Legal bookkeeping,
SRA compliant.
Specialist bookkeeping for law firms with full SRA client account compliance and annual accountant's report preparation.
What Is Legal Bookkeeping?
Legal bookkeeping is a specialist discipline that goes far beyond standard bookkeeping. Law firms that hold client money are subject to the SRA Accounts Rules — a strict regulatory framework requiring precise separation of client and office funds, regular reconciliations, and rigorous financial record-keeping.
A mistake in client account management is not just a bookkeeping error — it can constitute a serious SRA breach, putting the firm's regulatory status at risk. We provide the specialist expertise law firms need to stay fully compliant.
SRA Compliance
The Solicitors Regulation Authority (SRA) Accounts Rules impose strict requirements on how law firms handle client money. Client funds must be held in a designated client account, completely separate from the firm's own office account, and every transaction must be recorded with precision. Mixing client and office funds — even temporarily or inadvertently — constitutes a serious regulatory breach with potentially career-ending consequences.
We carry out monthly three-way reconciliations for client accounts, confirming that the client account ledger, the cashbook, and the bank statement all agree. This is a core SRA requirement and one of the most effective controls against errors or irregularities. Where discrepancies arise, we identify the cause promptly and document the resolution. At year-end, we prepare the annual accountant's report required by the SRA, confirming the firm's compliance throughout the period.
During an SRA inspection or file review, firms are expected to produce well-maintained records at short notice. Our organised, cloud-based approach means that documentation is always accessible and audit-ready. We work proactively to ensure there are no gaps or inconsistencies before an inspection takes place, giving your firm the best possible foundation for a clean compliance outcome.
Why Choose Brathwaite?
Full SRA Accounts Rules compliance for client account management
Separation of client and office account transactions
Monthly three-way bank reconciliation for client accounts
Annual accountant's report preparation for SRA submission
Xero and Solicitors Accounts software expertise
Specialist understanding of legal sector financial requirements
Frequently Asked Questions
What are the SRA Accounts Rules?
The Solicitors Regulation Authority (SRA) Accounts Rules govern how law firms must handle client money. They require strict separation of client and office funds, regular reconciliations, and an annual accountant's report. Non-compliance can result in serious regulatory sanctions.
Do all law firms need a legal bookkeeper?
Any SRA-regulated firm that holds client money must comply with the SRA Accounts Rules. Most firms, even small practices, benefit significantly from specialist legal bookkeeping to maintain compliance and avoid the risk of regulatory breaches.
What is a solicitor's accountant's report?
The SRA requires an annual accountant's report confirming that the firm has complied with the SRA Accounts Rules. This must be prepared by a qualified accountant following a review of the firm's client account records. We prepare these reports for our legal sector clients.
Can you work with our existing practice management software?
Yes. We work with the leading legal practice management systems including Clio, LEAP, and Osprey, as well as cloud accounting platforms like Xero adapted for legal use. We'll integrate with whatever system your firm already uses.