The Law Society have published new Solicitors Accounts Regulations which will come into effect on the 1st July 2023.
The current regulations have been in force since 2014 and will remain in force in respect of any accounting period that has commenced before 1st July 2023, until such time as the solicitor has furnished the Law Society with a Reporting Accountants Report.
The new regulations can be accessed here .
Key changes include the following;
- Reporting Accountant’s Reports are to be filed within five months of the accounting date.
- Balancing statements are to be prepared at quarterly intervals in respect of client account transactions.
- Reporting Accountant to test check postings before and after accounting date.
- A listing of client ledger balances outstanding two years or more is to be prepared at the accounting date and furnished to the Law Society by the Reporting Accountant.
- Reporting Accountants may report, directly to the Law Society, an opinion or a suspicion of a deficit, rather than waiting to submit the annual report.
Further information can be found on the Law Society’s website
here.
Updated guidance for Accountants will be published in due course.