If any of these describe your week, you are not alone — and you do not have to keep doing it yourself.
You have done the work. You have not invoiced it yet. Until WIP is tracked, your revenue is understated and your pipeline is a guess.
Lawyers and some consultants hold client funds in trust. Trust account reconciliation has specific statutory requirements — and the penalties for non-compliance are severe.
In a partnership, the line between salary, drawings, and profit distribution affects tax, super, and cash flow. If it is not tracked correctly, nobody knows what anyone actually took.
Every item below is done by our team and reviewed by your CPA. You do not touch any of it.
WIP is visible. Trust accounts are compliant. Partner drawings are tracked. And your monthly report shows firm performance by partner, by practice area, by month.
“They found $180K in unbilled WIP in the first month. We had done the work — we just had not invoiced it.”
— Law firm partner, Sydney CBD
PSI rules apply when more than 80% of your income from a contract is for your personal skills or efforts and you fail at least one of four ATO tests (results test, unrelated clients test, employment test, business premises test). If PSI rules apply, certain deductions are denied and income cannot be split through a trust or company. We assess your situation and structure accordingly.
Professional firm valuations typically use a multiple of recurring fees or a capitalised future maintainable earnings approach. Key variables include client retention, referral dependency, partner-specific goodwill, and work-in-progress. We build valuations that both buyer and seller can rely on.
It depends on your marginal tax rate, super requirements, and the partnership agreement. A combination of salary (which attracts super) and distribution (which may be more tax-efficient) is often optimal. We model the scenarios with your actual numbers.