Law firms, consultancies, and service businesses face unique billing and profitability challenges. Here's how we help you navigate them.
Tracking billable hours, client-wise profitability, managing retainers, and ensuring accurate invoicing across multiple projects.
Distributing profits among partners, tracking capital accounts, managing draws, and maintaining partnership agreement compliance.
Client engagement budgeting, tracking costs per project, work-in-progress valuation, and margin analysis by service line.
Monitoring billable vs non-billable time, improving collection rates, and tracking write-offs and billing adjustments.
Reverse charge mechanism on legal and professional services, export of services benefits, and place of supply determination.
Retainer vs time-based billing, recognizing revenue for long-term engagements, and managing advance payments from clients.
Comprehensive financial management for law firms, consultancies, and service businesses
Specialized accounting for law firms, consulting practices, and advisory businesses
Trust accounting, client retainers, matter-based billing
Project costing, engagement profitability tracking
Partner agreements, profit-sharing models
Utilization rates, realization rates, WIP aging
Rate card analysis, discount tracking, write-off management
Partner buy-in/buy-out structuring, retirement planning
Consultants, lawyers, architects and agencies earn fees from a few clients who deduct TDS. Getting income recognition, credits and entity choice right can change the tax paid every year.
Eligible professionals below the prescribed receipts limit can declare income on a presumptive basis (Section 44ADA under the 1961 Act) without maintaining detailed books. It simplifies filing, but it limits claims for actual expenses and may not suit a growing practice.
Clients deduct TDS on professional fees, and the credit appears in Form 26AS and AIS. Differences in amount or year between your invoices and the client's deduction need follow-up before you file.
Professionals providing services above the registration threshold must register. Services to overseas clients may qualify as exports, while services to clients in other states are subject to IGST.
Firms with several partners need to consider partner remuneration, interest on capital and profit sharing as they apply to tax. A change from a firm to an LLP or company has its own consequences.
Out-of-pocket expenses charged to clients may form part of the taxable value, and some can be treated as pure agent expenses. Treatment depends on the contract and how the costs are billed.
Fees in foreign currency require correct exchange rate treatment, and receipts must be realised within the time allowed under foreign exchange rules. Documents such as FIRC are useful in support.
We keep the finance function light for practices that have no in-house accountant. Estimate your liability with our income tax calculator, or check the deduction on a fee with the TDS calculator.
It is simpler, but you generally cannot claim actual expenses under the scheme. Where actual expenses are high or income is rising, regular books can be better. We compare both for you.
Clients may deduct in a different year, quote the wrong PAN or fail to file their TDS return. Ask the client to correct the return and keep your invoice and bank trail.
Once your aggregate turnover crosses the notified threshold for services, or where registration is mandatory in other cases such as certain interstate supplies. Check the current threshold on the GST portal.
Services exported under the conditions in the law are zero-rated. You will need to show that payment was received in convertible foreign exchange. The GST calculator helps with invoice workings.
Yes, within the limits in the income-tax law, and subject to the partnership deed authorising them. The limits should be checked when the accounts are prepared.