Key to Renewal of Lawyer’s License: Choose the Right Accountant
Every year, lawyers must submit an Accountant’s Report for license renewal, which is verified by an accountant to ensure that the lawyer’s office has not misused client funds. The rules and regulations of the Law Society are extremely strict, every cents need to record properly without delay. Otherwise you may be caught off guard at any time!
Common Mistakes in Handling Funds
Law firms must deposit funds submitted by clients in a Client Account, which cannot be used arbitrarily during the custody period.
The funds can only be transferred to the Office Account after the court determines the amount the law firm can collect.
When receiving funds or payment from clients, the time of deposit into the company’s bank account must be handled properly within the specified time.
Any serious errors will be recorded in the Accountant’s Report. The Accountant’s Report is required to submitted together with the license renewal application. If there is a violation, the Law Society will issue a warning letter, and the law firm must correct the problem before it can successfully renew its license.
It’s Never Too Late to Fix the Problem
An accountant familiar with the rules and regulations of the Law Society will have already detected the problem before the warning letter arrives.
They can provide advice to the law firm to correct the problem early and be well prepared to provide a full explanation. Otherwise, when the warning letter arrives, the law firm may suddenly realize that its accounting records are full of errors and completely deviate from the Law Society’s rules and regulations. Trying to fix things at this point may be too late, and the crisis of losing the license may be imminent!
License renewal is crucial, and details cannot be ignored. It is recommended to have an experienced accountant with relevant expertise conduct the audit to minimize the degree of error.
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