Professional services accountancy in Northern Ireland
Professional services firms run on partner time, WIP, and reputation. The accountancy is partnership-heavy: profit-share waterfalls, partner capital accounts, work-in-progress that ties up cash, and tax positions that vary widely between equity partners, fixed-share partners, and salaried partners. We work with solicitors, architects, surveyors, and consultancy firms across NI.
Talk to us about professional servicesPartnership profit sharing is the engine of a professional firm. Equity partners take a profit share based on the partnership deed. Fixed-share partners get a guaranteed amount plus often a small profit slice. Salaried partners get PAYE but might be partners in name. Each has different tax and pension consequences. We handle the calculations, the partner tax computations, and the salaried-partner versus self-employed analysis HMRC keeps revisiting.
Work-in-progress is where many professional firms under-invest in accounting discipline. Time recorded but not yet billed is an asset on the balance sheet, but only at recoverable value. Overstating WIP overstates profit. Understating it understates current performance. We set up the discipline of monthly WIP review with the relevant partner, so the year-end position reflects reality and the tax bill is right.
We work with solicitors’ practices (sole practitioners through to multi-partner firms), architects (RIBA and RSUA members), chartered surveyors (RICS members), management consultants, marketing and creative agencies, and recruitment firms. The shape varies; the accountancy structure does too.
What professional services businesses ask us
Partnership profit-share calculations
Deed application, waterfalls, and partner tax positions including fixed-share and equity partner differences.
Work-in-progress valuation
Recoverable value discipline, not just hours recorded. Monthly review with the responsible partner.
Salaried partner vs self-employed
The recurring HMRC challenge under the salaried-member rules and the structures that hold up to scrutiny.
Client Account compliance
For solicitors, the Solicitors’ Accounts Regulations and the annual Accountants’ Report (AR1).
Partner capital and drawings
Keeping individual partner positions accurate through the year, not reconciled in a year-end scramble.
Frequently asked about professional services accountancy
How do I structure a salaried-partner arrangement that HMRC will not challenge?
HMRC has been actively challenging arrangements where salaried partners are effectively employees. The salaried-member rules apply three conditions broadly looking at disguised salary, significant influence, and capital contribution. We help structure agreements that meet at least one of these conditions genuinely, not just on paper.
How is WIP valued for accounts and tax?
At the lower of cost and net realisable value, per FRS 102. Cost includes time recorded multiplied by chargeable rates, less an estimate of irrecoverable time. We review WIP with the responsible partner monthly so the year-end is not a surprise.
Do you prepare the Solicitors’ Accounts Regulations Accountants’ Report?
Yes. We complete the AR1 form annually for solicitor firms within scope, including the Client Account reconciliation review.
Can you handle the partner tax returns too?
Yes. Partner returns are part of the standard service for professional-firm clients, with the partnership return and individual returns prepared together so the numbers reconcile.
Talk to an accountant who understands professional services in NI
15-minute call. No commitment. We will answer your questions and outline how we work with professional services businesses across Northern Ireland.
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