The Gazette 1982

JULY/AUGUS T

1982

GAZETTE

printed form of letter or of a word processor, to produce similar though not identical letters, would be of advantage. Wide Front Reduces Time Many of those working in administration insist on completing all activities in sequence. For example, they may pass the Irish Schedule of Assets and extract Irish Probate before lodging the English or foreign schedules, which could have been passed at the same time as the Irish — and they may wait until the winding up stage before starting to deal with Income Tax. Unnecessary working in sequence merely extends the total time it takes to complete an administration. It should be possible to undertake many activities in parallel. Work should always be progressed on the broadest possible front, which will reduce in width as successive stages are completed. This is greatly facilitated by having an effective control system such as that suggested here. The systems proposed above are, of course, infinitely variable and can be tailored to suit the circumstances of any individual practice. The thing is to have effective planning and essential control which will enable efficient administration of estates and save it from becoming a "poor relation" of other activities in the office. • Comment (Continued from P. 171) the additional V.A.T. procedures. The greatest difficulty will probably arise in adapting the many and various mechanical or electronic (but non- computer) accounting machines that have no capacity for an additional V.A.T. function. Such systems, which at present perform very simply and satisfactorily, will, in many cases require to be supported by a range of additional books of "first entry", which must be maintained by hand and which will necessarily entail a very considerable input of book-keeping time. In terms of cost economics, many practices may conclude that the time has come to consider installing a completely new — and, preferably, computerised — Accounts system. As it has been explained to the profession that solicitors have been brought into the V.A.T. net in order to conform with E.E.C. regulations and agreements, it is worth remarking that the confor- mity would seem to begin and end with the principle. The rate of V.A.T. imposed in this Country — 18% — would appear to be the second highest in the E.E.C. (the lowest V.A.T. rate being that of Germany, at 5%), which confers upon us the distinction of boasting the second highest rate of V.A.T. and the highest rate of Stamp Duty. And it should also be clearly understood that the introduction of the solicitors' profession into the V.A.T. system costs the profession nothing more than the additional administrative trouble involved. It is our clients who pay; regrettably, the increased cost of law must inevitably fall hardest upon that section of the community which needs law most. •

wasted in trying to dig out masses of details often buried in correspondence. It will also make it much easier to pick up the threads again after stoppages because the Administration Record provides — laid out in simple form — a cross section of all the detail which will be required for ongoing decisions and reports. A properly maintained Administration Record progressively builds up what is almost a draft Administration Account, without need for many changes. It is not suggested that the Administration Record should be written up after every transaction — this would obviously be a great waste of time. It is suggested that information be extracted from the General Correspondence and Lodgments files and transferred to the Administration Record at logical break points — first, for example, when the Schedule of Assets is completed (when the opening balance sheet is available); second, when most assets have been collected —to see what is available for debts and legacies and what is outstanding; third, at the discharge stage, to ensure this is complete. The system represents a satisfactory working compromise between having no book-keeping on the one hand and full continuous accounting treatment (balance sheet, journals, asset and liability accounts) on the other hand — a compromise that should be effective in terms of performance and economic in terms of cost. Winding-Up and Report Since the Administration Record records the extent to which all assets, legacies, and debts have been dealt with, it tells the Solicitor when any stage has been reached at which it would be appropriate to prepare a Report. It also highlights any items outstanding which need attention and which may be holding up the Report and final winding-up, without the need for wading through masses ot correspondence. . . When it is decided to make a Report, the solicitor will find that he has in his Administration Record and Lodgments File convenient and ready structured lists of all the items he needs to include. . . By the use of such a system, constant delegation is easily achievable by breaking administration work down into its basic tasks - obtaining valuations, circulating Grants, paying bills - which can then be delegated and checked off periodically in the Administration Record. Standard and Printed Letters There is also a strong case, if effective delegation is to be achieved, for standard letters, memos and receipt forms to be prepared. Many letters sent in Administration cases are so similar that the use ot a Delegation

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