The Law Society have published new Solicitors Accounts Regulations which will come into effect on the 1
st 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 1
st 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 annual report.
Further information can be found on the Law Society’s website
here.
Updated guidance for Accountants will be published in due course.