Client & matter billing
Bill by client and by matter, so each engagement carries its own fees, disbursements, and profitability instead of blurring into one firm total.
Law firms & legal practices · UAE
Accounting software for UAE law firms
Bill by client and matter, manage retainers, keep client funds separate, and file VAT — all in one place. AIMuhaseb gives UAE legal practices clean books and matter-level profitability partners can trust.
Money you have earned, and money you only hold
A legal practice’s books have to answer questions most businesses never face. Which matter is actually profitable once you strip out disbursements? How much of a client’s retainer have you genuinely earned? And, critically, which balances are your fees versus money you merely hold on a client’s behalf? Blur those lines and both your reporting and your professional standing are at risk.
AIMuhaseb is built to keep them clean. You bill by client and matter, hold retainers as liabilities until earned, keep client funds separate from firm income, and apply the right VAT treatment to fees and recharged disbursements — with an AI assistant handling routine categorisation so fee-earners can bill accurately without becoming bookkeepers.
What you get for your practice
The workflows a UAE law firm needs — from the matter to the tax return.
Retainers & advance fees
Record retainers and advance fees as liabilities you have not yet earned, then draw them down against invoices as work is delivered.
Client-account separation
Keep money held on behalf of clients clearly separate from firm income in your books, so client funds are never mixed into your own revenue.
VAT on legal services
Apply the standard 5% VAT on your legal fees, handle recharged disbursements correctly, keep input VAT on costs, and generate a VAT 201 from the ledger.
Disbursements & WIP
Track unbilled time and disbursements as work in progress on a matter, so what you have earned but not yet invoiced is visible.
Partner-ready reporting
Live Trial Balance, P&L, and Balance Sheet update with every entry, giving partners a real-time view of firm performance and matter profitability.
From matter to filed return
A clear billing-to-books rhythm.
01
Set up your practice
Add your TRN, fiscal year, and a UAE chart of accounts with fee income, disbursements, retainer, and client-account lines in place.
02
Open clients & matters
Record each client and matter so fees, disbursements, and retainers are tracked against the engagement they belong to.
03
Bill & draw down
Raise fee invoices, recharge disbursements, and draw retainers down as work is delivered, keeping client funds separate.
04
Report & file
Review matter profitability on the live P&L, then generate a VAT 201 and IFRS statements for filing and Corporate Tax.
Why UAE law firms choose AIMuhaseb
Matter profitability, retainers held correctly, and client funds kept separate — so partners see the real numbers. Explore related tools and industries:
- Billing by client and by matter for true engagement profitability
- Retainers and advance fees held as liabilities until earned
- Client funds kept clearly separate from firm income in the books
- Correct VAT treatment of fees and recharged disbursements
- Work-in-progress visibility on unbilled time and disbursements
- Partner-ready IFRS statements generated straight from the ledger
Law firm accounting questions
Can AIMuhaseb bill by client and by matter?
Yes. You can record each client and each matter and bill against them, so fees and disbursements attach to the engagement they belong to. That gives you profitability per matter and per client rather than a single undifferentiated firm total — the view partners need to see which work is actually worth doing.
How are retainers and advance fees handled?
A retainer or advance fee is money received before the work is earned, so AIMuhaseb records it as a liability on your Balance Sheet rather than as immediate revenue. As you deliver work and raise invoices, you draw the retainer down against them. This keeps your income recognition honest and shows clearly how much of each client’s advance remains.
Can it keep client-account money separate from firm money?
Yes. Money you hold on behalf of a client can be tracked in accounts that are kept distinct from your own fee income, so client funds are never mixed into firm revenue in your books. Where your practice is subject to specific client-account or trust-account rules, confirm the exact handling requirements with your regulator or professional adviser and structure your accounts accordingly in the software.
How is VAT handled on legal fees and disbursements?
The platform applies the standard 5% VAT on your legal fees and records the input VAT on your costs. Recharged disbursements need care — some are true disbursements passed on outside the scope of your supply, others form part of your taxable service. AIMuhaseb lets you record each correctly and produces a VAT 201 from the ledger; confirm the treatment of a specific disbursement with your tax adviser or the FTA.
Can I see unbilled work in progress?
Yes. Unbilled time and disbursements can be tracked as work in progress against a matter, so you can see what has been earned but not yet invoiced. That helps partners manage billing cycles and cash flow rather than discovering unbilled work at year end.
Do we need an accountant to run it?
No. AIMuhaseb uses proper IFRS double-entry bookkeeping behind the scenes, and the AI assistant suggests account categories and drafts journal entries for you to review and approve. Your practice stays in control of what gets posted.
Enquire
Talk to us about your law firm
Tell us about your matters and billing and what you need — client/matter accounting, retainers, client funds, VAT, or the full back office. A UAE specialist will get back to you shortly.