Solicitors' Accounts Rules

Under rule 35 of the Solicitors Accounts Rules (amended 31 March 2009) all solicitors who deal with client money are required to undergo an SAR audit on an annual basis by a firm of specialist solicitor accountants. To check if this applies to you, follow the link to the SRA website http://www.sra.org.uk/solicitors/change-tracker/accounts-rules/accounts-rules-f.page#r35

The report to the Law Society on the firm’s compliance is submitted by the reporting accountant along with a checklist to the solicitor stating the outcome of the SAR audit. The Law Society places great reliance on the SAR audit to gain assurance that solicitors are complying with the SAR and that client monies are being safeguarded.

The report is sent to the solicitor once a year, at the end of the accounting period, by the Law Society. It is due within 6 months of the year end and covers a 12 month period in most cases. As per rule 37(http://www.sra.org.uk/solicitors/change-tracker/accounts-rules/accounts-rules-f.page#r37), a solicitor’s accounts report must be prepared and signed by an accountant who is a member of one of the authorised professional accountancy organisations and who is also a registered auditor with one of those organisations.

Ellis Lloyd Jones LLP is a member of the Institute of Chartered Accountants in England and Wales and is also a registered auditor. We have many years experience in both the preparation of sole trader/partnership accounts and tax returns for solicitors and undertaking solicitor’s accounts rules work and reporting the findings to the Law Society.

Using our extensive knowledge and experience, we are not only able to prepare the documents that are required by HMRC and The Law Society but can suggest ways in which the systems and controls can be changed so that they become more efficient on an ongoing basis.

Please contact Kara Williams for further information on our services and should you require a fee estimate.

Useful links:

Solicitors Regulation Authority - http://www.sra.org.uk

Law Society - http://www.lawsociety.org.uk/home.law

Solicitors Accounts Rules - http://www.sra.org.uk/solicitors/change-tracker/accounts-rules/accounts-rules.page

Reporting Accountant’s checklist - http://www.sra.org.uk/documents/rules/sar/solicitors-accounts-rules-appendix-4.pdf

Accountant’s report form - http://www.sra.org.uk/documents/rules/sar/solicitors-accounts-rules-appendix-5.pdf