Category: ‘The Law Society of Scotland Accounts Rules’

Team News – Deborah Tough, Welcome!

January 18, 2016 Posted by Lynne Moffatt

I would like to say a very warm welcome from By the Books to Deborah Tough, in her new role as our Cashroom Services and Support Officer.

Having a variety of skills and experience within the leisure, construction, banking and retail industries, I know Deb will be a valuable addition to the team as we continue to grow.

Anne and I are now busy working away on training and helping Deb to get to know our systems, policies and procedures. – We have made excellent progress in just 2 weeks!

We would like to take this opportunity to thank all clients for their continued business and support – THANK YOU!

Lynne Moffatt

CONGRATULATIONS – PRIZE DRAW RESULTS

December 1, 2013 Posted by Lynne Moffatt

My prize draw results on Friday, 30 November 2013 are as follows:-

**WINNER** – Drawn first, to win an iPad mini, is:-

Barbara Duckworth, Masson Cairns, Grantown-on-Spey

**RUNNERS UP** – Drawn second and third, to win a £50 M&S voucher, are:-

Isobel Ingram, MacArthur Stewart, Fort William
Sharon Hall, Connons, Stonehaven

I would like to thank ALL for their contributions to my testimonials page, and support – THANK YOU!

The Law Society of Scotland Accounts Rules Audits/Inspections – Inspection Tips

July 16, 2013 Posted by Lynne Moffatt

Every 2 to 3 years, Scottish legal firms can expect an inspection by The Law Society’s Financial Compliance Team of Inspectors.  The following series of articles will provide tips on how to prepare and deal with these well.

1 Dealing with an inspection
2 Pre-inspection tips
3 Inspection tips
4 Post-inspection tips


INSPECTION TIPS

For many partners, the sight of a Law Society Inspector fills them with angst. It’s the same principal when passing through airport security – you know you have nothing to hide, but you still feel the officials are suspicious of you!

The Law Society of Scotland Inspectors have a serious and important job, but you can help to make their visit as streamlined and comfortable as possible.  The purpose of an inspection is to inspect … they will ask for a variety of types of files, so do not assume they think there is something wrong because they ask to see it.

Be helpful

You will receive a ‘Pre-Inspection Questionnaire and Checklist’ before -hand. Use this to ensure all documents needed are readily available.  The Law Society understand that firm’s are turning to technology to reduce their paper storage requirements, and to simplify compliance.  However, spare a thought – they must see HUNDREDS of differing ‘systems’ (paper or electronic) so don’t expect the Inspector to just ‘know’ what you do, guide them to what they need.

Ask for clarification

During an inspection, suddenly you feel the Inspector speaks another language – you may not understand their requests.  Terminology is the biggest hurdle.  There can be several terms for the same report or document – your Cashier calls it one thing, your Accountant calls it another, The Law Society may call it something different to both of these terms. Do not worry that you do not understand – politely ask the Inspector to clarify the terminology.  Perhaps they have a copy of the same document from their last inspection of your books that will help you both to identify what is required.

Request guidance

SHOCK ANNOUNCEMENT: **No Cashroom, Partner, Cashier or System is INFALLIBLE**
Wow … mistakes can happen!  When issues are brought to our attention at an inspection – generally it is not the end of the world. We’re not referring to fraudulent activity, that’s a whole other discussion – we are referring to issues which are sometimes out of our control or a genuine mistake … at some point it will happen.  We may know exactly how to make sure it does not happen again, but may not see the issue or know what to do about it. So, ASK FOR HELP.  Chances are, the inspector will have seen a similar situation, and have experience on how it should be handled.

Follow up on points you should work on

Points raised at an inspection, will either be followed up by The Law Society shortly after your visit or they will re-check issues at a future inspection. This is to satisfy themselves that matters have been addressed.  Determine which issues require action, create a plan, and put it into action.  It may be that you need to review systems and procedures or carry out training (you or your staff).  If you don’t know where to start – get HELP from a qualified Law Accountant.

Our Scottish Law Accountants will be delighted to speak with you if you are concerned about an upcoming inspection or one that has taken place recently – call us for a friendly, impartial chat.

 

Outsourcing your Cashroom – 4 of 4

June 28, 2013 Posted by Lynne Moffatt

Outsourcing seems to be a hot topic with Scottish legal firms, and The Law Society of Scotland.  The following series of articles outlines points for consideration if you are thinking of outsourcing your cashroom.

  1. Could outsourcing your legal cashroom be the answer?
  2. Outsourced Cashroom – How can it work?
  3. Outsourced Cashroom – What to Expect
  4. Outsourced Cashroom – What not to Expect

 

Outsourcing your Cashroom
Part 4 of 4 – Outsourced Cashroom – What not to Expect

Whilst an outsourced cashroom will have many benefits, it will not completely remove your responsibility as Cashroom Manager (prev called Designated Cashroom Partner) of your legal firm, these responsibilities come as standard.

Pin the tail on the Solution

When outsourcing your cashroom function you should NOT expect:-

  • to be immune to Law Society audits, but we will make these as painless as possible
  • that we will manage your staff – however, we will help them as much as we can
  • to have to manage us, as you would an employee
  • to pay employer’s NIC, SSP, SMP, SSP, SAP – no incidental employer expenses that add up
  • to shell out for computer or office equipment that would be necessary if you had a cashier in-house
  • procedures to stagnate – if it can be made simpler and/or quicker, we will offer suggestions
  • to ever want to change back to a full-time in-house cashier!

Once you have tested how an outsourced, or virtual, cashroom can work – we don’t expect you to ever want to go back to having a full-time in-house cashier ever. Of course, life changes and firm’s change so if you do feel that you need an in-house cashier again – we will also make that transition as painless as possible. We can provide training and support at that stage, if  needed.

Could a virtual cashroom be YOUR solution?

Outsourcing your Cashroom – 3 of 4

June 25, 2013 Posted by Lynne Moffatt

Outsourcing seems to be a hot topic with Scottish legal firms, and The Law Society of Scotland.  The following series of articles outlines points for consideration if you are thinking of outsourcing your cashroom.

  1. Could outsourcing your legal cashroom be the answer?
  2. Outsourced Cashroom – How can it work?
  3. Outsourced Cashroom – What to Expect
  4. Outsourced Cashroom – What not to Expect

 

Outsourcing your Cashroom
Part 3 of 4 – Outsourced Cashroom – What to Expect

An outsourced cashroom can greatly reduce your stress levels and concerns when it comes to your Cashroom and The Law Society of Scotland’s Accounts Rules.

If you follow your initial training, you can expect:-Outsourcing Benefits

  • your outsourced cashroom to run smoothly and exceptionally easily
  • your costs to be lower than paying a Cashier’s salary – less than half is what we aim for
  • firm financial reports as often as you require, and in a format that you can easily read
  • information on any updated accounts rules or suggested ‘good practice’ guidelines
  • your Law Society accounts inspections to run like clockwork
  • suggestions to further streamline your accounts procedures
  • a helpful, straight-forward attitude to dealing with your accounts and book-keeping requirements
  • to benefit from a network of firm’s who, just like you, have outsourced their legal cashroom

Are YOU ready to benefit?

Outsourcing your Cashroom – 2 of 4

June 11, 2013 Posted by Lynne Moffatt

Outsourcing seems to be a hot topic with Scottish legal firms, and The Law Society of Scotland.  The following series of articles outlines points for consideration if you are thinking of outsourcing your cashroom.

  1. Could outsourcing your legal cashroom be the answer?
  2. Outsourced Cashroom – How can it work?
  3. Outsourced Cashroom – What to Expect
  4. Outsourced Cashroom – What not to Expect

 

Outsourcing your Cashroom
Part 2 of 4 – Outsourced Cashroom – How can it work?

Whether outsourcing is for your firm or not depends on your needs, but I have not met a situation yet that cannot be accommodated using an outsourced cashroom solution.

  1. We run the accounts software for you, so you don’t need to pay for it each year – CHECKCHECK
  2. Banking systems (online) – CHECK
  3. Internet connection – CHECK
  4. Easy access to firm’s financial information – CHECK
  5. Easy access to client’s ledger information – CHECK

1 + 2 + 3 + 4 + 5 = OUTSOURCE YOUR CASHROOM

You will need someone at your end to pay cheques in, send cheques out and send us information. This can be a secretary, receptionist, junior member of staff or YOU if you prefer to work alone! Full training for the minimum of procedures will be provided.  The rest you can leave to us. We will keep you on the right track, run the rest of your cashroom requirements (including The Accounts Rules) and provide you with the information you need to run your business.

If IT scares you – don’t worry, we LOVE IT!  We have created systems that are easy to learn and use, so deployment is quick and there is little time spent on the crossover to a new system.

Outsourcing your Cashroom

June 4, 2013 Posted by Lynne Moffatt

Outsourcing seems to be a hot topic with Scottish legal firms, and The Law Society of Scotland.  The following series of articles outlines points for consideration if you are thinking of outsourcing your cashroom.

  1. Could outsourcing your legal cashroom be the answer?
  2. Outsourced Cashroom – How can it work?
  3. Outsourced Cashroom – What to Expect
  4. Outsourced Cashroom – What not to Expect

 

Outsourcing your Cashroom
Part 1 of 4 – Could outsourcing your legal cashroom be the answer?

If outsourcing your cashroom is the answer, what is the question?

> My cashier is retiring soon, how will I replace her/him?
It is extremely difficult, nigh on impossible, to find a reliable legal cashier who aces accountancy and the accounts rules.

> My paralegal is also my cashier, we could take on more legal work – but where will we find the time?
You could increase your turnover, but cannot find the time out from other duties.

> If fear of running my own accounts did not stop me from opening my own law firm, how successful could I be?
You aspire to run your own successful law firm, but do not know where to start with Accounts Rules compliance and systems.

> I am out of the office a LOT, how can I have access to my firm’s financial information wherever I am?
By taking advantage of industry-leading software – you WILL have access to the information you need, wherever you are.

The answer? – OUTSOURCE YOUR CASHROOM!

9 months – and counting!

January 31, 2013 Posted by Lynne Moffatt

The Law Society of Scotland Accounts Rules amendments commenced on 1st November, 2011. This introduced Rule 6.11.1 – dealing with client balances at the conclusion of a matter. 2 months is the suggested ‘time limit’ to clear a ledger.

The intention is that small client balances are dealt with timeously – they no longer remain on ledgers and client trial balance reports for years, as some have in the past. There are many benefits. For years, I have urged many a client to do their house-keeping regularly – it’s much easier to see the wood from the trees which reduces the risk of ‘missing a balance’ – ultimately an indication that deeds have not been sent for recording, or stamp duty has not been paid on time!

What about client balances I have had for years?
The Law Society understood that with the introduction of a suggested ‘time limit’, firms now faced a mammoth and virtually impossible task to clear balances they might have had for years by 31st December 2011.  They therefore added Rule 6.11.2 to clarify – existing balances (of concluded matters) held at 31st October 2011 would not be subject to the 2 month ‘time limit’, and firms would have a much more reasonable 2 years to deal with the old balances appropriately.

Time marches on and many firms might have forgotten about their responsibility here. 9 short months until deadline.

Of course, any new balance for a matter concluded since 1st November 2011 automatically falls under 6.11.1 and should be dealt with within 2 months (unless you can demonstrate, and have documented a reason to retain the funds).

The Law Society have issued guidance on how to deal with balances appropriately, at the conclusion of a matter. Useful guidance – ‘Sums between £10 and less than £50’ in LSS guidance, and ‘Sums of £50 and more

Practically, how can my client balances be managed?
As the old balances disappear it will become much more manageable to keep on top of new balances. Still, it could be an enormous task to review ALL balances regularly.

If you use QuickBooks as your Legal Accounts Software Solution, you can easily identify which ledgers you should focus on or be concerned about.

Here follows a short video to help you with this.