Dormant Balances

Essential Reports for Office Managers – Part 2

Manage Your Practice and Maximise Your Efficiency with the help of Sol-Est Accounts

Part 2: Dormant Balances

 

Your Sol-Est program, when used correctly and to its full potential, is a very powerful accounting tool.

 

When the postings and reconciliations are completed properly, your reports & manual reconciliations will provide your accountant with everything they need to quickly and easily prepare your accounts for tax and submit your end of year audit to the Law Society. As an office manager or practitioner, the reporting facility in Sol-Est should be used to maximise the usefulness of the program and ensure the smooth running of the office.

 

This series of blog posts highlight a selection of the most important reports, which you should make a habit of running regularly.

 

To check for dormant balances on the client account, run the following report:

 

  •   Reports > Account Reports > Client A/c > Dormant Balances – Enter a date on which to base the report

 

This report will show you client balances that have not changed from a certain date until the present day. For example, if you run this report for all clients as at the date 01.01.2015, this report will list all matters with a client balance that has had no transactions since 01.01.2015. These accounts can they be investigated and actioned to ensure they are not left dormant.

 

For a more detailed dormant balances report, encompassing the office ledger, that will analyse matters that have had no movement on neither the office side nor the client side, you can run the following report:

 

  • Reports > Account Reports > Office A/c > Dormant Ledger Summary – Enter a date on which to base the report

 

We have noticed that the Law Society auditors are really cracking down on dormant balances in recent inspections. Use these reports to check for client balances that have remained unchanged which may indicate missed fees or uncashed cheques that were written back and not replaced.

 

We must stress that the usefulness of the reports is dependent upon the standard of posting to the system. Posting should be kept up to date, and manual reconciliations run each month to verify the accuracy of the data input to Sol-Est. Once your book-keeper has completed the monthly reconciliations, you should review those in conjunction with the reports below in order to keep your practice running efficiently.

 

If you do not use Sol-Est Accounts, you may be able to generate similar reports from your software. If you cannot, you should consider upgrading to Sol-Est to ensure you have can properly manage your practice and finances within the SAR.

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