How do a Lawyer’s Accounting and Financial Needs Differ?
As with any professional career trajectory, the needs of a lawyer will change over time. What may commence as a simple annual tax return can swiftly progress into a much more complex undertaking. There may be tax effective structures such as discretionary trusts, companies and self- managed super funds to be established for investment and asset protection purposes. Each one of these beneficial identities will need tax returns prepared.
To this end, tax and cash flow planning is crucial. Tax planning is vital to reduce the amount of tax that would otherwise be payable, which can be safely strategized using a variety of techniques. Cash flow planning is also vital to ensure there is enough money set aside to pay the ATO in a timely fashion.
Strategies to Building Wealth
Setup Investment & Tax
Structures to Minimise Tax
Setup appropriate investment and tax structures to ensure tax minimisation and asset protection for the present and the future. Tax planning is vital to minimise the amount of tax that would otherwise be payable, which can be done through a variety of techniques.
Build an Investment Portfolio
that Suits your Risk Profile
You have the ability to pay off your mortgage quicker than most, and as a consequence can build your wealth through investing. This may be in property, shares, managed funds or even as a passive investor in a business. Make sure you invest in asset classes that suit your risk profile.
Invest with a Self-Managed
Invest in Term Deposits, Australian and International Shares or Residential & Commercial Property using your super money. Choose where you invest your money, rather than your industry fund choosing where your super money is invested. You benefit from direct control and flexibility over your investment decisions, helping you reach your retirement goals.
Have a Cash
Invariably, unless you are well disciplined, the cash that should be saved is spent. It may be prudent to leave the cash in an offset account if you have a bank loan to reduce the yearly interest expense. Cash flow planning is vital to ensure that there is enough cash to pay the taxman by the due date. Plan for your tax payments and if required, plan your cash flow for the family budget as well.
Calculate & Prepare for Your
Future Tax Liabilities
Calculate your likely tax liabilities based on actual and anticipated income for the year so that you are well aware of your potential future tax liabilities. Timely preparation and lodgement of your tax returns to meet the ATO lodgement deadlines ensures you’ll be making the correct distributions annually and remaining compliant with ATO guidelines.
Ensure You and Your Family
are Financially Secure
Consider income/life insurance to protect your interests and assets and ensure your family is financially secure in the event of your premature death. Who do you want your personal assets to end up with? Who are the beneficiaries of your superannuation? Is your current insurance cover adequate? How will any debt be taken care of?
Book A Complimentary Meeting
Book An Obligation Free Complimentary Meeting With A Wilson Pateras Law Industry Expert
Leave it to our Law Professional Accounting & Tax Experts
A proactive, strategic financial plan specific to your career trajectory within the legal category:
one that looks beyond mere taxation compliance with a focus on wealth management.
General Legal Counsel
Wilson Pateras recommend that legal professionals seek expert guidance from accountants who understand their professional category and take time to appreciate their personal circumstances. Having this dual-faceted knowledge is key to creating premium outcomes for lawyers – that’s why Wilson Pateras’ accountants and advisors familiarize ourselves with our legal client’s career goals and financial aspirations. The legal career path is a unique one: any tax or wealth management strategy you might put in place should match with your professional objectives.
Engaging an expert lawyer-focused accountant advisor to review and discuss these matters ensures you’ll be making the correct distributions annually and remaining compliant with ATO guidelines. Doing so sooner than later allows your financial strategy to mirror that of your career progression.
Having worked with legal professionals at various stages of their career trajectory, Wilson Pateras know that consulting with expert accountants will only ever be to a lawyer’s benefit. Knowledge means the power of better decision-making, leaving you to progress your career with confidence – the aim of every lawyer!
Wilson Pateras can:
Plan your tax payments
Plan your cash flow
Prepare and lodge your tax returns
Manage all ATO correspondence
Ensure you meet compliance obligations
Recommend appropriate investment and tax structures
Setup and manage your super fund
Advise on investment classes that suit your risk profile
Advise on the appropriate insurance
Reduce the burden placed on your time