How much to charge solicitor for SRA report

How much to charge solicitor for SRA report

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Hi - would appreciate it if any readers could give an indication as to the fees they usually look to charge for completing a solicitors annual SRA report - the client in question is a sole practitioner with two general client accounts - one pounds sterling and one US dollars. He deals with shipping claims and handles circa fifteen cases a year. Relatively large amounts involved and circa 150 transactions a year going through both client accounts. All manual records. Any guidance would be appreciated. Many thanks.

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By zeofiles
15th Nov 2013 19:48

how long is a piece of string.
All depends on the level of testing undertaken and the quality of the systems used.

Some testing is required irrespective of size / number of clients whilst other testing is activity geared.

Also remember that SRA rules are very detailed and the number of areas where breaches can occur mean that you need to be undertake comprehensive testing.

Finally, remember this is a high value service to the solicitor - without a report the solicitor can't trade!

Pm me to discuss further.

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Replying to andy.partridge:
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By casarnbil
15th Nov 2013 20:05

thank you for your reply - I am a Registered Auditor and have done the annual report for the SRA for a few years using the Mercia specialist assignment manual so the level of testing does not change massively from one year to another - just really interested in how much other accountants look to charge for similar work in case I'm under charging !

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Replying to Mr_awol:
Red Leader
By Red Leader
15th Nov 2013 20:13

not enough

I'm a general practitioner but like a lot of others I'm not a registered auditor. This means that there a lot less potential competitors for you and those that are left are medium sized firms. From which it follows that you probably have room to charge more.

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By Sheepy306
15th Nov 2013 20:47

Agreed
As zeo says.....it can be a premium service and your competition is only from other qualified auditors so it's a good area to work in, once you've learnt the rules and have become proficient. With potentially only 15 cases then it could be relatively quick even with 100% case testing! Base your fees on your daily rate equivalent and you shouldn't go too far wrong. Perhaps 2 days at the clients office testing and checking reconciliations etc, then another 2 days putting your report, checklist and file together plus some planning time to include bank letters and paid cheque testing, so 4 days total? Depends on the clients records and how quickly you can understand the procedures and rules, you'll probably have to write some of your time off in year 1 as you will be slow and unfamiliar with things. If you're doing the office accounts too then you'll already be familiar with some of their systems and know what to expect.

Edit: crossed with Red Leader

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By newmoon
15th Nov 2013 20:52

You are looking for an amount, so
We are registered auditors, but don't actually carry out any SAR work. We were asked to quote for SAR by a sole practitioner solicitor in general practice and with manual records. This was last year (2012).
The records were not tidy and the current accountant charged £11,000 for the accounts and SAR (the whole year's work). We were thinking of contracting out the SAR work, and a firm specialising in auditing quoted us £4,000 to do it. We quoted £3,000 for everything else. Anyway a local medium sized firm quoted less than this and got the work.
This is in the northern part of the UK.

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By casarnbil
15th Nov 2013 22:46

many thanks Red Leader, Sheepy and Newmoon - time spent is almost as per Sheepy states - 2 days at client premises and circa 2 / 3 days planning, obtaining bank letters and returned cheques and writing up files and reports. It's a central London solicitor and I charged £1,950 excl Vat for last years SRA report and then a similar amount for the annual business accounts. Interesting to get feedback from other readers - many thanks for taking the time to post. Just wondering whether I should now be charging a bit of a premium for the SAR work - never easy these things..........

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By seeroo
17th Nov 2013 14:21

3-4 days work

We usually budget around 22.5 to 28 hours for the preparer (senior staff cahrge out rate) plus 2-3 hours review.  In the firm I work at in the North East this is around £1,500 - £2,000.

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Replying to North East Accountant:
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By casarnbil
17th Nov 2013 22:00

many thanks for your response - all helps to confirm I am not too far adrift with what I am charging.

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