How Can a Solicitor Check If Their Accountant Is SRA-Approved

An SRA-approved accountant is a qualified, independent professional who meets the Solicitors Regulation Authority’s eligibility criteria to carry out Accountant’s Reports for solicitors.

The SRA requires firms that hold client money to have their accounts examined annually by a suitably qualified accountant. This process ensures:

• Client funds are properly protected.

• The firm complies with the SRA Accounts Rules.

• Any breaches or irregularities are reported promptly to the SRA.

To issue an Accountant’s Report, an accountant must be a member of a recognised supervisory body such as the Institute of Chartered Accountants in England and Wales (ICAEW), the Association of Chartered Certified Accountants (ACCA), or a similar professional body that monitors audit and accounting standards.

The accountant must also hold the appropriate practising certificate and be independent of the solicitor’s firm.

Why Solicitors Must Use an SRA-Approved Accountant

The SRA Accounts Rules place the responsibility for client money protection directly on the solicitor’s firm. Using an accountant who is not authorised or approved could lead to:

• Rejection of the annual Accountant’s Report.

• Delays or breaches in SRA compliance.

• Possible regulatory action against the firm.

• Financial or reputational damage.

Therefore, solicitors must ensure that their appointed accountant meets all the criteria before beginning the engagement.

How to Check If an Accountant Is SRA-Approved

There is no separate public list of “SRA-approved accountants,” because the SRA relies on the professional status of accountants regulated by recognised supervisory bodies. However, solicitors can verify approval and eligibility by following these steps.

1. Confirm Membership of a Recognised Professional Body
Check that the accountant or their firm is registered with one of the following:

• Institute of Chartered Accountants in England and Wales (ICAEW)

• Association of Chartered Certified Accountants (ACCA)

• Chartered Accountants Ireland (CAI)

• Institute of Chartered Accountants of Scotland (ICAS)

You can verify membership on the relevant organisation’s website by searching for the accountant’s name or firm.

2. Ask for a Practising Certificate
The accountant must hold a current practising certificate from their professional body. This certificate proves they are authorised to carry out audit or assurance work, including solicitor’s accountant’s reports.

Solicitors should request a copy of the practising certificate and check the expiry date and issuing body.

3. Ensure Independence from the Firm
The SRA requires that the accountant be independent of the solicitor’s firm. This means they must not have any financial or personal interest in the practice and must not be involved in the firm’s management or decision-making.

Solicitors can confirm this by reviewing the engagement letter and ensuring it contains a clear independence declaration.

4. Verify Experience with SRA Accounts Rules
An accountant who is technically qualified but lacks experience with the SRA Accounts Rules may not be suitable. Solicitors should ask for:

• Evidence of prior work for law firms.

• References from other solicitors.

• Details of training or continuing professional development (CPD) in SRA compliance.

5. Check with the SRA if in Doubt
If you are unsure whether your chosen accountant meets the SRA’s eligibility requirements, you can contact the SRA’s Professional Ethics Helpline. They can confirm what qualifications and supervisory body registrations are necessary for a valid Accountant’s Report.

What the Accountant’s Report Covers

An SRA-approved accountant will review the solicitor’s books and records to check compliance with the SRA Accounts Rules. The review focuses on:

• Segregation of client money from office money.

• Proper operation of client accounts.

• Timely banking and reconciliation of client funds.

• Compliance with authorisation and record-keeping requirements.

If the accountant finds serious breaches, they must qualify the report and send it to the SRA immediately. If no material issues are found, the report is usually retained by the firm.

What to Include in the Engagement Letter

When appointing an accountant, solicitors should ensure the engagement letter clearly sets out:

• The accountant’s role and scope of work.

• Confirmation that the accountant is independent and holds a valid practising certificate.

• The timeline for completion of the Accountant’s Report.

• Fees and terms of engagement.

• How findings or breaches will be reported.

Having a clear engagement letter demonstrates good governance and helps prevent misunderstandings about responsibilities.

Signs Your Accountant Is Not Suitable for SRA Work

If an accountant lacks experience with law firm accounting, it can lead to compliance risks. Warning signs include:

• Unfamiliarity with client money rules.

• Failure to reference the SRA Accounts Rules in their proposal.

• No practising certificate or professional body membership.

• Lack of understanding of law firm structures and terminology.

In such cases, it is best to seek an alternative accountant who regularly works with solicitors.

Benefits of Using an Experienced SRA Accountant

Appointing an accountant who understands the legal sector offers several advantages:

• Reduced compliance risk: The accountant knows what the SRA expects.

• Efficient reporting: They can identify and correct minor issues before they become serious breaches.

• Practical advice: Experienced accountants can help improve client money controls and internal systems.

• Peace of mind: Solicitors can focus on their legal work, confident that financial compliance is handled professionally.

How an Accountant Becomes SRA-Eligible

To carry out an SRA Accountant’s Report, the accountant must:

• Be qualified under one of the recognised supervisory bodies.

• Hold a valid practising certificate for public practice.

• Be independent of the law firm.

• Understand and apply the SRA Accounts Rules.

• Use professional judgement to identify and report breaches.

Most professional accounting bodies require members undertaking SRA work to complete regular training on solicitor account audits and updates to SRA regulations.

How an Accountant Can Lose SRA Approval

If an accountant fails to meet the standards required by their professional body or the SRA, they can be disqualified from preparing solicitor reports. This may happen if they:

• Breach ethical or independence rules.

• Submit inaccurate or misleading reports.

• Lose their practising certificate or membership status.

Solicitors should verify their accountant’s credentials each year before renewing engagement.

Summary

To check if your accountant is SRA-approved, confirm that they are a qualified member of a recognised accounting body, hold a valid practising certificate, and are independent of your firm. You can also ask about their experience with the SRA Accounts Rules and, if unsure, verify with the SRA directly.

Working with an experienced and properly authorised accountant ensures your law firm remains compliant, protects client funds, and avoids regulatory issues. Taking the time to verify your accountant’s approval status each year is a vital step in maintaining professional integrity and meeting SRA requirements.