When you properly require payment of office costs and raise a bill to a client (R17.2), the payment of this can often lead to a reportable breach.
If sufficient funds are already on the client account and are earmarked for costs, they must be transferred to the office account within 14 days.
If not, and funds are later received from a client, they can be:
- Paid directly into the office account and, by the end of the second working day, the amount due for any unpaid professional disbursements must be used to settle such or transferred to the client account.
- Paid directly into the client account and the amount to clear the bill transferred to the office account within 14 days of receipt.
Have you recently received a payment for a bill? Implementing a system to determine the composition of the funds will help to ensure that the payment of costs are dealt with appropriately as above.