Do you have residual balances that need addressing? Let us remove the hassle and obligations and clear your ledgers!
LBM is always at hand to help tackle any residual balances (private or legal aid). Residual client ledger balances cause particular issues for the Compliance Officer for Finance and Administration (COFA) within a firm and therefore we are here to help.
There are very few law firms that do not face the problem of residual balances on their client account. Might be that the fee earner left without clearing the ledger, forgotten attempts to contact client to refund or simply its balances that have been lost over time on the system. Sometimes these balances might just be a few pounds and might feel its not worth the time to reconcile the ledger, however they can create very real compliance problems under the SRA Accounts Rules 2011.
Under rule 14.3 of the SRA Accounts Rules 2011, client money must be returned to the client (or other person on whose behalf the money is held) promptly, as soon as there is no longer any proper reason to retain those funds. Payments received after you have already accounted to the client, for example by way of a refund, must be paid to the client promptly. Therefore even if your client account has a minor balance it is likely to represent a repeated breach and/or systematic failure and will, therefore, constitute a material breach of the SRA Accounts Rules 2011 that should be reported to the Solicitors Regulation Authority (SRA) by the COFA.