The Gazette 1992

GAZETTE

"Set t ing up Prac t i ce in the 9 0 s "

NOVEMBER 1992

At the Younger Members Seminar were l-r: Michael Nugent, Solicitor; Adrian Buckley,

Bank of Ireland; Michael McSweeney, Accountant and Patrick Casey, Younger Members

Committee.

The Younger Members Committee

staged the second of a series of

seminars on "Setting up Practice in

the 90s in Cork on 2 October. The

80 participants heard about the

importance of getting to know your

bank manager, the assistance

available from the Law Society, and

how to deal with the firm that

previously employed you. Committee

member, Pat Casey, reports.

Adrian Buckley,

Deputy Manager,

Bank of Ireland, South Mall, Cork,

emphasised the importance of the

solicitor setting up in practice being

totally open with his or her bank

manager. He also encouraged any

solicitor setting up in practice to be

as thrifty as possible. For example,

acquiring a large motor car shortly

after setting up would not normally

endear a solicitor to his or her bank

manager! Referring to the recent

interest rate changes,

Adrian Buckley

said it was important for a solicitor

to shop around and obtain the best

possible deal.

Michael McSweeney,

Chartered

Accountant, gave the audience the

benefits of his experience as an

accountant operating as part of the

Law Society's Practice Advisory

Service Scheme. He encouraged

solicitors intending to set up to

contact the Law Society who would

then put that solicitor in touch with

the local accountant operating on

the Practice Advisory Service

Scheme. Consultations between the

accountant and the solicitor are

provided free of charge by the Law

Society under the scheme. At the

first consultation the accountant will

sit down with the solicitor and will

go through such matters as the

installation of an appropriate

accounting system; maintenance of

proper accounting records;

compliance with the Solicitors

Accounts Regulations, etc.

A later follow-up consultation is

provided. Michael McSweeney

emphasised the confidential nature

of the consultation between the

solicitor and the accountant

operating the Practice Advisory

Scheme. He went on to say that the

scheme was not intended to interfere

with the services provided by the

solicitor's own accountant but rather

was intended to supplement such

advice and assistance.

Michael Nugent,

a solicitor who had

set up in practice on his own a few

years ago, outlined what it was

actually like setting up in practice.

The first matter to be considered, he

suggested, was whether the solicitor

would set up on his or her own or

go into partnership with another.

The idea of office sharing was

arguably the best of both worlds.

Choice of location for the solicitor's

office was the next decision. In the

case of an urban practice ease of

parking was an important factor in

choosing a location. Advocating

keeping overheads low, Michael

Nugent said that the biggest expense

in a solicitor's practice is drawings.

In relation to other expenditure he

suggested spreading these costs over

as long a period as possible.

Michael Nugent strongly encouraged

those in attendance to get to know

their bank manager now and even

suggested that they take out a loan

at this stage! He suggested that a

solicitor who was setting up in

practice should bring projections

with him or her to the first meeting

with his bank manager. Emphasising

the importance of complying with

the Solicitors Accounts Regulations,

he said that it was vital that the

solicitor's bank is made aware of the

difference between office and client

accounts. The bank should also be

requested to return used cheques to

the solicitor's practice.

Michael Nugent went on to deal

with such questions as: choice of

notepaper; who to notify when

setting up and also timing.

The audience was most interested in

his comments as to how to deal with

your former firm when setting up.

Michael Nugent pointed out that the

files and the clients belong to the

firm that employed you and that a

solicitor intending setting up in

practice cannot poach or lure these

clients away. However, he pointed

out that a solicitor could inform

clients that he or she was leaving

your former firm. If clients ask to

follow you he suggested that you

should obtain a written authority

from them, ask to take up the file

from the firm and then agree outlays

and fees with the firm.

The Younger Members Committee

intends to stage the seminar at other

locations around the country in the

near future. The seminar was