Solicitors Bookkeeping

portanure · 30-11-2009 10:53pm #1

A friend of mine has asked me to look after his bookkeeping, he has a small solicitors practice. I am the bookkeeper in my current job and have access to sage software. is there any thing that I should know for his bookkeeping or is it done the same way as any other business.

dbran · 01-12-2009 10:29am

Hi Portanure

As you know the biggest thing to look after as a bookkeeper of a solicitors is to ensure that the client ledger is not at any time greater then the sum of all the client bank accounts held by the solicitors practice. You also need to ensure that at no time does any of the individual client ledger accounts show a negative figure as this means that they are using other clients funds to fund the deficit. Separate office and client ledgers need to be kept to ensure adequate segregation of office and client money.

There is a whole raft of regulations regarding solicitors accounts that you should be familiar with before you take on this exercise. Any material breach of these regulations will result in the solicitor being reported to the law society by the reporting accountant as a result.

Kind Regards

dbran

mickbyrne · 01-12-2009 10:37am

There are very strict rules relating to solicitors bookkeeping and especially client accounts. Specialised packages are available and should be purchased by the solicitor directly. I don't have any experience of these so can't help you out

censuspro · 01-12-2009 12:37pm

Sage is not ideal for doing a solicitors accounts/book keeping. You should look at alternatives.

MartMax · 01-12-2009 1:07pm

Solicitors must keep their accounting books and records in accordance with Solicitors Accounts Regulations. There are many areas that one must be very careful with especially when it comes to client monies and office receipts.

Importantly, bank accounts and client ledgers have to be reconciled at least every 6 month period. Well my opinion ideally every month to the last cent. Other than that, all transactions must be well documented and traceable to matter files.

There are quite a few of accounting software + system for solicitors practice. Lex, Keyhouse and Harvest Law if I need to name a few. Like other business entities, good software is not necessarily make up the best if there is no good control and procedures in place.

J.Ryan · 01-12-2009 6:32pm

portanure wrote: »

A friend of mine has asked me to look after his bookkeeping, he has a small solicitors practice. I am the bookkeeper in my current job and have access to sage software. is there any thing that I should know for his bookkeeping or is it done the same way as any other business.

Solicitors Accounts are very specialised and if you are not experienced in them and are unable to "pick the brain" of someone experienced in them you are better off passing on this, in the current climate you would not be doing your friend any favours by accepting.

As another poster mentioned there are the rules on the balancing statements, there are also issues about Credit Balances in the Office Ledger and Debit Balances in the Clients ledger.

I have audited Solicitors practices which use Harvest Law and as a package I like it, not commenting on the quality of other packages, but it is one I have experienced.

If you are going to go ahead and do the book keeping for your friend might I suggest you read & understand the following;

http://www.irishstatutebook.ie/2001/en/si/0421.html

http://www.irishstatutebook.ie/2005/en/si/0719.html

http://www.irishstatutebook.ie/2006/en/si/0111.html

Kinetic^ · 01-12-2009 6:33pm

Totally agree with the above. Specialised area and if you know nothing about it then I'd pass on it.

viztopia · 01-12-2009 11:19pm

your solicitor friend will have to get an accoutant to sign an accountants report and perform a review twice a year. perhaps you should contact the accountant for your solicitor and see if they could give you some direction as to what has to be done. balancing the client account as already stated is the most important thing

joint 11th · 02-12-2009 7:39pm

viztopia wrote: »

your solicitor friend will have to get an accoutant to sign an accountants report and perform a review twice a year. perhaps you should contact the accountant for your solicitor and see if they could give you some direction as to what has to be done. balancing the client account as already stated is the most important thing

Why is the need for review twice a year? I havnt heard of this (could be an ROI requirement, as I am based in the north)

Also- Does anyone know can Solicitor practises incorporate? would be tax efficient if they could.

J.Ryan · 02-12-2009 7:44pm

No Solicitors need to Sole Practioners or Partnerships.

The Solicitor (any CPD I've been at has stated the Solicitor) prepares the Balancing Statement (Clients Funds Vs Clients Ledger) twice a year but the accountant reviews it and submits it on the Law Society return and yes it is an ROI requirement can't tell you about the North

Just as a tangent, why to people always assume that companies are tax efficient?

MartMax · 03-12-2009 2:18pm

Reporting Accountants' Report (what it is called) to the Law Society of Ireland must be submitted within 6 months after year end. The report consists of balancing statements, etc for two periods i.e. first 6 months and at year end.

Similar report to Law Society NI but the statements on it are on quarterly basis.

kennyb3 · 03-12-2009 2:57pm

J.Ryan wrote: »

Just as a tangent, why to people always assume that companies are tax efficient?

Agree - low corporation tax rate but try get money and assets out of a company and it will cost you! Also far more regulated which leads to professional fees and other issues

Solicitors Bookkeeping

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