.
- Separate fee-earner and administration payroll where matter profitability needs it.
- Review STP, superannuation and leave records as part of monthly finance discipline.
- Use management reports to compare practice areas, not just total firm revenue.
Relevant services
Services for law firms.
These services can be combined once the records, payroll process, software setup and reporting priorities are understood.
Business tax and annual accounts
Connect annual accounts with partner drawings, tax instalments, WIP, disbursements, office records and operating performance.
BAS, GST and bookkeeping
Review office reconciliations, GST treatment, disbursements and BAS records without mixing them with trust money controls.
Payroll, STP and superannuation
Review solicitor, paralegal, administration and practice-management payroll records alongside superannuation and STP reporting.
Cash flow and management reporting
Make billing, debtors, WIP, wages, tax commitments and partner drawings visible before cash becomes tight.
Xero, MYOB and accounting systems
Connect law practice software, accounting records, payroll, bank feeds and reporting workflows.
Free online strategy session
Book a Free Online Law Firm Accounting Strategy Session
We will review your current law firm financial setup, identify gaps in your office bookkeeping, trust-account readiness, WIP, disbursement, payroll or reporting systems, and show you how we would manage your law firm accounting going forward.
This free online consultation covers your business structure, current financial management approach, what proper law firm accounting looks like for your practice type, and what working with us would involve. No obligation, no sales pressure - just an honest conversation with accountants who understand legal practice accounting.
Book the free online strategy sessionFAQ
Questions before you book.
Can you review trust-account related bookkeeping?
Oceania ANZ can review accounting records and identify bookkeeping, reconciliation, office-account and reporting priorities around the trust-account workflow.
Do you replace a law firm external examiner?
No. The accounting support does not replace legal-practice trust-account obligations or the external examiner. It can help the financial records and office processes become clearer and easier to review.
Do you help with law firm cash flow?
Yes. Forecasting can make WIP, debtors, wages, tax, supplier payments, partner drawings and disbursement recoveries easier to plan.
Can you help with GST and disbursements?
Yes. The review can identify where GST coding, recoveries, disbursement accounts and BAS preparation need closer attention.
Can you support small legal practices?
Yes. The pages and enquiry process are designed for small to medium Brisbane operators.
Book an appointment
Talk through your law firm accounting question.
Share a few details and Oceania ANZ can help identify the practical first step for accounting, bookkeeping, payroll, BAS, cash-flow or software support.