Client Account Course

Client Account Course

Workbook

Version: 2021-001
Last Modified: December 23, 2021

©2022 College of Immigration and Citizenship Consultants. No part of this publication may be used or
reproduced in any manner whatsoever without the prior written permission of the College, except in the
case of non-commercial use of brief quotations accompanied by proper citation.
 Client Account Course

Table of Contents

Introduction…………………………………………………………………………………………………...2

Module 1: Client Account Regulation and Client Account Fundamentals.………3

Module 2: Bookkeeping...……….………………………………………………………………….….9

Resources………………………………………………………………………………………………….…15

Appendices

Appendix A—Financial House Visual…………………………………………………………….16

Appendix B—Detailed CA Reconciliation Statement Samples……………………….17

Appendix C—Detailed Client Account Reconciliation Template…………………….22

Appendix D—Client List Template………………………………………………………………..25

Appendix E—Bookkeeping Process Visual …………………………………………………...26

Appendix F—Model 1 Bookkeeping Journal Entry Guide……………………………...27

Appendix G—Model 2 Bookkeeping Journal Entry Guide…………………………..28

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 Client Account Course

Introduction

Pop Quiz

Question Response
1) Every licensee is required to have a client account,
unless they have received an exemption. True or False

2) How many days does a licensee have, upon receipt a) 5 business days
of money that is to be held on behalf of a client, to b) 5 calendar days
deposit it into their CA? c) 14 business days
d) 14 calendar days
3) When is client money, which has been received by a) When the client completes the online
means of an electronic funds transfer, deemed to transaction.
be deposited? b) When the licensee is informed of the deposit
by the financial institution.
c) When the client is informed of the deposit.
d) When the financial institution physically
receives the funds.
4) Can a licensee 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 licensee and must remain in the CA, True or False
unless the client requested their own CA, in which
case all of the interest earned belongs to the client.

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 Client Account Course

Module 1: Client Account Regulation and 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 licensee at a

financial institution in which account the licensee 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 licensee goes over their CA

records/bookkeeping system and compares it to
their bank statement to ensure that there are no
unexplained discrepancies.

5) money e) _____ Is a bookkeeping term for the place where a

licensee 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

licensee at a financial institution in which account
the licensee holds funds received from or on behalf
of one or more clients and which is designated in the
licensee’s records as a client account.

8) invoice h) _____ Miscellaneous expenses incurred by a licensee

in the course of providing services to a client (ex.
government processing fees).

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 Client Account Course
Case Studies

Case 1:

Jasneet signed a Retainer Agreement with a client to represent them in their study permit application.
As per the payment schedule, the client deposited the next installment into Jasneet’s business
account on Tuesday, May 5, 20XX. Since Jasneet was quite busy, the installment was only transferred
from the business account into the Client Account on Friday, May 15, 20XX. A part of the installment
was for the support provided to the client in completing their application to the university (e.g.,
reviewing the client’s letter of intent).

Upon checking the Client Account, Jasneet noticed about $250 which did not belong to any of their
clients. After spending some time on their accounts, Jasneet realized that $250 of their personal funds
had been transferred into the Client Account by mistake.

In your small group, discuss and note your responses to the following questions:

1. What sections of the Client Account Regulation relate to this scenario?

2. Have any of those sections been complied with or violated?

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 Client Account Course

Case 2:

Ling is expecting to receive a cheque from Client 102 any day now. However, Ling’s rent is due
tomorrow, and the business account balance does not quite cover the entire amount. Ling decides to
withdraw the needed money from the CA with the intention of “balancing the books” as soon as the
cheque from Client 102 is received. However, the cheque never arrives as Client 102 is dissatisfied
with the result of their application and refuses to pay.

In the meantime, an expensive processing fee arises for Client 86, which Ling cannot cover through
the CA due to the extra money withdrawn to cover the rent. Ling decides not to file the application
right away, as there are not enough funds to do so, but tells Client 86 that the application has been
filed.

Later, Ling has enough money and files Client 86’s application, but it is sent back to Ling because
Client 86’s signature is missing in a key spot.

In your small group, discuss and note your responses to the following questions:

1. What sections of the Client Account Regulation relate to this scenario?

2. Have any of those sections been complied with or violated?

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 Client Account Course
Comparing the Client Account Deposit Models

Model 1: All Funds Deposited in Client Account

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 Client Account Course

Model 2: Unearned Funds Deposited in Client Account

In small groups, compare the models.

i. What is the main difference between the 2 models?

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 Client Account Course

ii. What are the pros and cons of each model?

Model 1: Model 2:
All Funds Deposited in CA Unearned Funds Deposited in CA

Pros

Cons

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 Client Account Course
Module 2: Bookkeeping

Client Account Reconciliation Activity

Consider the client account documents below (i.e., documents a, b and c) and complete the detailed
client account reconciliation statement and client list on pages 11-12.

a) Client Liability Account

Client Liability Account

ABC Bank
Account No. 778
Date Client Transaction Transaction Cheque/ Deposit/ Running
(month/dd/yyyy) Description Details Debit (Out) Credit (In) Balance

Apr-30-20XX ZM-100 Electronic funds unearned 400.00 2,100.00

transfer - from client fee
A/C 847591
May-01-20XX WL-103 Electronic funds unearned 1,200.00 3,300.00
transfer - from client fee
A/C 25871
May-08-20XX SJ-102 Electronic funds earned and 900.00 2,400.00
transfer - to A/C invoiced
777 (General client fee
Account)
May-11-20XX WL-103 Money order invoiced 150.00 2,250.00
#015420 police
purchased - to certificate
Australian fee
authorities
May-14-20XX MK-104 Cheque 506 - to unused and 50.00 2,200.00
MK-104 refunded
client fee
May-20-20XX WL-103 Electronic funds processing 125.00 2,075.00
transfer - to Gov't fee to Gov't
of Canada of Canada
May-21-20XX WL-103 Electronic funds earned and 500.00 1,575.00
transfer - to A/C invoiced
777 (General client fee
Account)
May-30-20XX MS-101 Cheque 456 - to invoiced 200.00 1,375.00
A/C 777 (General translation
Account) fee
May-31-20XX SM-105 Electronic funds unearned 300.00 1,675.00
transfer - from client fee
A/C 529786

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 Client Account Course
May-31-20XX SH-106 Cheque 170 - unearned 3,000.00 4,675.00
from SH-106 client fee

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b) CA Bank Statement (May 20XX)

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c) Client List (April 20XX)

Client List
Money held on behalf of each client

As of April 30, 20XX

Client(s) Amount held on behalf of Deposited in

(protect client confidentiality by using client each client CA ()
codes—do NOT use client names)
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 2,100.00 

Liability Account balance (component 7), as of the
end of this particular month.

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 Client Account Course

d) Detailed CA Reconciliation Statement (May 20XX)

John Smith – Client Account
Detailed CA Reconciliation Statement, May 31, 20XX
1 Bank Balance as of April 30, 20XX

2 Less withdrawals cleared the CA

for the month of May 20XX
Date Method of transaction Client code Amount

May-08 Electronic funds SJ-102 -900.00

transfer

Total Withdrawals

3 Add deposits made and cleared

the CA for the month of May 20XX
Date Method of transaction Client code Amount

Total Deposits

4 Client Account Balance as of May

31, 20XX

5 Less withdrawals NOT yet cleared

the CA as of May 31, 20XX
Date Method of transaction Client code Amount

Total Outstanding
Withdrawals

6 Add deposits made but NOT yet

cleared the CA as of May 31, 20XX
Date Method of transaction Client code Amount

Total Outstanding
Deposits

7 Book (Client Liability Account)

Balance as of May 31, 20XX

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e) Client List (May 20XX)

Client List
Money held on behalf of each client

As of May 31, 20XX

Client(s) Amount held on behalf of Deposited in

(protect client confidentiality by using client each client CA ()
codes—do NOT use client names)

TOTAL: This number MUST EQUAL the Client

Liability Account balance (component 7), as of the
end of this particular month.

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Resources

Books

Barker, Brooke C.W. (2009). CDN ED Basic Bookkeeping: An Office Simulation (6th ed.).
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 ed.). New York: Entrepreneur Press.

Epstein, Lita. (2005). Bookkeeping for Dummies (1st ed.). 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 ed.). 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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 Client Account Course

Appendix A
Financial House Visual

Financial Institution
(e.g., TD, RBC, Desjardins)

Client Account General Account

(e.g., account #7502) (e.g., account #6002)
Receive a bank-issued Receive a bank-issued
statement statement

Company Records
(Your personal records/books on your accounts)

Client Liability Account Income Account

(e.g., account #7502) (e.g., account #6002)
Your own records Your own records

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 Client Account Course

Appendix B
Detailed CA Reconciliation Statement Samples

a. CA Reconciliation Statement Components

XY Business
Bank Reconciliation, Oct 31, 20XX
Client Account

1 CA bank balance as of Sept 30, 20XX 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, 20XX 101,555.33

5 Less withdrawals NOT cleared the CA as of Oct 31, 20XX -17,400.00

6 Add deposits made but NOT yet cleared the CA as of Oct 31, 20XX 5,000.00

7 Equals consultant's Client Liability Account balance as of Oct 31, 20XX 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

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 Client Account Course

d. Detailed CA Reconciliation Statement—Quickbooks® Sample

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 Client Account Course

e. Detailed CA Reconciliation Statement—Officio Sample

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 Client Account Course
Appendix C

This template is provided by the College for RCICs’ use and consideration when undertaking the monthly
client account reconciliation (see Section 9.1 of the Client Account Regulation). The 7 components below are
mandatory for the detailed client account reconciliation statement; however, the formatting may vary based
on the system of recordkeeping used.

Detailed Client Account Reconciliation Statement Template

[insert RCIC’s name or RCIC’s Company name]

[insert month being reported—e.g., May 31, 20XX]

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 Client code Amount
transaction

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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 Client Account Course
Date Method of Client code Amount
transaction

Bank fees (if applicable)

Total Deposits

4 Client Account Balance as of

[insert last day of month
being reported]

5 Less withdrawals NOT yet

cleared from the CA as of
[insert last day of month
being reported]
Date Method of Client code Amount
transaction

Total Outstanding
Withdrawals

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 Client Account Course
6 Add deposits made to but
NOT yet cleared from the
CA as of [insert last day of
month being reported]
Date Method of Client code Amount
transaction

Total Outstanding
Deposits

7 Book (Client Liability

Account) Balance as of
[insert last day of month
being reported]

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 Client Account Course
Appendix D

This template is provided by the College for RCICs’ use when undertaking the monthly client account
reconciliation (see Section 9.1 of the Client Account Regulation).

Client List Template

Money held on behalf of each client

As of __________________________ (insert month, day and year)

Client(s) Amount held on behalf of Deposited

(protect client confidentiality by using client each client in CA (√)
codes—do NOT use client names)


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 Process Visual

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Appendix F
College’s Bookkeeping Journal Entry Guide

Model 1

Record the Money Debit ( ) CA

Received Credit ( ) Client Liability
Account

Create the Invoice Debit ( ) Client Liability

Account
Credit ( ) Income Account

Withdraw Funds from

Debit ( ) General Account
CA to Pay Invoice Credit ( ) CA

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 Client Account Course

Appendix G
College’s Bookkeeping Journal Entry Guide

Model 2 — (Service has not been performed)

Record the Money

Debit ( ) CA
Received
Credit ( ) Client Liability Account

Create the Invoice Debit ( ) Client Liability Account

Credit ( ) Income Account

Withdraw Funds
Debit ( ) General Account
from Client Account
to Pay Invoice Credit ( ) CA

College’s Bookkeeping Journal Entry Guide

Model 2 — (Service has been performed)

Money
Received—
deposit funds to Debit ( ) General Account

the general Credit ( ) Sales Income

account

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