Financial and Accounting Aspects of the Profession
The bailiff's finances
Understand the tariff structure: fees, disbursements, and VAT. Know the rules on the précompte (deduction) and the état de frais (statement of costs). The bailiff must keep proper accounts and issue invoices.
Accounting obligations
Know the basic accounting rules: double-entry bookkeeping, the chart of accounts, and the annual accounts. Understand the distinction between the professional account and the third-party account (compte de tiers).
Client funds
Client funds must be held separately. Understand the rules on the compte de tiers and the prohibition on mixing client and professional funds.
Traps
- Confusing fees with disbursements.
- Forgetting VAT treatment on bailiff services.
- Mixing client funds with professional funds.
- Overlooking the statement of costs (état de frais).
Rule of thumb
When a question involves money, classify it: fee, disbursement, or client fund. Then apply the tariff, the VAT rule, and the separate-account rule.
Worked example
A bailiff serves a writ and advances court costs. The invoice must distinguish the fee, the disbursement, and the VAT. Client funds received for a third party must be held in the separate account, not the professional account.