The Gazette 1972

Three-in-one Accounting Systems for Solicitors

Irish solicitors have been much slower than their English counterparts to appreciate the advantages of the three- in-one system of accounting. Many Irish solicitors may not appreciate that such systems do comply with the Solicitors Accounts Regulations at present in force. In addition the systems now available designed speciallv for solicitors incorporate the benefits of research and experience in England where the systems have been widely used for a number of years. Time wasting The two important advantages of the three-in-one system are its ease of operation and the saving of time for both the solicitor and the cashier wbich its intro- duction can effect. From these other advantages spring. The conventional method of book-keeping usually consists of all or a number of the following books of prime entry, clients' account cash book office account cash book, petty cash book, transfer journal and bills book. Entries are made to the appropriate book of prime entry and are subsequently posted to the client ledger. From the time to time the clients' ledger accounts will require to be balanced. The three-in-one system is so called because these three operations—original entry, ledger posting, balancing—are reduced virtually to a single operation. Three-in-one method The actual operation of a three-in-one system is as follows. An entry is made on, for example, the clients' bank account sheet. This sheet is placed in position so that it registers with the appropriate client's ledger card both vertically and horizontally. One entry is then made on the client's bank account sheet and by means of carbon this registers on the client's ledger card. The effect of this is to reduce the amount of writing by 50 per cent, a worthwhile saving in a busy office. By the same token the possibility of a copying error is elimin- ated. The client's ledger card has a 'Balance Column' in addition to the DR and CR columns in both client's account and office account sections. All the sheets of the books of prime entry have an "Old Balance" column. An entry thus entails listing the transaction (DR to CR), updating the balance and bringing down the old bal- ance figure to the column provided. To prove the Views of solicitors on the problems of late farm inheri- tance are urgently sought by a working party assigned by the President, Mr. James W. O'Donovan, to pre- pare a submission on the subject to a Study Group set up by Macra na Feirme. Macra has invited the Law Society to advise specifically on the legal aspects of the problem, but the broad inquiry also covers economic and social aspects. The overall purpose of the project is to provide infor- mation for the survey whicb has been commissioned in conjunction with An Foras Taluntais to indicate pos- sible areas where new Government policy and educa- tional programmes might be initiated.

accuracy of the entries made it is then necessary only to add the four columns of figures on any of the books of prime entry that is DR, CR, Balance, Old Balance and to apply the simple formula that the old balance plus receipts minus payments must be equal to the balance. To this extent the three-in-one system may be said to be self-balancing. A proven balance is available on each client account at any time and each client account is fully up to date. The availability of a proven balance in each client account is of great assistance to an auditor who can easily extract the information which allows him to furnish the certificate required under the Solicitors Accounts Regulations to the effect that the total of the balances in the clients account of the clients ledger agrees with the amount in the client account at the bank. Varying equipment The great advantage of the system also is its adapta- bility. There are systems suitable for the smallest and the largest of offices and the smaller systems are capable of developing to keep pace with the development of the practice. A variety of equipment is available to meet individual needs. In some systems registration of prime entry and ledger sheet is achieved by the use of a peg board. The three-in-one system utilises a collator which is a flat writing surface with a row of studs and which is placed under the sheets to be written together while the sheets remain secure in a binder thus eliminating the possibility of the forms being soiled or mislaid.

Advantages Some of the advantages of the system have already been referred to. Obviously the amount of writing and the risk of error by transcription are considerably re- duced and balancing is greatly simplified with a conse- quent saving in time for the cashier and the auditor. The ledger is always posted up to date and the latest position with regard to a client's account can be ascer- tained at a glance. The systems are cheap, compact and adaptable. Finally the three-in-one system is simple to operate apd neither you nor your cashier will have any difficulty in adapting to it. Problems of Late Farm Inheritance

Macra na Feirme has received submissions over the past two years from people with special experience relevant to the problem. The current research programme was drawn up by the Agricultural Institute at the instigation of Macra na Feirme; Allied Irisb Banks are providing £5,000 to sponsor the project. The Late Inheritance Study Group hopes to submit its report to the Government by Sep- tember of this year. To assist early completion of the Law Society's sub- mission on the subject members are asked to send their comments as early as possible, but not later than 15th April 1972. 76