Legal bookkeeping,
SRA compliant.
Day-to-day bookkeeping and cashiering for law firms: client account ledgers, reconciliations and SRA Accounts Rules compliance.
What Is Legal Bookkeeping?
This page covers day-to-day bookkeeping and cashiering. For year-end accounts, tax and the SRA Accountant's Report, see accountants for solicitors and law firms.
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. Because the records are reconciled all year, they are ready for the year-end accounts and the annual Accountant's Report, which our accountants for solicitors and law firms service covers.
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
Client account records kept ready for your annual Accountant's Report
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 three-way reconciliation in legal bookkeeping?
It is the check that the client ledger balances, the client cashbook and the client bank statement all agree at the same date. The SRA Accounts Rules require client account reconciliations to be done regularly; we do them monthly and investigate any difference straight away.
Can you work with our existing practice management software?
Yes. We keep your books alongside the practice management system your firm already uses, and can set up Xero or QuickBooks for the office side where that helps.
Local accountancy, wherever you are
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