Setting up your own firm is one of the biggest decisions a solicitor makes. Most of the work is about clients, premises and money, but a surprising amount of it comes down to systems: the regulator, your insurer and your clients all expect you to run a well-organised practice from the first day you open.

This checklist walks through what a new firm typically needs in place and what software can take off your plate. It is written for solicitors setting up a sole practice or a small partnership in England and Wales.

1. The regulatory foundations

Unless you practise as a freelance solicitor (which comes with restrictions, including not holding client money), your firm will need SRA authorisation before it opens. Allow several months for the application. Alongside it you will need:

Professional indemnity insurance that meets the SRA Minimum Terms and Conditions.
A COLP and a COFA: every authorised firm needs a Compliance Officer for Legal Practice and a Compliance Officer for Finance and Administration. In a sole practice, you can hold both roles.
Anti-money laundering arrangements if you do in-scope work such as conveyancing or handling client funds for transactions: a firm-wide risk assessment, written policies, client due diligence and staff training.
Data protection registration with the ICO, plus a privacy notice for clients.
A complaints procedure, with clients told in writing at the outset how to complain and about the Legal Ombudsman.
Transparency information: if you offer services such as conveyancing, probate or employment tribunal claims, you must publish price and service information on your website, and display the SRA digital badge.

2. Matters, clients and conflicts

Every piece of work needs a matter record: the client, the other side, key dates, documents and correspondence. Before you take on a matter you need to check for conflicts of interest, which is hard to do reliably from memory or a spreadsheet once you have more than a handful of clients.

What to look for: matter records organised by practice area, a single contact database covering clients, opponents and third parties, and a conflict check you can run before opening each matter.

3. Client money and SRA accounts

If you will hold client money, you need a client bank account and records that meet the SRA Accounts Rules: a ledger for each client, prompt recording of every receipt and payment, and a reconciliation at least every five weeks. Getting this right from the start is far easier than untangling it later. Our plain-English guide to the SRA Accounts Rules covers the essentials.

What to look for: separate client and office ledgers, bank statement import and a three-way reconciliation report (bank, cash book and client ledgers) you can produce on demand.

4. Time recording and billing

Cash flow is what sinks most new firms, not a lack of work. Record time as you go, bill promptly, and make it easy for clients to pay.

What to look for: quick time entry against a matter, invoices generated from recorded time and disbursements, and online card payments so clients can pay from the invoice itself.

5. Documents, email and e-signatures

Client care letters, terms of business and routine correspondence should come from templates, not be retyped each time. Documents and emails should be filed to the matter so anyone picking up the file can see the full history.

What to look for: document templates that fill in client and matter details, e-signatures for engagement letters, and email filed to the matter automatically.

6. Keeping clients informed

Clients chase for updates when they cannot see progress. A secure client portal where they can check their matter, share documents and message you cuts down the "any news?" calls and emails that eat into a small firm's day.

7. Security from day one

Insurers and larger clients increasingly ask about cyber security. At a minimum you want two-factor sign-in for everyone, an audit trail of changes, reliable backups, and the ability to export all of your data if you ever move systems.

One system or many?

You can assemble all of this from separate tools: an accounts package, an e-signature service, a document store, a CRM and a time recorder. For a new firm, that means five subscriptions, five logins and a lot of copying data between them. An all-in-one practice management system covers the same ground in one place, with one price, and is usually quicker to set up.

Matterly was built for exactly this: matters and contacts, conflict checks, time recording and billing, SRA trust accounting, documents, e-signatures, a client portal and AI drafting in one web-based system. See our published pricing or start a 14-day free trial.

This article is general information, not legal or regulatory advice. Rules and thresholds change, so always check the current SRA Standards and Regulations and guidance, or speak to a compliance adviser, before relying on it.