Starting a new law firm

Building a financially resilient legal start-up

Launching a new law firm—whether as a solo practitioner or a spin-off team from a larger practice—is a major commercial undertaking. Before you can open your doors, the SRA requires absolute proof that your new venture is financially viable. Poor cash flow planning and inadequate working capital are the most common reasons new practices fail to secure regulatory approval.

As the only accountancy firm working in partnership with the Law Society, Armstrong Watson provides ambitious legal professionals with the financial foundations required to launch successfully. We ensure your SRA application is watertight and that your firm is structured for profitability from day one.

Securing SRA authorisation

The regulator will scrutinise your financial preparedness. As a founding partner of Law Firm Ambition, we know exactly what the SRA expects to see. We support your application by providing:

• First-Year Financial Forecasts: We build detailed, realistic cash flow forecasts, profit & loss accounts, and projected balance sheets that satisfy SRA requirements.
• Working Capital Modelling: We help you accurately calculate your required day-one funding. We model the delay between undertaking work, billing it, and getting paid (lock-up) to ensure you have the cash reserves necessary to survive the crucial first 12 months.
• Entity Selection: We advise on whether you should launch as a Sole Trader, LLP, or Limited Company, structuring your new firm for maximum tax efficiency and risk protection.

Setting up your finance function

Once authorised, we help you implement robust financial controls. We advise on selecting SRA-compliant legal accounting software, train your new COFA, and establish the strict client account protocols required to protect client money.

Fixed-fee start-up packages

We understand that capital is tight when launching a new firm. We offer clear, fixed-fee packages for our SRA forecasting and start-up advisory services, ensuring you have the expert support you need without any unexpected costs.

Initial Assessment and Planning: Our assessment meeting and provision of our law firm start-up checklist is £1,865 plus VAT and disbursements, payable in advance.

Additional fees are agreed in advance following the initial meeting. All services are provided remotely via video conferencing; however, face-to-face options are available if required.