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deputation should take up as an additional matter
with the association the question of doctors attending
patients and making reports to insurance companies
without the patients' consent.
Wearing of robes in court by solicitors and
District Justices
On a report from a committee the Council decided
to inform the District Court Rules Committee that
as there is a division of opinion in the profession on
the question of the wearing of robes in the District
Court no rule should be made on this subject by the
committee affecting solicitors having regard in
particular to the absence of robing facilities in many
country court houses.
Co-option of new member.
On the motion of the President seconded by
Mr. Collins it was resolved unanimously under
bye-law 38 that Mr. Raymond A. French be co-opted
from the general body of the Society as a member
of the Council to fill the vacancy caused by the
resignation of Mr. de Vere White.
Circuit Court Rules Committee
It was unanimously resolved that Mr. Joseph P.
Tyrrell be appointed as the Society's representative
on the committee for five years from the expiration
of his present term of office on the zyth January,
1962.
Incorporated Council of Law Reporting
It was unanimously resolved that Mr. J. B.
MacGarry be appointed as one of the Society's
members of the Incorporated Council of Law
Reporting in place of Mr. de Vere White.
Committee members
It was resolved that Mr. Raymond A. French be
appointed a member of the Court of Examiners in
place of Mr. de Vere White and that the following
members of the Southern Law Association be
appointed to committees :
Finance Committee—John F. Foley ; Privileges
Committee—Gerald Y. Goldberg ;
Court Offices
and Costs Committee—Cornelius J. Daly.
CONTROL OF DISBURSEMENTS IN A
SOLICITOR'S PRACTICE
The control of disbursements is very important
since it is related to working capital.
It is worth
remembering that four out of five people who fail
in business do so because of lack of working capital.
In a solicitor's practice disbursements may be
classified as direct client disbursements
(stamp
duties, counsel's fees, court fees, etc.) and indirect
disbursements (rent, salaries and other overheads).
Probably the majority of solicitors do not distinguish
between the two for accounting purposes. At the
end of the financial year the total of direct and
indirect disbursements is set off against income and
profit is reckoned as the excess of income over all
disbursements.
It would, however, be better accounting practice to
strike separate balances for
(a)
direct disbursements
for clients against clients' disbursements received
and
(b)
indirect disbursements against profit costs
received, and
to carry out
this exercise more
frequently than once a year, particularly in regard
to the direct client disbursements received and paid.
If disbursements are going out faster than they come
in it may indicate an expansion in your practice ; on
the other hand it may indicate loss of working capital.
Disbursements for clients in advance of reimburse
ment are in effect interest free loans. If you pay out
counsel's fees, stamp duties or court fees for a client
and wait a month, six months or a year until you
recover the amount as part of a general bill of costs
it may not matter very much in the particular case.
If you do this for twenty, thirty or fifty clients the
amount of these interest free loans can reach quite
startling dimensions. In any efficient business there
must be a satisfactory and efficient turnover of
working capital.
There should therefore be continuous and efficient
control at the earliest possible stage. Six practical
points are suggested :
(1) An effective general office system for all cash
and cheque transactions.
Deviations from this
system should be allowed only after consideration
and if necessary, consultation with your auditor.
(2) At the initial interview for any new business
estimate
the probable amount of direct client
disbursements and probable duration of the matter.
Where necessary request the client for prepayment
of direct disbursements.
If part only is prepaid
inform the client that further interim disbursement
accounts may be submitted.
(3) Following on (2) establish an interim dis
bursement bill system and carry it into effect when
necessary—possibly at regular monthly intervals.
Most clients prefer to pay
their bills in small
instalments rather than in one large amount.
(4) Keep a continual check on unpaid, and more
particularly undrawn, bills of profit costs.
(5) Establish a regular system of furnishing bills
of profit costs.
Reminders should go out after
60, 90 and 120 days.