We are specialized to manage accounting and tax services required by most Lawyers and Law practices. We offer a wide range of advisory services as accountants specialized in servicing lawyers in Toronto.
Accountant & Tax Specialist for Lawyers in Toronto
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Why Choose An Accounting Firm for Your Law Practice
For lawyers residing in the Greater Toronto Area, our firm specializes in providing accounting and taxation services that most lawyers often require. We are capable of managing everything from basic bookkeeping to preparing financial statements with various levels of assurance, as per our client's needs. While hiring our services, you can be sure of the fact that records or data regarding our clients is in good and capable hands. We have in place strict internal security measures that ensure our clients' data is always protected.
As accountants specialized in servicing the legal industry, our team is more than capable of ensuring that:
- Your books are being completed in accordance with The Law Society of Upper Canada's stringent requirements, to avoid any penalties that may risk your reputation
- Accurate and efficient bookkeeping at an affordable rate
- Transparent pricing
- A Chartered Professional Accountant who specializes in law firms
- Customized reports and filing of corporate and personal tax returns
We offer you not just our accounting expertise but also value without compromising on the degree of control you have over certain processes of your firm. When you entrust us with accounting and taxation for you and your firm you can focus on the areas of your law practice that matter the most, which is providing the best legal representation and solutions to your clients.
Accounting Services for Lawyers in Toronto
We do not think of you as just a client or file number but as a trusted friend and provide you accounting and taxation solutions unique to your business practice. We understand how crucial it is for corporations to comply with regulations set forth by the regulatory authorities like CRA and Ministry of Finance. We will ensure the compliance of all these regulations while you focus on running your law practice.
We can help you manage your own trust funds as well. Trust accounting can be rather confusing and complicated for those who are not specialized in this area of bookkeeping. We pride ourselves in our specialized knowledge in trust accounts and trust funds.
We can assist you in improving operational efficiencies from the accounting side of things. As your business practice grows, you might feel that accounting tasks are taking away your billable hours from your practice. We have dedicated bookkeepers who specialize in working with lawyers; thus they are well versed with the specific rules and most commonly used softwares to ensure that our client's bookkeeping records are accurate and completed on time.
Our team is just a call away from helping you walk through the process of buying or selling a practice. Our Chartered Business Valuators can provide you with a complete range of valuation services ensuring that you are being compensated fairly. Our accounting and taxation systems are well tested to maintain appropriate internal controls required by the law firms to manage their operations effectively.
Tax Specialists for Lawyers
We specialize in catering to the taxation needs of lawyers and can help in managing their taxes as well as accounting needs. No matter what kind of corporation they run or own, we can provide our clients with the best possible service.
Our team is well aware of the taxation rules that apply to the legal industry in Canada and can help our clients find tax relief where they can. Our taxation specialists can help devise a tax efficient compensation plan for our clients according to their needs.
Furthermore, our firm has a team of professionals who can help you incorporate your services and provide you with other advisory services like estate planning, year-end tax planning as well as the best way to buy or sell a capital asset.
Managed Back Office Services for Law Firms
1. Accounting Infrastructure Review and Process Implementation — Introduce team and assess current processes. Review and document detailed processes within accounting infrastructure including bookkeeping, accounts payable, accounts receivable and tax compliance. Assess and finalize software and 'app stack' to bring forth efficiencies in the accounting processes, provide automations where applicable, improve controls, etc. Provide logins and training to internal team members.
2. On-Going Monthly Managed Back Office Services — Monthly data entry and transaction review, bank account reconciliation, credit card expense identification, QuickBooks Online review, general bookkeeping support, management reports including key financial data, accounts payable support and payables management, pay vendors and contractors monthly, general accounting and bookkeeping advice, file HST and make tax payments, bi-weekly payroll processing and recording.
3. Senior Financial Management Services — Provide monthly financial reporting, performance against budget reports, help manage cash flow, participate in the budgeting and forecasting process, and coordinate with management team for ad hoc reports and advisory related to external fundraising requests.
Other Tax Benefits
In addition to the tax benefits received by incorporating your services, there is also more flexibility in how you pay yourself. A sole proprietorship gets taxed on earnings right when it is received whereas a professional corporation has the choice to defer taxes by leaving money inside the corporation until it is needed or until it is more beneficial from a tax perspective. Other methods of receiving favourable tax treatment is by employing a family member and paying them regular salary or paying dividends to yourself as a shareholder.
There are many tax saving opportunities available if a professional corporation is properly set up. Consult our team of tax specialists in Toronto to establish a corporation that meets all your needs. We will find the best methods to minimize taxes for you. Learn about self-employed tax returns Toronto.
Read about Tax specialist for dentists Toronto, Accountant for chiropractors Toronto, Accountant for lawyers Toronto
Tax Advantages for Lawyers
- Books completed in accordance with Law Society requirements
- Trust accounting and trust fund management
- Tax efficient compensation planning
- Incorporation and advisory services
- Estate planning and year-end tax planning
Watch this short video to learn more about choosing the right accounting firm for your law practice:
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SRJCA are specialized in providing excellent service to lawyers in the GTA. We ensure your books are completed in accordance with The Law Society. Whether you are a sole proprietor or have an existing professional corporation, we will expertly guide you on all your financial needs
SRJ Chartered Accountants has two conveniently located offices in the Greater Toronto Area.
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Client Success Stories
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Craig Gibson - Scotiabank
Abraham Top - Diamond and Diamond Lawyers
Shayan Rashid, CPA
Co-Founder
Shayan Rashid helps lawyers succeed through strategic advice in tax, accounting, and business growth strategies in Toronto and all across Canada. Shayan helps lawyers tackle complex financial issues so that they can better manage and grow their legal practice.
Junaid Usmani, CPA, CA, MTax
Co-Founder
Junaid Usmani ensures lawyers achieve success and growth in their legal practice through tax and business growth strategies. Junaid helps lawyers maximize their profitability by understanding complex financial and legal issues within the legal industry.
Tracie Heier, CPA, CA, MPAcc
Partner
Tracie helps lawyers manage their legal practice through accounting and tax services. Tracie has over a decade of experience and helps lawyers stay organized and financially strong so that they can better manage and grow their legal practice.
FAQ
Frequently Asked Questions
The reason lawyers require a specialized tax accountant is due to the fact that the legal profession has different tax considerations and regulatory requirements that are not similar to those of other industries. A professional accountant is aware of the personal tax deductions that are offered to law firms, the type of professional corporations, and the impact of the regulations of the Law Society of Ontario on financial reporting. Also, they are well-informed about the tax regulations on client trust accounts that come with compliance obligations. A dedicated tax accountant will aid lawyers to negotiate complicated tax policies, reduce tax burdens, and keep their accounting functions within industry regulations, whilst maximizing their financial performance.
Yes, tax planning for both solo and partnership law firms is handled. Whether you’re a solo practitioner or part of a law firm partnership, SRJ Chartered Accountants can provide tailored tax planning advice. For solo practitioners, we help with income splitting, corporate tax structuring, and retirement savings plans. For partnerships, we assist with profit sharing, compensation strategies, and ensuring that income allocation is managed efficiently to reduce the overall tax burden. SRJCA helps both solo practitioners and partners in Toronto structure their financials in a way that aligns with their business model and personal financial goals, while staying compliant with the applicable tax laws.
Lawyers can claim a variety of tax deductions related to their practice. These include office rent, utilities, supplies, and professional insurance premiums. Costs associated with client meetings, such as travel expenses, may also be deductible. Continuing legal education, membership fees for law societies or professional organizations, and advertising expenses for marketing the firm are deductible as well. Salaries and benefits paid to staff, including associates and administrative personnel, are also business expenses that can be claimed.
Yes, SRJ Chartered Accountants prepare financial statements for law firms. These statements are essential for providing an overview of the firm’s financial health and ensuring compliance with tax and Law Society regulations. Financial statements, including income statements, balance sheets, and cash flow statements, are prepared to reflect the true financial position of the firm. These statements are used for various purposes, including tax filing, securing financing, and providing insights into the firm’s operational performance. Regular financial statement preparation ensures that law firms maintain accurate, up-to-date records and meet their legal obligations.
Lawyers can reduce their tax liability through several tax planning strategies. One of the primary ways is by structuring the practice efficiently, such as incorporating a law firm to take advantage of small business tax rates and dividend payments. Income splitting, where income is divided between the lawyer and family members who work in the firm, is another effective strategy.
Lawyers should consult their tax accountant regularly to ensure their financials are in order and tax strategies are optimized throughout the year. Ideally, lawyers should have an annual consultation to discuss year-end tax planning, including tax filing deadlines, deductions, and capital investments. However, for ongoing financial health and to address any changes in business structure, quarterly meetings or monthly check-ins can be beneficial, especially for those with multiple practice locations or significant changes in income. Consulting frequently ensures that the firm is staying on track with cash flow management, tax planning, and regulatory compliance throughout the year.