I have produced two sets of accounting records for solicitor clients.
The first client I have not had a problem with the client account auditor. The new client has had problems with a different client account auditor.
He has said that I have not produced double entry bookkeeping. My client has explained the problem further by saying “It relates to there not being a double entry system for each file for office and client he cited as you have seen rule 29 this is a real problem.”
I have produced accounts in exactly the same way for both clients. The transactions on the office account have been analysed by income/expense. The transactions on the client account have been analysed by client. I fail to see what else he requires. I will ask him but I think he wants to see ledgers for each client rather than the total transactions on the client account with a column for each client.
Also he wasn’t happy with me not producing bank reconciliations. I pointed out that the client account was prepared from the bank statements and therefore agreed to the bank statement. I had to produce a schedule for each month showing the bank statement balance and the client account balance as well as a zero difference between the two.