Solicitors Accounts VI: Double Entry Bookkeeping and Client Ledgers
Description
The essential requirements for law firms concerning the management and reconciliation of client accounts. Specifically, law firms must obtain bank statements for all client and business accounts from financial institutions at least every five weeks to ensure they have current financial information. Furthermore, firms are mandated to perform a reconciliation of all client accounts every five weeks, comparing bank statements against internal cash books and client ledgers to verify accuracy. Following reconciliation, a Compliance Officer for Finance and Administration (COFA) or a manager must review and sign off on the process to provide necessary oversight. Finally, if any discrepancies are identified during this financial check, firms must investigate and resolve them promptly to maintain the integrity of client funds.
United States
