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 trusts, companies and super funds to be established for investment and asset protection purposes.
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 strategised using a variety of techniques. The importance of having a good accountant that understands your industry is crucial. Wilson Pateras specialise in Accounting and Financial services for barristers. We will help you transition and setup your practice and become your long-term financial support.
Key accounting and financial areas that should
be considered when becoming a barrister
Setup your business
Now that you must operate as a Sole Trader, you need to setup an ABN and register for GST. You will need to lodge your quarterly BAS statements with the ATO ensuring to include the income you have received each quarter on a cash receipts basis.
Using an innovative cloud accounting system helps manage your bookkeeping, superannuation payments and financial records, giving you a dedicated focus to all of your business financials
Ensure you and your family
are financially secure
Consider risk insurances such as income protection and life insurance, particularly if you have young children or starting a family, to ensure you and your family are financially secure.
Plan and manage
your cash flow
Cash flow planning is critical to ensure that you have set aside enough cash to pay your tax. A common strategy is to leave cash in an offset account if you have a home loan to reduce the yearly interest.
Prepare for your
In the first year you will receive gross income, which means you will need to calculate your likely tax liabilities and put this aside. Timely tax preparation will ensure you make the correct distributions annually and remain compliant.
Setup investment strategies
to build your wealth
Build financial security through investing in asset classes that suit your risk profile. Setup the appropriate investment and tax structures to help with tax minimisation and build your wealth for the future.
Book A Complimentary Meeting
If you would like more information or to discuss this further please contact us
on 03 8419 9800 or book a meeting using the form below.
Expert lawyer focused guidance from accountants
that understand the law industry
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 familiarise 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:
Setup your business structures
Prepare and lodge your tax returns
Ensure you meet ATO compliance obligations
Recommend appropriate investment and tax structures
Manage your business records with our bookkeeping service
Advise on appropriate insurance
General Legal Counsel