Beyond being a legal specialist, an advisor and a professional who best defends the interests of his client, a lawyer is also an entrepreneur, who is led to explore all the aspects related to his profession. In this sense, a lawyer does not escape the administrative obligations that apply to all self-employed people, such as accounting for example. Together we will go through the accounting obligations that apply to the profession, as well as the best practices for automating your accounting as a lawyer.
The accounting obligations of lawyers: what are the rules?
As with all other entrepreneurs, the accounting and tax obligations of lawyers depend on the applicable tax regime. There are generally two types of plans used by lawyers to practice their independent activity:
- – micro-BNC regime
- – BNC regime in controlled declaration
Accounting for lawyers in micro-BNC
The micro-BNC regime allows lawyers to benefit from simplified accounting and administrative obligations. Indeed, a lawyer under this regime (often an associate lawyer at the beginning of their career) is not required to close accounts at the end of the fiscal year, nor to submit a balance sheet to the tax authorities. However, a micro-BNC lawyer is required to maintain a revenue ledger. This ledger records all payments received, along with their details (the amount of fees, the method of payment, the date, etc.).
The accounting of a micro-BNC lawyer is not limited only to keeping this book. As a professional, a lawyer has the obligation to issue quotes and invoices to his clients. Whether the micro-BNC lawyer invoices fees to his firm or to his own clients, an invoice is required for each service. Moreover, these tasks can prove to be the most repetitive.
The other administrative aspect for micro-BNC lawyers concerns VAT returns. A lawyer exceeding certain revenue thresholds (€44,500 and €55,700) becomes liable for VAT. Being subject to VAT for a micro-BNC lawyer means they are required to file VAT returns monthly or quarterly, depending on the chosen tax regime.
Accounting for lawyers in controlled declaration
The accounting of lawyers in controlled declaration is more complex than that of lawyers in micro-BNC. Indeed, controlled declaration lawyers have a legal obligation to keep complete accounts (commitment or cash flow, as desired). Accounting requires:
- – the transmission of annual accounts to the tax administration every year (balance sheet, income statement as well as annexes). We are talking about the famous 2035 declaration
- – keeping an accounting book which must list all the flows of the lawyer's activity, classified in the correct accounting category
- – the obligation to keep all documents justifying activity flows (invoices, receipts, expense reports, purchase notes, etc.).
Being subject to VAT, a lawyer in controlled declaration must send his declarations to the tax authorities every month or every quarter (depending on the regime chosen).
In the same way as the micro-BNC regime, invoicing in accordance with legal standards is obligatory for independent lawyers practicing under the controlled declaration regime.
Our advice for not wasting time with accounting as a lawyer
As you can see, accounting and administration are no fun for lawyers. Fortunately, there are solutions to simplify your daily life as a lawyer and save time between client meetings, hearings and files.
Automate as many tasks as possible
1. Billing
To free up your time, consider adopting efficient billing software. Opt for software that allows you to create catalogs of recurring fees, expenses, and disbursements. As an associate lawyer, for example, you can then generate invoices for your firm in just two clicks for billing back your fees. This is precisely what Jarvis Legal offers . You can create your own predefined activity lists, which will save you considerable time when entering time and billing.
2. Management of supporting documents
Managing receipts is undoubtedly the most tedious part. If you're not used to doing your accounting as you go, you risk ending up with a mountain of accumulated invoices and receipts. To avoid being overwhelmed, consider using software that allows you to digitize receipts by taking photos or uploading them. This will encourage you to send your receipts to your accountant as they come in. Here too, Jarvis saves a lot of time by killing two birds with one stone: you can upload your receipts to the appropriate folder in your account, which will also automatically send them to Acasi to be integrated into your accounting system.
Delegate, you are not an accounting expert
Managing your accounting, VAT returns and balance sheet alone exposes you to errors and oversights. You are not an expert in accounting, so it is better to delegate all these legal obligations to experts whose job it is. Imagine the stress and anxiety of having missed the deadline for your balance sheet or VAT returns. Call an accountant who will take care of all this part for you. This will save you time, nerves and the mental burden that accounting represents for self-employed people. With Acasi, you have a coach dedicated to your file whose mission is to support you in all these steps.
Use modern solutions
As we said in the introduction, being a lawyer also means being an entrepreneur. This role implies a certain vigilance and, above all, anticipation regarding the management of its cash flow. This can be tedious if you are not equipped with the right tools. Adopt tools that allow you to avoid unpleasant surprises.
In short, managing accounting and administrative tasks can be tedious if you don't have the right tools. Does this mean you have to multiply your subscriptions and therefore your costs to remain efficient? No. Fortunately, all-in-one solutions exist to help you. For example, Jarvis and ACASI offer simple, intuitive tools that simplify your daily tasks. Acasi, the accounting firm for lawyers , is both an accounting application that automates all your accounting tasks to help you every day and a chartered accounting firm, registered with the French Institute of Chartered Accountants (Ordre des experts-comptables), to handle all your legal obligations. Currently, thanks to the Jarvis x Acasi partnership, you benefit from a 10% discount on all their offers.
Go for it!