Nexal Legal
SRA Accounts Rules Workflows · Client Ledger · Audit Records

The Operating
System for
Legal Finance.

Client ledger management, reconciliation and compliance workflows designed for UK law firms that require precision, control and clear financial accountability.

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£39 per month2 users includedOnboarding included
Nexal Legal / reconciliation
EXAMPLE
⬜Overview
▦Client Ledger
⚖Cashbook
◎Reconcile
◈Audit Trail
⊡Controls
⊞Exports
Periods
Feb 2025⊠
Mar 2025⊠
Apr 2025○
Three-Way Reconciliation
April 2025 — Period open
OPEN
Balance Comparison
Client Ledger Balance
£53,275.18✓
Client Cashbook Balance
£53,275.18✓
Client Bank Balance
£53,275.18✓
Variance
£0.00BALANCED
CodeMatterBalanceStatus
CLT-0041
Henderson v. Clarke
Commercial Property
£8,450.00
✓
CLT-0089
Morrison Estate Trust
Probate & Succession
£17,920.50
✓
CLT-0112
Blackwood Corp Acq.
Corporate M&A
£35,275.18
✓
CLT-0134
Fairweather Holdings
Commercial Lease
£1,250.00
⊗
⊗ CLT-0134 has outstanding balance — closing restrictedLock period →
Client LedgerMatter-level management
Three-WayReconciliation
SRA AccountsRules workflows
Period Locking & ControlsReconciliation Version HistoryVariance Detection & AlertsAccountant Reporting PacksDual-Authorisation PaymentsClient & Office CashbooksRole-Based Access PermissionsPeriod Locking & ControlsReconciliation Version HistoryVariance Detection & AlertsAccountant Reporting PacksDual-Authorisation PaymentsClient & Office CashbooksRole-Based Access Permissions
Platform Capabilities

Platform capabilities for
regulated client accounts.

From matter-level ledger posting to reconciliation and compliance reporting — the core workflows UK law firms need, with controls embedded in everyday operations.

Matter-Level Client Ledger

Complete double-entry ledger tracking at individual matter level. Real-time balance validation, automatic client code generation, and full transaction accountability on every posting.

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SRA Accounts Rules Workflows

Posting, reconciliation, matter closing and fee transfer workflows designed around the operational requirements of the SRA Accounts Rules — purpose-built for regulated legal accounting.

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Three-Way Reconciliation

Compare client ledger, cashbook and client bank balances in one workflow. Variances are identified to matter level, with period locking, reconciliation version history and audit transparency.

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Comprehensive Audit Records

Append-only logging of transactions, reversals, period locks, logins and exports. Original entries remain on record; corrections are made through controlled reversals. Read-only inspection mode supports review and audit access.

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Client & Office Cashbooks

Separate cashbooks for client and office accounts with enforced segregation. Rule-based validation on every receipt, payment and journal, with real-time ledger sync.

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Reports & Exports

PDF, CSV and Excel export across account views. Structured compliance reporting packs for accountant and COFA review — see Reporting & Exports for the full capability set.

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Reconciliation Intelligence

Three-way reconciliation
with full audit transparency.

Nexal Legal brings client ledger, cashbook and client bank balances into a single three-way reconciliation workflow. Variances are surfaced at matter level, with reconciliation version history, period locking and a complete audit trail on every action.

Variance Detection1 variance
April 2025 — ledger and cashbook compared at matter level
MatterLedgerCashbookVarianceStatus
Henderson v. Clarke£8,450.00£8,450.00£0.00
✓
Morrison Estate Trust£17,920.50£17,920.50£0.00
✓
Blackwood Corp Acq.£35,275.18£35,275.18£0.00
✓
Fairweather Holdings£1,295.00£1,250.00£45.00
⚠
Open variance: £45.00 — period cannot be locked until resolvedReview →
Reconciliation Health✓ All balanced
0
Matters balanced0 / 247
Periods locked9 of 10
Open variances0
Compliance alerts0
Client Ledger
£35,000.00
Active balance
Client Bank
£35,000.00
Active balance
◎
Monthly reconciliation locking
Lock a reconciled period to prevent backdated entries. Any attempt to post to a locked period is automatically rejected.
⚠
Variance enforcement alerts
Automated alerts notify the nominated COFA when a variance is detected. The period cannot be locked until it is resolved.
◈
Reconciliation version history
Every reconciliation run is versioned and retained. Review prior periods, compare changes, and export records for COFA sign-off.
≡
Export-ready reconciliation records
Reconciled periods produce structured records for COFA review and accountant sign-off — detailed in Reporting & Exports.
Operational Controls

Operational controls for
client account management.

Period locking, transaction reversals, balance enforcement, and forensic audit access — the operational controls that regulated client account management demands.

Reconciliation Period Locking
Locking a period secures it against further changes. Transactions cannot be backdated into a locked period.
⊠
January 2025
Locked 15 Jan 2025 · S. Caldwell
LOCKED
⊠
February 2025
Locked 12 Feb 2025 · S. Caldwell
LOCKED
⊠
March 2025
Locked 08 Mar 2025 · S. Caldwell
LOCKED
○
April 2025
Reconciliation pending
OPEN
⊡Backdated posting to a locked period is automatically blocked at the transaction layer. Admin access required to lock or unlock a period.
Forensic Audit Mode
READ-ONLY
No edits, deletions or modifications are possible in this mode. 1,247 recorded events today.
14:22:08J.WillisReceipt postedTXN-5201
14:18:33S.CaldwellPeriod lockedMAR-2025
13:41:02J.WillisTransaction reversedREV-4821
09:34:00SystemNightly reconciliationREC-0414
◈Tamper-evident audit chain with comprehensive event history
⊗
Balance Enforcement
Matter closing restrictions
Fairweather Holdings
CLT-0134 · Commercial Lease
RESTRICTED
Client account balance£1,250.00
⊗Matter cannot be closed until balance reaches £0.00.
Nexal Legal enforces zero-balance sign-off before any matter can be archived. Fee earners are guided through transfer or return workflows.
Transaction Reversals
Full audit chain preserved
TXN-4821REVERSED
Receipt — Blackwood Corp Acquisition
14 Apr 2025 · 11:04Posted by: M.Chen£5,000.00
REV-4821REVERSAL
Reversal — posted to incorrect matter
14 Apr 2025 · 14:22By: J.Willis-£5,000.00
Both entries remain permanently visible in the audit trail. Reversal reason and authorising user are recorded and cannot be altered.
Access Control
Two operational roles. Administrative controls managed through role-based permissions.
Admin
Full access
✓Client Ledger
✓Cashbook
✓Reconciliation
✓Reports & Exports
✓Office Account
✓User Management
✓Security
✓Audit Log
✓System Backups
✓System Health Monitoring
Staff
Operational access
✓Client Ledger
✓Cashbook
✓Reconciliation
✓Reports & Exports
✓Office Account Transfers

Administrators can create additional users, assign staff or admin access levels, and manage operational permissions centrally.

Administrative controls are restricted to authorised users only. All operational activity remains fully logged within the audit trail.

Operationally aligned with SRA Accounts Rules workflows

Built Around SRA
Accounts Rules Workflows.

Controls, restrictions and workflows in Nexal Legal are designed to support the operational requirements of the SRA Accounts Rules. The platform is purpose-built for regulated client money management — not general business accounting.

Nexal Legal is not SRA-approved or SRA-endorsed. Firms remain responsible for their own compliance. The platform is independently designed to support SRA Accounts Rules workflows.

Rule 2

Protection of Client Money

Client funds protected at all times

Software Control
Transaction Attempt
MatterHenderson v. Clarke (CLT-0041)
Requested£150,000.00
Available£124,500.00
⊗BLOCKED — negative client balance not permitted
Negative client balances blocked at transaction layer
Uncleared funds restricted until cleared status confirmed
Balance enforcement controls on every withdrawal attempt
Improper withdrawal attempts logged and rejected
Rule 3

Separation of Client & Office Money

Strict account segregation enforced

Software Control
CLIENT ACCOUNT
£4,847,293
Regulated client funds
⊠ Segregated
OFFICE ACCOUNT
£892,100
Office operating funds
⊠ Segregated
No cross-account transfers without controlled audit trail
Dedicated client and office ledgers — independent balance controls
Segregated reconciliation workflows for each account type
Cross-account transfers only through controlled audit trail workflow
Office funds cannot be posted to client account and vice versa
Rule 8

Accounting Records

Comprehensive, attributed, chronological

Software Control
#5201ReceiptHenderson v. C.+£5,00014:22
#5202TransferMorrison Estate-£1,20014:35
#5203Fee xferBlackwood Corp-£8,20015:01
◈Append-only · no edits · no deletions permitted
Append-only transaction history — no edits, no deletions
Full user attribution on every posting, reversal and action
Chronological sequence integrity enforced at database layer
Permanent audit visibility — all records retained indefinitely
Rule 8.3

Three-Way Reconciliation

Ledger, cashbook and client bank aligned

Software Control
Client Ledger
£4,847,293.00✓
Client Cashbook
£4,847,293.00✓
Client Bank Balance
£4,847,293.00✓
Variance
£0.00BALANCED
Period: Apr 2025○ OPEN — lock when balanced
Client ledger, cashbook and client bank balances compared in one workflow
Variance detection identifies discrepancies to matter level
Reconciliation version history retained for every completed period
Periods lockable after completion — no backdated entries
Rule 8.6

Inspection-Ready Reporting

Every document, on demand

Software Control
Reconciliation Statement · Apr 2025
PDF
CSV
Excel
✓Three-way comparison
✓Transaction listing
✓Audit trail
✓Variance analysis
PDF, CSV and Excel export across all account views
Chronological reporting with date and matter filtering
Structured compliance reporting pack to support SRA inspection preparation
Reconciliation statements with sign-off fields included
Operational Safeguards

System-level enforcement, not policy documents.

These safeguards are embedded in the transaction layer of everyday operations. Role-based access is configured in Operational Controls.

Reversal & read-only
Controlled corrections & inspection
Posting errors are corrected through controlled reversals only — original entries remain on record. Authorised users can enter read-only forensic mode to inspect the complete audit trail without making changes.
Zero-balance required
Closed matter restrictions
A matter cannot be closed while a client account balance remains. The system enforces zero-balance sign-off before archival.
AES-256 · 90-day
Backup, encryption & recovery
AES-256 encrypted nightly backups with 90-day cloud retention, USB offline workflows, and point-in-time restore. All recovery actions are permanently logged. Full detail in Security & Data Integrity.
Compliance Operations

Compliance is not a feature. It is the product.

Built from the SRA Accounts Rules outwards. Controls, alerts and reporting are designed to support your COFA's day-to-day work and help your firm prepare confidently for SRA inspection and accountant review.

RuleRule 5.1
Interest Accounting
Support for recording and tracking client account interest adjustments with full audit visibility and transaction attribution on every posting.
Supported
RuleRule 12
Annual Accountant's Report
Generate structured reconciliation, audit and financial reporting packs to support accountant and compliance review workflows. Export in PDF, CSV or Excel.
Export-ready
Client Money ProtectedSupported
Account SegregationSystem-controlled
Audit Trail IntegrityProtected
Reconciliation EngineActive
Designed to support regulated client account operations
Reporting & Exports

Reporting built for
legal finance teams.

Generate date-filtered, matter-filtered and user-filtered reports across client and office accounts. Export as PDF, CSV or Excel. Produce structured compliance reporting packs for your accountant and COFA.

Report Builder
Configure filters, format, and generate in one step.
Report Type
Reconciliation Statement
From
01/04/2025
To
30/04/2025
Matter
All matters
Account
Client account
Output Format
Compliance Pack Generator
All SRA accounts documentation in a single export.
✓
Client Account Reconciliation Statements
All locked periods
✓
Three-Way Balance Comparisons
All locked periods
✓
Client Ledger Summary (all matters)
Full year
✓
Office Account Summary
Full year
✓
Cashbook Transaction Listing
Full year
✓
Variance Analysis Report
All periods
✓
Audit Trail Export
Full year
✓
User Activity Log
Full year
Export HistoryAll exports are logged permanently
PDF
reconciliation-mar-2025.pdf
2.4 MB · S. Caldwell
08 Mar · 09:41
CSV
audit-trail-q1-2025.csv
847 rows · Admin
01 Apr · 14:00
PDF
compliance-pack-2025.pdf
15.7 MB · S. Caldwell
01 Apr · 14:12
XLSX
cashbook-apr-2025.xlsx
124 rows · M. Chen
14 Apr · 10:22
PDF
ledger-summary-q1.pdf
3.1 MB · S. Caldwell
14 Apr · 11:05
PDF reports
Formatted, cover-paged, signature-ready output for accountants and regulators.
CSV & Excel exports
Raw data exports for custom analysis, with every column labelled and typed correctly.
Date & matter filtering
Filter any report by date range, individual matter, account type, or posting user.
Reconciliation print workflows
Dedicated reconciliation statement printout with three-way comparison and sign-off fields.
Security & Data Integrity

Encryption, backups
and recovery controls.

AES-256 encrypted nightly backups to the cloud with USB offline workflows for air-gapped retention. Recovery keys, system health monitoring, point-in-time restore, and permanent logging of all backup and recovery actions — protecting sensitive financial records in transit and at rest.

Backup Status
Nightly automated backups — AES-256 encrypted
AES-256 Encryption
All backups encrypted with a unique backup key before storage
☁
Today 02:00·Cloud (OneDrive)
15.7 MB · AES-256 ✓
✓
☁
Yesterday 02:00·Cloud (OneDrive)
15.5 MB · AES-256 ✓
✓
☁
12 Apr 02:01·Cloud (OneDrive)
15.4 MB · AES-256 ✓
✓
☁
11 Apr 02:00·Cloud (OneDrive)
15.2 MB · AES-256 ✓
✓
☁
10 Apr 02:00·Cloud (OneDrive)
15.2 MB · AES-256 ✓
✓
⊞
07 Apr 11:34·USB Offline
15.0 MB · AES-256 ✓
✓
Retention: 90-day rollingNext backup: Tomorrow 02:00
System Health
Operational
5 / 6
Checks passing (5 of 6)
Last checkToday 06:00
DB versionv14.3 stable
Active sessions4 users
Database integrityPASS
Backup verificationPASS
Transaction log syncPASS
Audit trail continuityPASS
User session securityPASS
Storage capacity74% used
Recovery & Backup Workflows
☁
Nightly Cloud Backup
Automated 02:00 AM backup to OneDrive. Encrypted before upload. No manual action required.
02:00 daily · AES-256
⊞
USB Offline Backup
Admin-triggered offline backup to USB storage for air-gapped retention requirements.
Admin-triggered · Encrypted
↺
Backup Restore
Point-in-time restore from any backup within the retention window. Admin authentication required.
Point-in-time · Admin only
Recovery Key System
Admin-controlled emergency access
Primary recovery key
Admin controlled
Last key rotation
45 days ago✓
Key shares required
2 of 3 threshold✓
Emergency access log
0 uses — all-time✓
⊡Emergency access requires admin authentication plus recovery key. All access attempts are logged permanently.
AES-256 at rest
Every backup encrypted before it leaves the system. The encryption key never touches the backup destination.
90-day retention
Rolling 90-day backup retention. Restore to any point within the window — down to the daily snapshot.
USB offline workflow
Admin-triggered export to USB for offline archival. Meets requirements for air-gapped or multi-site operations.
Integrity verification
Each backup is verified after creation. A corrupted or incomplete backup is flagged before it enters the retention window.
Data Migration

Structured financial
data migration.

Our migration specialists plan and manage your transition from legacy legal software, spreadsheets, or archived exports — covering client ledger records, cashbook history, office account data, reconciliation records, and historical reporting through to controlled go-live.

Migration in progress
01
Legacy Data Review
Existing records assessed for structure, completeness, and migration readiness across all accounts.
02
Ledger & Cashbook Mapping
Client codes, matter references, and account structures mapped to Nexal Legal workflows.
03
Structured Record Import
Validated data imported with full traceability. Accounting integrity maintained throughout the transfer.
04
Controlled Go-Live
Operational verification completed before deployment. Onboarding support provided throughout.
Nexal Legal — Migration complete
Records verified · Workflows configured · Audit records initialised
What can be migrated

Data migration scope varies by firm. The following record types can typically be reviewed, mapped, and imported into Nexal Legal workflows.

▣
Client Ledger Records
Historical client ledger entries reviewed and restructured into matter-level Nexal Legal accounting workflows.
◫
Office Account Data
Office account transaction history mapped and imported with separation controls intact.
◎
Cashbook History
Client and office cashbook records transferred with chronological integrity and transaction attribution.
⊡
Reconciliation Records
Where available, prior reconciliation history is retained to support continuity and audit traceability.
◈
Reporting & Exports
Historical reporting data preserved and available for export throughout and after the migration process.
◉
Migration Verification
Record counts, balances, and data completeness verified before the system is signed off as live.
Migration and onboarding, managed end to end.

Scope, timeline, and approach vary depending on the volume, format, and condition of your existing records. Contact us to discuss what is feasible for your firm and how the transition would be structured.

Discuss Your Migration
Pricing

Simple, transparent
operational pricing.

All features included on every plan · 12 month contract · No locked tiers

Essential

Ideal for small firms & sole practitioners

£39/ month
Up to 2 users
12 month contract
All features included
  • Client ledger management
  • Client & office cashbooks
  • Three-way reconciliation
  • Reconciliation version history
  • Comprehensive audit records
  • PDF / CSV / Excel exports
  • Reconciliation locking
  • Operational reporting
  • + 6 more features
Get Started

No credit card required

Most Popular

Professional

Perfect for growing practices

£79/ month
Up to 5 users
12 month contract
All features included
  • Client ledger management
  • Client & office cashbooks
  • Three-way reconciliation
  • Reconciliation version history
  • Comprehensive audit records
  • PDF / CSV / Excel exports
  • Reconciliation locking
  • Operational reporting
  • + 6 more features
Get Started

No credit card required

Practice Plus

Designed for larger firms

£149/ month
Up to 10 users
12 month contract
All features included
  • Client ledger management
  • Client & office cashbooks
  • Three-way reconciliation
  • Reconciliation version history
  • Comprehensive audit records
  • PDF / CSV / Excel exports
  • Reconciliation locking
  • Operational reporting
  • + 6 more features
Get Started

No credit card required

All plans include every platform feature. User limits are the only difference between plans.
Need more users? Contact us to discuss a custom arrangement.

Enquire Now

Questions about product suitability, migration, compliance workflows, onboarding, training, pricing, or a demonstration? Get in touch.

A member of the Nexal Legal team will respond as soon as possible.

Testimonials

What Legal Professionals
Are Saying

Feedback from firms and professionals using Nexal Legal to manage legal accounting, reconciliations and compliance workflows.

Featured
“Moving away from paper-based ledgers has completely changed how we manage our client accounts. Transactions are quicker to record, balances are easier to monitor and month-end reconciliation is significantly more straightforward. The system gives us much better visibility over our accounts while remaining simple and practical to use day to day.”
S
Serene Solicitors Limited

1 of 3

Request a walkthrough
of Nexal Legal.

Speak with our team about client account workflows, onboarding, and implementation for your firm. Plans start at £39 per month with 2 users included.

Request a Demo
hello@nexallegal.co.uk07849 228 077