Solicitors accounts Flashcards
When should accountants report any serious breaches
Immediately
Firms and solicitors must report any serious breaches of the accounts rules when
Promptly
Firms must obtain bank statements how often
5 weekly
Firms must conduct reconciliations how often
5 weekly
First must obtain an Accountant reports when
Within 6 months of the end of the accounting period
If a qualified accounts report is delivered when should it be provided to the SRA
Within 6 months of the end of the accounting period
How long is an accounting period usually for
12 months
How long should firms retain and store accounting records
6 years
Firms must keep accurate contemporaneous and chronological accounting records for what
Client ledgers
Cash sheet
Profit costs
Transfers
Client ledgers need to be identifiable what should it include
Clients name and matter
What records payments into and out of the firms bank accounts
Cash sheet
What is the primary purpose of the accounts rules
To keep client money safe
Debit and credit entries must always balance each other out what does that mean
They should both be either in the client account columns or both be in the business account columns
One will always be a credit the other a debit
Where should client money be paid into
The client bank account
What happens if client money is paid into the business account - what’s the exception
It is a breach and must be immediately rectified
unless it’s a mixed of client and business money and client money must be promptly allocated
What are four categories of client money
- Money held on behalf of clients
- Money held of 3rd parties
- Sols having a specified role
- POA & disbursements
3 ways client money can be withheld
- Agreement in writing
- LAA payments
- Held by sol as a trustee
All firms should have what officer
COFA - compliance officer for finance and administration
Do COFAs have to be legally qualified
No
When can client money be withdrawn
If sufficient funds are held
Should client money always be available in demand
Yes
When should sols correct breaches of the rules
Promptly
If a breach involves client money being withdrawn or withheld should be rectified when
Immediately
