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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
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
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.
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.
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