Own Client Accounts

[Graham Richardson]

Hi,

Does anyone else manage own client accounts where funds are also held outside of a traditional bank account, for example, Court funds office or NS & I in savings or bond accounts?

If so do you reconcile these accounts if you have control over them? Even if you have robust procedures in place? we have a nominated withdrawal account which cant be changed without a director signature.

Thanks
Graham

[Phil Invernizzi]

Hi Graham

We have a couple and our accountants always ask for them every year with our annual audit.

They expect to see a monthly reconciliation signed of by a partner. Ours are both maintained by a partner so we make sure a different partner signs them off.

Hope this helps

Phil.

[Geoff Smith]

I think the answer to this is quite simple and comes as another question (although I wouldn’t usually answer a question with a question) –

“Why wouldn’t you reconcile the account?”

It is, in my view, best practice to reconcile all bank/financial accounts irrespective of whether or not there is a requirement or irrespective of who has control.

It is so easy, over the passage of time, to lose track of transactions, the fee earner or person with authority may change more than once as may the person/people in the accounts department.

There may also be other statutory requirements, for example interest and tax deductions, far simpler to have properly written up records which agree with the record at the relevant bank or other institution than to have to trawl through a file when the matter ends to find that the amount expecting to be drawn down does not agree – higher or lower – with the amount received from said financial institution.

[Author]

Posts