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Client Account Course
Client Account Course
Workbook
Version: 2017-001 Last Modified: September 5, 2017
©2017 Immigration Consultants of Canada Regulatory Council. No part of this publication may be used or reproduced in any manner whatsoever without the prior written permission of the Council, except in the case of non-commercial use of brief quotations accompanied by proper citation.
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Table of Contents
Introduction…………………………………………………………………………………………………...2
Module 1: Code of Professional Ethics and Client Account Regulation…………….3
Module 2: Client Account Fundamentals………………………………………………………..4
Module 3: Record Keeping...……….………………………………………………………………….8
Final Reflection…………………………………………………………………………………………. …15
Resources…………………………………………………………………………………………………. …16
Appendices
Appendix A—Financial House Visual…………………………………………………………….17
Appendix B—Detailed CA Reconciliation Statement Samples……………………….18
Appendix C—Detailed Client Account Reconciliation Template…………………….23
Appendix D—Client List Template………………………………………………………………..26
Appendix E—Bookkeeping Process Visual #1………………………………………………..27
Appendix F—Bookkeeping Process Visual #2………………………………………………..28
Appendix G—Model 1 Bookkeeping Journal Entries……………………………………..29
Appendix H—Model 2 Bookkeeping Journal Entries……………………………………..30
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Introduction What are your expectations for today’s Client Account (CA) course?
Pop Quiz
Question Response 1) Every member is required to have a client account,
unless he/she has received an exemption.
True or False
2) How many days does a member have, upon receipt of money that is to be held on behalf of a client, to deposit it into his/her CA?
a) 5 business days b) 5 calendar days c) 14 business days d) 14 calendar days
3) When is client money, which has been received by means of an electronic funds transfer, deemed to be deposited?
a) When the Client completes the online transaction.
b) When the Member is informed of the deposit by the Financial Institution.
c) When the Client is informed of the deposit. d) When the bank physically receives the funds.
4) Can a member maintain one or more CA in one or more currencies?
Yes or No
5) Any interest earned on money held in a CA shall be credited to the member and it must remain in the CA, unless the client requested his/her own CA, in which case all of the interest earned belongs to the client.
True or False
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Module 1: Code of Professional Ethics and Client Account Regulation Group Task In your small group, review the Articles from the Code of Professional Ethics which are identified in the Venn diagram below. Then, identify Sections from the Client Account Regulation that correspond to those articles. List all Sections that overlap in the appropriate part of the Venn diagram.
A.6 Quality Service
A.6 Quality Service
A.3 Acting in
Good Faith and
A.2.2.9 Avoiding
Misconduct
A.5 Competence
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Module 2: Client Account Fundamentals Client Account Terminology—Matching 1) client account a) _____ Keeping account books or systematic records of
money transactions (distinguished from accounting).
2) disbursement b) _____ A bank account opened by a member at a financial institution in which account the member holds personal funds.
3) bookkeeping c) _____ An itemized bill for goods sold or services
provided, containing individual prices, the total charge, and the terms.
4) general/business account d) _____ Where the member goes over his/her CA records/bookkeeping system and compares it to
his/her bank statement to ensure that there are no unexplained discrepancies.
5) money e) _____ Is a bookkeeping term for the place where a
member tracks deposits and withdrawals made to the CA.
6) reconciliation f) _____ Includes current coin, government or bank
notes, cheques, drafts, credit card sales slips, post office orders and express and bank money orders.
7) client liability account g) _____ A savings or chequing account opened by a
member at a financial institution in which account the member holds funds received from or on behalf of one or more clients and which is designated in the member’s records as a client account.
8) invoicing h) _____ Miscellaneous expenses incurred by a member
in the course of providing services to a client (e.g. government filing fees).
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Operations of a Client Account Reflect on your practice and identify the basic operations of a CA. What do you do with your CA?
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Comparing the Client Account Deposit Models Model 1: All Funds Deposited in Client Account
Model 2: Unearned Funds Deposited in Client Account
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i. What is the main difference between the two models?
ii. What are the pros and cons of each model?
Model 1: All Funds Deposited in CA
Model 2: Unearned Funds Deposited in CA
Pros
Cons
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iii. What personal experiences have you had in working with either of the two models?
Module 3: Record Keeping
The three pieces of information required by ICCRC for the compliance audit process include (for both models and any record keeping system):
1) _________________________________________________________________________________
2) _________________________________________________________________________________
3) _________________________________________________________________________________
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Client Account Reconciliation Activity
Consider the client account documents below (i.e., documents a-c) and complete the detailed client account reconciliation statement and client list on pages 12-13.
a) Client Liability Account
Client Liability Account
TD Canada Trust
Account No. 778
Date (month/dd/yy)
Client Transaction Description
Transaction Details
Cheque/ Debit (Out)
Deposit/ Credit (In)
Running Balance
Apr-30-13 ZM-100 Electronic funds transfer-from A/C 847591
unearned client fee
400.00 2,100.00
May-01-13 WL-103 Electronic funds transfer-from A/C 25871
unearned client fee
1,200.00 3,300.00
May-08-13 SJ-102 Electronic funds transfer-to A/C 777
earned and invoiced client fee
900.00 2,400.00
May-11-13 WL-103 Money order #015420 purchased-to Australian authorities
invoiced police certificate fee
150.00 2,250.00
May-14-13 MK-104 Cheque 506-to MK-104
unused and refunded client fee
50.00 2,200.00
May-20-13 WL-103 Electronic funds transfer-to Gov't Canada
filing fee to Gov't Canada
125.00 2,075.00
May-21-13 WL-103 Electronic funds transfer-to A/C 777
earned and invoiced client fee
500.00 1,575.00
May-30-13 MS-101 Cheque 456-to A/C 777 (General Account)
invoiced translation fee
200.00 1,375.00
May-31-13 SM-105 Electronic funds transfer-from A/C 529786
unearned client fee
300.00 1,675.00
May-31-13 SH-106 Cheque 170-from SH-106
unearned client fee
3,000.00 4,675.00
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b) CA Bank Statement (May 2013)
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c) Client List (April 2013)
Client List Money held on behalf of each client
As of April 30, 2013
Client(s) (protect client confidentiality by using client
codes—do NOT use client names)
Amount held on behalf of each client
Deposited in CA (✓)
BL-98 0.00
PT-99 0.00
ZM-100 450.00 ✓
MS-101 500.00 ✓
SJ-102 1,100.00 ✓
MK-104 50.00 ✓
TOTAL: This number MUST EQUAL the Client Liability Account balance (component 7), as of the end of this particular month.
2,100.00 ✓
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Detailed CA Reconciliation Statement (May 2013)
John Smith – Client Account Detailed CA Reconciliation Statement, May 31, 2013
1 Bank Balance as of April 30, 2013
2 Less withdrawals cleared the CA for the month of May 2013
Date Method of transaction Client code Amount
May-08 Electronic funds transfer
SJ-102 -900.00
Total Withdrawals
3 Add deposits made and cleared the CA for the month of May 2013
Date Method of transaction Client code Amount
Total Deposits
4 Client Account Balance as of May 31, 2013
5 Less withdrawals NOT yet cleared the CA as of May 31, 2013
Date Method of transaction Client code Amount
Total Outstanding Withdrawals
6 Add deposits made but NOT yet cleared the CA as of May 31, 2013
Date Method of transaction Client code Amount
Total Outstanding Deposits
7 Book (Client Liability Account) Balance as of May 31, 2013
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Client List (May 2013)
Client List Money held on behalf of each client
As of May 31, 2013
Client(s) (protect client confidentiality by using client
codes—do NOT use client names)
Amount held on behalf of each client
Deposited in CA (✓)
TOTAL: This number MUST EQUAL the Client Liability Account balance (component 7), as of the end of this particular month.
Case study
Doris is expecting to receive a cheque from Client 102 any day now. However, her rent is due
tomorrow and her general account doesn’t quite cover the entire cost. She decides to withdraw the
needed money from her CA with the intention of “balancing the books” just as soon as she gets the
cheque from Client 102. However, the cheque never arrives as Client 102 is dissatisfied with the result
of his application and is refusing to pay.
In the meantime, an expensive filing fee arises for Client 86, which Doris can’t cover through the CA
due to the extra money she withdrew to cover the rent. Doris decides not to file the application right
away, as she can’t afford to, but she tells Client 86 that she has filed the application.
When Doris has enough money to file Client 86’s application, it is sent back to her because it was
missing Client 86’s signature in a key spot.
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Case Study—Discussion Questions In your small group, discuss and note your responses to the following questions: 1) How did Doris violate the Client Account Regulation? 2) How did Doris violate the Code of Professional Ethics?
3) What are the implications of Doris’ actions? 4) What action should ICCRC take?
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Final Reflection
1. Which client account deposit model best suits my needs and practice? How?
2. Now that I have completed the Client Account Course, the one practice that I would like to
improve in relation to my own business is:
3. I will concretely improve the practice described above by… (list action points, steps you need
to take, and possible timelines).
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Resources Books
Barker, Brooke C.W. (2009). CDN ED Basic Bookkeeping: An Office Simulation: 6th edition. Toronto: Nelson College Indigenous.
Bellegoni, Elvira. (1998). Bookkeeping & Administration for the Smaller Business. Ohio: Etta Publishing Company.
Entrepreneur Press. (1997). Business Owner's Guide to Accounting and Bookkeeping (PSI Successful Business Library): 1st edition. New York: Entrepreneur Press.
Epstein, Lita. (2005). Bookkeeping for Dummies: 1st edition. New Jersey: Wiley Publishing, Inc.
Fox, Jack. (1995). Accounting and Recordkeeping Made Easy for the Self-Employed. New York: John Wiley and Sons, Inc.
Gallagher, Richard. (1990). Bookkeeping Made Simple. New York: Doubleday.
Kravitz, Wallace W. (1999). Bookkeeping the Easy Way (Barron's Easy Way). New York: Barron’s Educational Series.
Mohr, Angie. (2003). Bookkeeper's Bootcamp: Get a Grip on Accounting Basics. Vancouver: Self-Counsel Press.
Mohr, Angie. (2003). Financial Management 101 - Get a Grip on Your Business Numbers. Vancouver: Self-Counsel Press.
Pinson, Linda. (2001). Keeping the Books: Basic Recordkeeping and Accounting for the Successful Small Business: 5th edition. Chicago: Dearborn Trade Pub.
Websites AccountingPage.com. (2003). Accounting Page—Comprehensive Accounting Resources and
Directory: Bookkeeping. Retrieved from http://www.accountingpage.com/index.php?t=sub_pages&cat=64.
Tutorials Popular accounting packages, such as Quickbooks® and Simply Accounting®, have detailed tutorials included.
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Appendix A Financial House Visual
Financial Institution (e.g., TD, RBC, Desjardins)
Client Account (e.g., account #7502) Receive a bank-issued
statement
General Account (e.g., account #6002) Receive a bank-issued
statement
Company Records (Your personal records/books on your accounts)
Client Liability Account (e.g., account #7502)
Your own records
Income Account (e.g., account #6002)
Your own records
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Appendix B
Detailed CA Reconciliation Statement Samples
a. CA Reconciliation Statement Components
XY Business
Bank Reconciliation, Oct 31, 2011
Client Account
1 CA bank balance as of Sept 30, 2011 15,000.00
2 Less withdrawals cleared the CA for the month of Oct -33,155.15
3 Add deposits made and cleared the CA for the month of Oct 119,710.48 86,555.33
4 CA balance as of Oct 31, 2011 101,555.33
5 Less withdrawals NOT cleared the CA as of Oct 31, 2011 -17,400.00
6 Add deposits made but NOT yet cleared the CA as of Oct 31, 2011 5,000.00
7 Equals consultant's Client Liability Account balance as of Oct 31, 2011 89,155.33
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b. Detailed CA Reconciliation Statement—Ledger Sample
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c. Detailed CA Reconciliation Statement—Excel® Sample
1 Bank Balance at Sept 30, 2011, per bank statement 15,000.00
2 Less Cheques Written and Cleared the bank in Oct
26/09/2011 Cheque 1 Client 100 146.83-
07/10/2011 Cheque 1 Client 101 750.00-
17/10/2011 Debit Client 102 18.48-
27/10/2011 Cheque 4 Client 104 2,218.40-
28/10/2011 Cheque 3 Client 105 30,000.00-
31/10/2011 Debit Government of Canada 21.44-
Total Cheques Written 33,155.15-
3 Add Deposits Made and Cleared the bank in Oct
07/10/2011 Deposit Client 102 15,000.00
27/10/2011 Deposit Client 103 15,000.00
31/10/2011 Deposit Client 106 89,710.48
Total Deposits Made 119,710.48
4 CA balance as of Oct 31, 2011 101,555.33
5 Less Cheques written but NOT cleared the bank as of Oct 31, 2011
31/10/2011 Cheque 6 Client 108 15,000.00-
28/10/2011 Cheque 5 Client 107 2,400.00-
Total Outstanding Cheques 17,400.00-
6 Add Deposits made but NOT yet cleard the bank as of Oct 31, 2011
31/10/2011 Deposit Client 101 5,000.00
Total Outstanding Deposits 5,000.00
7 Equals Consultants books balance as of Oct 31, 2011 89,155.33
XYZ Immigration Company
Bank Reconcilation, Oct 31, 2011
Client Account
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d. Detailed CA Reconciliation Statement—Quickbooks® Sample
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e. Detailed CA Reconciliation Statement—Officio Sample
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Appendix C
This template is provided by ICCRC for RCIC’s use and consideration when undertaking the monthly client account reconciliation (see Section 8.1 of the Client Account Regulation) and when submitting for the
compliance audit. The seven (7) components below are mandatory for the detailed client account reconciliation statement; however the formatting may vary based on the system of record keeping used.
Detailed Client Account Reconciliation Statement Template
[insert RCIC’s name or RCIC’s Company name]
[insert month being reported—e.g., May 31, 2013]
1 Bank Balance as of [insert last day of month prior to month being reported]
2 Less withdrawals cleared from the CA for the month of [insert month and year of month being reported]
Date Method of
transaction
Client code Amount
Bank fees (if applicable)
Total Withdrawals
3 Add deposits made to and cleared from the CA for the month of [insert month and year of month being reported]
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Date Method of
transaction Client code Amount
Bank fees (if applicable)
Total Deposits
4 Client Account Balance as of [insert month and year being reported]
5 Less withdrawals NOT yet cleared from the CA as of [insert final day of month being reported]
Date Method of transaction
Client code Amount
Total Outstanding Withdrawals
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6 Add deposits made to but
NOT yet cleared from the CA as of [insert final day of month being reported]
Date Method of transaction
Client code Amount
Total Outstanding Deposits
7 Book (Client Liability Account) Balance as of [insert final day of month being reported]
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Appendix D
This template is provided by ICCRC for RCIC’s use when undertaking the monthly client account reconciliation (see Section 8.1 of the Client Account Regulation) and when submitting for the compliance
audit.
Client List Template Money held on behalf of each client
As of __________________________ (insert month, day and year)
Client(s) (protect client confidentiality by using client
codes—do NOT use client names)
Amount held on behalf of client
Deposited in CA (√)
Bank fees (if applicable)
TOTAL: This number MUST EQUAL the Client Liability Account balance (component 7), as of the end of this particular month.
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Appendix E
Bookkeeping Processes Visual #1
PROCESS 1
PROCESS 2
PROCESS 3
CA Client Liability
Account
(credit)(debit)
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Appendix F
Bookkeeping Processes Visual #2
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Appendix G
ICCRC Bookkeeping Journal Entry Guide
Model 1
Record the Cash
Received
Create the Invoice
Withdraw Funds from
CA to Pay Invoice Debit ( ) General Account
Credit ( ) CA
Debit ( ) CA
Credit ( ) Client Liability Account
Debit ( ) Client Liability Account
Credit ( ) Income Account
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Appendix H
ICCRC Bookkeeping Journal Entry Guide
Model 2—(Service has not been performed)
ICCRC Bookkeeping Journal Entry Guide
Model 2—(Service has been performed)
To Record the Cash
Received Debit ( ) CA
Credit ( ) Client Liability Account
Create the Invoice
Withdraw Funds
from Client Account
to Pay Invoice
Debit ( ) Client Liability Account
Credit ( ) Income Account
Debit ( increase) General Account Credit ( ) CA
Cash Received—
deposit funds to
the General
Account
Debit ( ) General Account
Credit ( ) Sales Income
