Every firm that handles money for clients holds a position of trust, and the SRA Accounts Rules set out exactly how that trust must be protected. Knowing which account money goes into, when it can come out, and how to put right a mistake is part of the daily work of a solicitor — and a discipline the SRA takes seriously. Get the basics right and the rest follows naturally.
This lesson builds your understanding step by step:
- Categories of Money — how to tell client money from business money, and what to do when it's mixed or unclear.
- Handling Receipts and the Client Account — where client money must go, how promptly, and how the client account works.
- Withdrawing Client Money — the permitted grounds for taking money out, and why a ledger must never go into debit.
- Transferring and Returning Money — billing before you transfer costs, and returning money once there's no reason to hold it.
- Correcting Errors and Inter-Client Transfers — putting shortfalls right immediately and moving money safely between clients.
- Stakeholder Money and Record-Keeping — holding money for both parties, plus the records and five-weekly reconciliations you must keep.
By the end, you'll handle receipts and payments with confidence.