Solicitors

Need of Accounting for Solicitors (Legal Professionals)

In order to provide Accounting services for legal professionals and solicitors it becomes mandatory that the accountant is professional, experienced and has an in-depth knowledge of the sector. For an accountancy firm it is mandatory to be registered auditors and the firm should be able to provide services to all type and size of businesses.

 

Especially in the case of Solicitors accounting the service provider should be apply to comply with  the work related to solicitors accounting such as the Solicitors Accounts Rules, audit services, annual accounting, tax and planning for risk mitigation and should be experienced enough to advise on non-routine issues.

 

Changes have been made with respect to SRA(Solicitor Regulation Authority) Accounts Rules and reporting requirements, and Legal Services Board has now approved it. These changes will come into effect on or after 1 November 2015 after the end of accounting period. In this new ruling the auditor is required to exercise their professional judgement in order to determine the work required to assess risks to client money and allow for flexibility to individual solicitors practice to ‘suit the audit’.

 

This is why an accountancy firm with enough knowledge and experience is required for solicitor’s accountancy. We have proficiency in providing accounting for solicitors.

  • An accounting firm should be knowledgeable and experienced enough to provide guidance / advice which will comply with the Principles of the SRA Handbook.
  • In our accountant panel we have professional who have expertise in handling accounts of solicitors.
  • We have professional with whom you can discuss personal as well as business related tax planning.
  • Correct financial structuring for your practice, or for a Limited Company can be a headache at the best of times, and we help you to plan with our best accountants throughout the year.
  • Our professionals who are better informed about the SRA helps you to take right decision and make your firm tax efficient.

Requirements to be a Solicitor accountant

Most of the accountants will act as reporting accountant for solicitor clients and are required to operate client accounts.  They need to prepare the checklist and accountants report which is to be submitted to the Solicitors Regulation Authority (SRA) within six months of the client’s year end. The new Solicitors Accounts Rules (SARs) have become more “outcomes-focused”.

 

It is required by the accountants to get grips with the new regime in order to ensure that new rules have been followed properly and to spot breaches and prepare the accountants report and checklist with minimum error.

Outcomes-focused Approach is

It is designed to put client first and at the same time public interest should not be prejudiced. It is being flexible and yet complying with all the rules.

Principles

An accountant should have high moral principles, should keep client money safe, should use client account for appropriate purpose only and should safeguard client money from all kinds of threat.

Outcomes-focused Approach is NOT

Being light touch with regulations. Having a tick box approach to regulations. Basically, not an approach which is general and not tailored for specific need.

Awareness of SAR

The SAR are split into 8 subcategories in order to have a safe guard approach towards solicitors and clients both and all in all there are 53 rules.
bookkeeping for solicitors

Bookkeeping for Solicitors

Solicitors should follow Bookkeeping practices in order to track the financial transactions, so it does not distract Lawyers billable time. Keeping all the records and organising all the financial transactions that you have made throughout the year comes under bookkeeping.

 

In accounting bookkeeping services is an integral part and focuses mostly on keeping day to day record of all the financial transactions that you have made for your business throughout the year. For Solicitors bookkeeping becomes important for the below mentioned reason

  • Manage Money Flow
  • Maintain and record all financial transaction
  • Handle clients as well as Office accounts
  • To maintain a Compliant ready account which can be audited

Tracking Every Activity

It is imperative to track client billable activities with least effort. Law firms/ solicitors can employ a system for tracking the hours devoted to clients, charging them for those hours, and keeping track of the payments when being received. It is accuracy that is most important while tracking and simply not letting anything slip through.

Ledgers Recording

Financial accounts and transactions are kept in Bookkeeping ledgers. The ledger represents one account from the Chart of Accounts. The ledger is required to provide the transaction history and current balance in each account, throughout the accounting period. It provides a summary of expenses and incomes on a regular basis and provide records of financial transactions.

Money Saver

You might think that bookkeeping can make you spend a good chunk of your hard earned money, but you will realise that it helps you and ultimately saves you money by lowering the risk of an audit, clash flow accuracy, tax penalties and it also help you avoid making human errors.

SAR (Solicitor Accounts rule)

The SAR’s are subcategorised into 8 categories with each part containing rules that are related to each other. In total there are 53 rules.

Part

  • Part-I
  • Part-II
  • Part-III
  • Part-V
  • Part-IV
  • Part-VI
  • Part-VII
  • Part-VIII

Description

  • General
  • Client money and operation of a client account
  • Interest
  • Accounting systems and records
  • Monitoring and investigation by the SRA
  • Delivery of accountants’ reports
  • Overseas practice
  • Transitional provisions

Rules

  • Rules 1 to 12
  • Rules 13 to 21
  • Rules 22 to 25
  • Rules 26 to 30
  • Rule 31
  • Rule 32 to 36
  • Rules 47 to 52
  • Rules 53

For Solicitors Accounting service (Connect with us)

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