SRA refines ‘accountants report’ exemption plans

SRA refines 'accountants report' exemption plans

Solicitors regulator reveals phased approach to creating exemptions for lawyers from the accountants report

PLANS to streamline the elements needed to complete annual accountants’ report for law firms have been revealed by the Solicitors Regulation Authority (SRA).

Its newly simplified approach has been put forward as a more amenable alternative to its previous plans – announced in May – to do away with the reports completely, a move which met with resistance from both solicitors and accountants. The accountants’ report is an audit of solcitiors’ client account – where they hold client’s money.

Now, while firms will still have to commission accountants’ reports within six months of their financial reporting period, only those reports that are qualified will have to be filed with the SRA.

It also means that firms whose fees are entirely derived from Legal Aid work will be exempt from commissioning a report.

The changes will be phased in in two stages, beginning in October this year, while phase two, which includes issuing a fully revised format for the accountant’s report, will kick in from April 2015.

The body has also ensured that the Overseas Accounts Rules have been simplified to make it significantly easier for firms with foreign practices to comply with the SRA’s stipulations.

All the latest changes will still need to be approved by the Legal Services Board before inclusion in the SRA’s Handbook.

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource