SAR Rule 8.3: reconcile every five weeks. The most common breach in accountant's reports. Your agent runs it weekly.
The Solicitors Accounts Rules 2019 (Rule 8.3) require reconciliation of client account at least every five weeks — comparing the bank statement to the firm's client account records and the list of client balances. Failure to reconcile is the most frequently cited deficiency in accountant's reports. A qualified accountant's report — one that identifies SAR breaches — is reported to the SRA and may trigger regulatory investigation. Client account shortages, residual balances on completed matters, and delayed transfers between client and office accounts are all common findings. SAR breaches caused 26.2% of SRA-forced firm closures. Your agent performs reconciliation from your exported ledger data, flags discrepancies, identifies residual balances on completed matters, and produces the reconciliation report for the COFA.
What Your Agent Actually Does
Your agent performs client account reconciliation weekly — flagging discrepancies, residual balances, and SAR compliance issues before they become accountant's report qualifications.
Performs 5-weekly reconciliation (or more frequently)
SAR Rule 8.3 requires reconciliation at least every five weeks. Your agent runs it weekly — comparing client bank balance, client ledger total, and list of individual client balances. Discrepancies are flagged immediately rather than discovered at the accountant's report stage.
Identifies residual balances on completed matters
SAR Rule 6.1 requires client money to be returned promptly when there's no longer a reason to hold it. Your agent identifies residual balances on completed matters — the small sums that accumulate when nobody remembers to return £14.50 to a former client. A common and easily preventable SAR breach.
Flags delayed office-to-client transfers
Billing a client but not transferring the costs from client to office account promptly is a Rule 5 issue. Your agent identifies where transfers are overdue, ensuring office money doesn't sit in the client account.
Detects anomalies in client account movements
Unusual patterns — large round-sum transfers, frequent inter-client movements, client account used for non-legal transactions — your agent flags anomalies that could indicate SAR breaches or, in the worst case, fraud. Early detection protects the firm and its clients.
Produces COFA-ready reconciliation reports
Each reconciliation produces a structured report for the COFA: bank balance, ledger balance, client balance list, discrepancies identified, residual balances flagged, and actions required. The evidence that your accountant — and the SRA — expect to see.
The real numbers.
| Bookkeeper/accounts manager time on reconciliation | £1,500–£3,000/year |
| Qualified accountant's report costs | £2,000–£8,000/year |
| SRA investigation risk from qualified report | Variable (26.2% of forced closures from SAR breaches) |
| Realistic annual cost | £3,000–£6,000 |
| Agent build (one-off, configured to your accounts system) | £2,500–£4,000 |
| Monthly running costs (hosting + AI usage) | £80–£150/month |
| SAR regulatory updates | Included in first year |
| Realistic first-year total | £3,460–£5,800 |
Client account reconciliation is the single most common SAR compliance failure — and a qualified accountant's report goes straight to the SRA. For small firms where the COFA is also a fee-earning partner, ensuring reconciliation happens every five weeks without fail is harder than it sounds.
Your agent makes it automatic. Reconciliation runs weekly, discrepancies are flagged immediately, and the COFA has documented evidence of compliance at all times.
Good fit / not a fit.
This works brilliantly for:
- Firms holding client money (conveyancing, probate, litigation)
- Firms where reconciliation has been late or inconsistent
- COFAs who find the 5-weekly cycle difficult to maintain alongside fee-earning
- Firms that have had qualified accountant's reports
This probably isn't for you if:
- Your firm doesn't hold client money (third-party managed accounts only)
- You have a dedicated accounts team managing reconciliation to a high standard
- Your practice management system handles reconciliation automatically
Let's talk.
We'll start with your client account volume, how you currently handle reconciliation, and whether your accountant's reports have ever been qualified. Usually a 10-minute conversation.
hello@nimblecroft.com