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Client account reconciliation: quick reference

Quick reference for client account reconciliation obligations under the SRA Accounts Rules 2019. Covers five-weekly reconciliation requirements, central record keeping, SRA reporting triggers, accountant's report deadlines, and COFA responsibilities.

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Key reconciliation obligations, reporting triggers, and deadlines under the SRA Accounts Rules 2019.

Five-weekly reconciliation

Requirement Detail
Frequency At least every five weeks (Rule 8.3)
What to compare Client account bank statement balance, total of all individual client ledger balances, and cash book balance
Differences Investigate and resolve promptly; document findings
Retention Reconciliation statements and working papers kept for at least six years

Central record keeping

Record Minimum retention
Client ledger accounts Six years from last entry
Bank statements (client accounts) Six years
Reconciliation statements Six years
Bills and costs notifications Six years
Withdrawal authority evidence Six years

SRA reporting triggers

You must report to the SRA promptly if any of the following arise:

  • Shortfall on client account that cannot be replaced immediately
  • Improper withdrawal from client account
  • Failure to carry out five-weekly reconciliation
  • Material differences identified during reconciliation that cannot be resolved
  • Qualified accountant's report identifying non-trivial departures from the rules

Accountant's report deadlines

Obligation Deadline
Obtain accountant's report Within six months of the end of each accounting period in which client money was held or received (Rule 12.1(a))
Deliver qualified report to SRA Within six months of the end of the accounting period — delivery is required only if the report is qualified (Rule 12.1(b))
Clean report Retain on file; no delivery to SRA required
Exemptions (Rule 12.2) No report required if all client money in the period came from the Legal Aid Agency, or if balances did not exceed an average of £10,000 and a maximum of £250,000

COFA responsibilities

Responsibility Rule reference
Ensure firm complies with the Accounts Rules SRA Code of Conduct for Firms, para 9.2
Report serious breaches to the SRA SRA Code of Conduct for Firms, paras 3.9–3.10
Ensure financial records are stored and retained (six years) SRA Accounts Rules, Rule 13
Oversee reconciliation process SRA Accounts Rules, Rule 8.3
Firm must have a COLP and COFA at all times SRA Authorisation of Firms Rules, Rule 8.1

For full procedural guidance, see Manage client money under SRA Accounts Rules.

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