Running a Float (Scotland)

12/09/2024
Knowledge

How To

LEAP contains all of the functions required to maintain compliance with the Law Society of Scotland’s audit requirements but does require some additional steps above the standard LEAP functionality.

This article will outline how to setup LEAP to ensure that you can run a float and advise of the best practices to ensure you remain compliant with your regulatory body.

In order to utilise the billing capabilities of LEAP, we strongly recommend that disbursements (also known as outlays) are paid from the office account. If you wish to use client monies for disbursements, billing will need to be completed manually as payments made from client account cannot be included on bills. You will receive warnings that you are overdrawing LEAP matters if you choose to do so. LEAP will not stop you from posting in this scenario. You will receive two warnings – one telling you that you are overdrawing the matter the other the cashbook. This latter warning should be used as a trigger to check the float and take appropriate action.

Setup

All monies in LEAP must be assigned to matter – there is no way of moving monies into or out of the client account without assigning it to a matter. We do not have the capability to move monies on a cashbook only level, which means we must create a matter that will behave as the float.

In order for our automation tools to work correctly, you must follow the steps to create the Float Matter exactly. Click here for more details on setting up your Float Matter.

Operating the Float

To take monies from your firms (office) bank account, you will need to post a payment out of the Office Float nominal ledger in Xero and receipt this into the Float Matter.

Should you wish to use monies from invoices to top-up the float, you would need to follow the following posting routine:

Post the invoices to office account (this will ensure the VAT is correctly moved into Xero).
Post a firm level client to office transfer (you can do this singly should you wish).
Receipt the amount you are transferring into the Float Matter as a client receipt (use EFT).
Post a payment from the float nominal ledger in Xero for the amount you are transferring.
Do not move any money at the bank – simply contra the client to office transfer with the client receipt and office payment.

To move monies back to the office account from the float, simply post a client payment from the Float Matter and a receipt into the Xero nominal ledger for the float and transfer the money at the bank.

Reporting the Float

The float can be reported on by clicking the LEAP Menu > Reports > Client Funds > Matter Float.

Last Modified Date

12/09/2024 2:35 am

Title

Running a Float (Scotland)

URL Name

Running-a-Float-Scotland

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