With another busy year nearly behind us, many firms are turning their attention to their finances and planning ahead. With the right approach, 2026 can be a year of clarity, control, and growth, rather than stress over cashflow or reconciliations. 

Understanding where your money comes from and where it goes is the foundation of financial health. At year-end, it’s essential to review balances, invoices, and outstanding receivables so you have a complete picture of your firm’s finances. 

Imagine a mid-sized law firm that wraps up December with a few large invoices still unpaid. Without visibility, they might assume they have cash available for planned investments in staff training or technology upgrades, but those funds won’t arrive until January. By reviewing the year-end balances and aged debt, the firm can spot potential shortfalls, plan accordingly, and avoid unnecessary stress in the new year. 

Seasonal fluctuations are another important factor. Many law firms see slower payments over the festive period or early January. Knowing this in advance allows you to plan for temporary shortfalls, adjust costs, or delay discretionary spending without disrupting operations. 

Tip: Regularly forecast cashflow over the next 3–6 months. Planning around predictable payment delays or seasonal slowdowns ensures no surprises at the start of the year. 

Not all areas of a law firm contribute equally to profitability. Taking the time to analyse which departments, practice areas, or individual matters performed best in 2025 can uncover valuable insights and highlight areas for improvement. 

A firm may see that the corporate team generates higher revenue per matter, while the conveyancing team handles larger volumes but with slower payment cycles. On closer analysis, they may see that certain conveyancing processes are slowing down revenue recognition or increasing overheads. With this knowledge, the firm can make targeted changes, streamlining workflows, adjusting staffing levels, or investing in training to improve overall efficiency and profitability. 

Similarly, reviewing matters individually can reveal where time is being spent versus revenue earned. Perhaps smaller matters are consuming disproportionate staff hours, or some types of cases consistently underperform due to delayed billing or longer payment cycles. These insights allow firms to make informed decisions on pricing, process improvements, or resource allocation. 

Tip: Use your data to make smarter allocation decisions in 2026. Whether that’s reallocating staff to high-performing areas, adjusting marketing to target more profitable case types, or investing in technology that speeds up workflows, a clear understanding of past performance ensures you start the new year with both efficiency and profitability in mind. 

Efficient processes save time, reduce errors, and make operations smoother. Reviewing reconciliations, billing, and reporting processes at year-end ensures everything is accurate and consistent. 

Some firms find that month-end reconciliations take longer than expected due to manually tracking receipts across multiple accounts. Standardised workflows and automation tools, like the Cashroom Portal, reduce errors, save staff hours, and give partners a clear view of finances. Even simple adjustments, such as consistent invoice templates or clear approval steps for expenses, can prevent January headaches and ensure a smoother start to the year. At Cashroom we reconcile bank accounts daily – no exceptions! 

Tip: Conduct a mini “process audit” before the new year. Reviewing last year’s billing cycle might reveal recurring delays caused by unclear approval paths. Making small tweaks, like assigning responsibility for approvals or introducing automated reminders, can significantly speed up operations in 2026. 

Ambitious targets are important, but flexibility is equally essential. Unexpected costs, client delays, or market shifts can impact even the best-laid plans. Planning for growth while leaving room for adaptability ensures the firm can respond quickly without compromising cashflow. 

Careful cashflow projections help determine whether planned hires, investments, or other expenditures are feasible in early 2026. Scenario planning, such as modelling delays in key client payments or accelerated growth in certain practice areas allows proactive adjustments in staffing, marketing, or investments, keeping operations stable. 

Tip: Strong planning is not predicting the future, it means preparing for it. Combining realistic targets, data-backed decisions, and contingency plans ensures your firm starts the new year agile, resilient, and ready to succeed. 

Billing practices directly impact cashflow, client satisfaction, and revenue collection. Reviewing how quickly invoices are issued, how clear they are, and whether clients are set up for convenient payment methods can make a big difference. 

Firms may discover delays caused by complex billing approvals, unclear descriptions, or manual processes. Simplifying invoice layouts, implementing electronic invoicing, or offering multiple payment options can reduce delays and improve collections. Tracking overdue invoices regularly ensures issues are addressed promptly rather than accumulating over time. Our credit control service actively monitors overdue invoices, helping firms chase outstanding payments efficiently and maintain a healthy cashflow.  

Tip: Optimising billing isn’t just about speed; it’s about consistency and clarity. A streamlined approach improves client experience while keeping cashflow predictable for the firm. 

Start the 2026 with Confidence

Strong financial foundations lead to stronger firms. To help law firms like yours, we’ve created a practical guide: 10 Simple Ways to Manage Your Law Firm’s Cash Flow. It’s packed with actionable tips to help you start 2026 with control and confidence. 

This article is inspired by the recent Law Firm Ambition with Andy Poole, and speakers Jane Pritchard, Paul Sams and David Baskerville. 

Legal technology continues to grow. Law firms are no longer looking for all-in-one systems, they may have been using 10 years ago but are now needing tech that genuinely supports their people, processes, and clients. Law Firm Ambition’s recent “Law Firm of Tomorrow: A strategic overview of legal technology” webinar explored how law firms can adopt technology strategically to achieve their objectives. Here’s what we learned. 

Legal Tech Today: Adoption and Challenges 

AI is now a key part of legal operations with over 90% of law firms using it in some form and many planning to increase adoption in the near future. Yet, despite this widespread adoption, legal tech is in a state of flux.  

The old model of a single all in one platform that handled case management, finance and document management. Firms are increasingly looking for targeted, specialist solutions that address specific challenges, rather than forcing all processes into a single system. While this allows for more tailored and efficient workflows, it also introduces new challenges: connecting different platforms can be tricky and without careful planning, data can become fragmented across systems. 

At the same time, vendors frequently overpromise. Systems may be marketed as innovative or transformative but in reality, they might simply be legacy technology with a refreshed interface or minor upgrades. Services can be inconsistent, with support levels varying dramatically between providers. Consolidation in the PMS market has further reduced choice, leaving firms with fewer vendors but an increasing array of add-ons and optional modules to navigate.  

What’s Driving Law Firms to Invest in Technology? 

When 200 webinar attendees were asked “What’s the real driver behind your interest in legal technology right now?” the responses highlighted a mix of operational pressures and forward-looking ambitions.  

Nearly half of respondents said their current systems are creaking and holding them back, pointing to the very real frustration that outdated, or poorly integrated technology can create. More than a quarter cited client expectations for a slick, digital experience, reflecting how the pandemic has permanently shifted how clients interact with their law firms, from document access to communication and service delivery. A smaller, but still significant, portion of firms, 10%, felt pressure to keep up with faster competitors, acknowledging that speed and responsiveness are now key differentiators in the legal market. 

These responses paint a clear picture: law firms are not chasing technology for its own sake. They are looking for tools that solve practical challenges, enhance client experience, improve efficiency, and position them competitively for the years ahead. 

Start with the Problem, Not the Product 

One of the most important messages from the webinar was clear: don’t buy shiny software without first defining the problem you’re trying to solve. It’s all too easy to be seduced by the latest AI tool or the newest all-in-one platform, but technology alone cannot fix underlying business challenges. Start by identifying the specific issue your firm wants to address. Are you aiming to improve efficiency, strengthen compliance, enhance the client experience, or gain better insights from your data? Understanding this upfront ensures that any investment is purposeful rather than reactive. 

Equally important is resisting the temptation to replace existing systems with like-for-like alternatives simply because they’re familiar. Just upgrading a familiar tool doesn’t guarantee better outcomes, it may simply replicate the same inefficiencies in a new package. Instead, take a step back and ask what success really looks like for your firm, then explore the solutions that help you achieve it. 

When evaluating the different options available, go beyond marketing claims. Ask detailed, practical questions about what their solution can and cannot deliver. Understand the limits of integration, the level of automation, reporting capabilities, and the true return on investment. Request proof of concept and documented commitments rather than relying on verbal assurances, which often fall short six months down the line. 

A common pitfall highlighted in the session is adopting technology without properly embedding it into your firm’s people and processes. Even the most advanced tool will fail to deliver real value if staff aren’t trained, workflows aren’t updated, and responsibilities aren’t clearly defined. Successful implementation requires alignment across three key areas: the technology itself, the processes it supports, and the people using it. When all three are connected, your investment translates into tangible benefits, faster operations, improved accuracy, and a better experience for both clients and lawyers. 

Integration: The Key to Success 

Modern law firms rarely rely on a single platform to run their operations. Instead, they operate across multiple systems (case management, document management, finance, time recording, client portals), and increasingly AI-powered tools. In this situation, integration becomes critical. It’s not just about connecting systems; it’s about ensuring that data flows smoothly, processes are seamless, and staff can work efficiently without jumping between incompatible platforms. 

Integration can take several forms, each with its own benefits and limitations. 

APIs are perhaps the most familiar approach. They expose selected functionality from one system to another and can trigger actions across platforms. For example, updating a client matter in the case management system might automatically update corresponding records in billing or document management. APIs can create powerful workflows, but it’s important to understand that the data exchanged is limited to what the vendor chooses to expose. This means some insights or functionality might not transfer as you expect. 

Data imports are a simpler, controlled method. They allow bulk uploads or regular updates, such as payroll or client records, from one system to another. While highly reliable for specific tasks, data imports don’t provide real-time integration and aren’t sufficient to replicate more complex workflows. 

Direct access was historically used to create deeper integration, allowing firms to make system-level changes that automated processes and enabled custom reporting. However, this approach is increasingly rare because it can be fragile and challenging to maintain when software is updated. While it can unlock powerful efficiencies, it requires careful management and technical expertise. 

It is important to remember that integration is more than a technical connection. It’s the backbone of efficiency. Without it, even the most sophisticated legal tech tools can become isolated, creating duplicated work, errors, and frustration. Law firms must understand not just whether their systems can talk to each other, but how well that integration supports their workflows, enables accurate data insights, and ultimately contributes to client service and operational efficiency. 

Common Mistakes in Implementing Technology 

Webinar attendees were asked: “Which of these causes the most damage to tech projects in real life?” The responses highlight the real-world challenges firms face when implementing new systems: 

43% – Falling for vendors overpromising and underdelivering 

Many law firms are drawn to flashy demos, marketing claims, and the promise of revolutionary efficiency from PMS’s. Yet without verifying these claims against the firm’s actual workflows and requirements, disappointment can follow. Features may not work as advertised or require significant manual effort to replicate the promised benefits. 

17% – Integration works initially but then fails 

Even a PMS that appears seamless during testing can encounter issues once in production. Updates, conflicting platforms, or incomplete API functionality can disrupt workflows, leaving teams frustrated and processes fragmented. 

15% – Buying software without defining the problem 

Without a clear understanding of the pain points or desired outcomes, firms risk investing in tools that don’t solve the core issues. Even high-tech solutions fail if they aren’t aligned to specific operational or strategic needs. 

15% – Partners resisting change 

Organisational buy-in is critical. Even the best technology can flounder if key stakeholders are reluctant to adapt. Resistance often stems from comfort with legacy systems, scepticism about ROI, or unclear communication of benefits. 

7% – No one owning the project 

Without a dedicated project owner, initiatives lack focus. Decisions can stall, training can be inconsistent, and accountability disappears, undermining adoption and long-term success. 

Other common pitfalls surfaced during the discussion: 

• Setting expectations too high: Assuming a system will solve all problems instantly can lead to disappointment and lost confidence. 

• Underestimating project scale: Large PMS or document management projects often take months, sometimes a year, to fully implement. Firms must plan resources and timelines realistically. 

• Ignoring data migration challenges: Legacy data must be carefully mapped, cleansed, and imported. Failing to do so risks errors, incomplete records, or lost information. 

• Neglecting security and exit strategies: Due diligence on new PMS vendor security, data access, and contractual exit clauses is essential. Without it, firms face the risk of breaches, data loss, or prohibitive costs if they need to change platforms. 

The message is clear: successful tech projects depend on clarity, preparation, and active management. Firms that take the time to define the problem, plan resources, and ensure buy-in are far more likely to see tangible returns from their investments. 

What Technology Delivers Value in Law Firms? 

Another poll asked: “If you had to justify your current legal tech stack tomorrow, which area would you defend first?” 

Matter and case management – 47%
Nearly half of respondents identified matter or case management as the backbone of their operations. These systems are central to daily workflows, helping track cases, deadlines, communications, and key documents. Without a robust PMS in this area, firms risk inefficiency, missed deadlines, and compliance issues. It’s no surprise that this is the first system lawyers would defend, everything else depends on it. 

Finance and time recording – 38%
The second-highest area was finance and time recording. These systems directly impact a firm’s revenue visibility, ensuring accurate billing, timely invoicing, and effective tracking of client payments. Efficient finance tools also reduce errors and free up lawyers and support staff to focus on client work rather than administrative tasks. 

Document management and templates – 23%
Document management remains critical for operational efficiency and compliance. Templates standardise work, reduce mistakes, and streamline communications internally and with clients. For firms juggling high volumes of documents, these tools are essential to maintain quality and consistency across all matters. 

Client-facing tools – 9%
While client-facing tools ranked lower, they play a strategic role in improving the client experience. Portals, automated updates, and online communications may not be used every day internally, but they help firms differentiate themselves, particularly as clients increasingly expect digital, frictionless interactions. 

AI tools – 3%
AI still represents a small footprint in most firms’ tech stacks, but the impact can be significant. From automating research and document review to providing insights on case trends, AI can improve efficiency and decision-making. Yet this poll highlights that AI is still largely an augmenting tool, not the core of daily operations. 

The broader takeaway is that law firms’ technology decisions should be strategic rather than reactive. While AI and new client-facing tools are exciting, the systems that sustain daily operations (case management, finance, and document workflows), remain the real pillars of value. Firms should prioritise investments that align with their operational goals, ensuring technology supports people and processes rather than simply following trends. 

People, Processes, and Change Management 

Even the most advanced legal technology will fail to deliver value if staff don’t understand it or adopt it effectively. Installing the software is just the first step; true value comes from embedding it into the daily workflows of your staff. Without buy-in, even a powerful system can sit unused or be used incorrectly, undermining the investment and the intended outcomes. 

Key strategies for successful adoption include: 

Communicate benefits clearly and consistently 

People need to understand not only how to use new systems, but why the change matters. Explaining the impact on efficiency, compliance, client service, or workload helps staff see the tangible benefits. Regular updates, reminders, and success stories reinforce the value and keep momentum high. 

Employ champions to support adoption 

Identify advocates within the firm who are enthusiastic about the new technology and can act as guides for colleagues. These champions bridge the gap between IT teams, vendors, and end-users, helping staff navigate challenges and encouraging consistent use. 

Provide proper training and updates to processes 

Comprehensive training is essential, and it should go beyond initial onboarding. As software develops or workflows are refined, ongoing training ensures staff stay confident and capable. Updating processes to align with the new technology avoids confusion and prevents old habits from undermining efficiency gains. 

It’s also important to recognise that resistance is often about more than just the software itself. Many lawyers and staff have an emotional attachment to older systems, or a sense of nostalgia for the way things “used to work.” Acknowledging these concerns, providing reassurance, and showing the practical advantages of the new system can turn hesitation into engagement. 

Successful adoption is a combination of clear communication, support structures, and process alignment. Technology can only deliver its promise when the people using it are equipped, motivated, and confident. 

Making Legal Tech Work for Your Firm 

The key takeaway from the webinar is that legal technology should help your firm work smarter, not just newer. Technology is a tool, not a magic fix. Start with your strategy, identify the specific problems you want to solve, whether that’s improving efficiency, strengthening compliance, enhancing client experience, or unlocking better insights from your data, and ensure any solution is fully integrated into your people, processes, and workflows. Without this alignment, even the most advanced software will struggle to deliver real value. 

Different firms will need different approaches to make tech work effectively. Large firms with complex workflows may require sophisticated integrations across multiple systems to ensure data flows seamlessly, processes are automated where possible, and staff can work without friction. In these cases, the focus is often on connecting case management, finance, time recording, and document management into a cohesive system that supports operational efficiency at scale. 

Smaller or boutique firms, on the other hand, can often thrive with simpler, well-integrated systems that focus on the essentials: case management, document management, and client communication. For these firms, success comes from selecting tools that are easy to adopt, fully understood by staff, and aligned with the way the firm operates rather than trying to replicate every feature of a larger platform. 

Ultimately, every firm, regardless of size, needs to ask: “What experience do we want for our lawyers and our clients?” Technology should enhance the day-to-day work of lawyers, making processes smoother and more reliable, while simultaneously delivering a better, more responsive experience for clients. By keeping this question front and centre, firms can make intentional, strategic decisions about legal tech, rather than being swayed by the latest trends or vendor promises 

With Thanks 

We’d like to thank Law Firm Ambition for hosting such an insightful webinar, offering practical guidance on navigating through the world of legal technology, with special thanks to host Andy Poole, and speakers Jane Pritchard, Paul Sams and David Baskerville. 

At Cashroom, as founding partners, we are proud to support initiatives that help law firms think strategically about technology, ensuring it delivers real value for both lawyers and clients. Be sure to sign up for our newsletter to receive details about the next Law Firm Ambition webinar in March, which will focus on managing your team, including handling difficult people. 

A few weeks ago, the Solicitors Regulation Authority (SRA) issued its long-awaited update following the consultation on Client Money in Legal Services. With over 450 responses, including event feedback and consumer research, the announcement clarified the regulator’s immediate priorities and the approach they intend to take moving forward. 

The update comes amid ongoing scrutiny of how law firms manage client funds, as the SRA seeks to balance robust client protection with operational practicality for firms of all sizes. Understanding these changes is crucial for legal finance teams, compliance officers and firm leaders alike.  

Focus on Strengthening Current Safeguards 

Rather than implementing structural reform straight away, the SRA will focus on enhancing protections under the existing system. Fundamental questions about the model for holding client money and the Compensation Fund will be revisited later, once improvements to the current framework are fully embedded. A progress report and a fresh consultation are expected later this year. 

Chair Anna Bradley commented on their recent meeting: 

“We consider there is a strong case to properly explore the long-term transformation of the model of holding client money and how the compensation fund is funded. However, our immediate focus is on making changes to better protect and safeguard client money under the current system. So we plan to consult later this year on these changes. We then plan to return to those bigger, longer term questions after we have made changes to the current system when we can give them the robust consideration they need.”

Industry Reaction 

The response has been broadly welcomed by legal finance professionals. Reflecting on the update, Chris O’Day, CEO of Cashroom, commented: 

“The SRA’s measured approach is encouraging. While no immediate structural changes are being made, firms should remain cautious about what may come next. At Cashroom, we will continue to provide the tools and expertise to manage client money securely today, while helping firms prepare for potential future changes.” 

 This measured approach demonstrates the SRA’s commitment to strengthening existing processes before considering broader reform, giving firms and service providers a clearer roadmap for the near term. 

Practical Implications for Law Firms 

Even without immediate structural change, the SRA update reinforces the need for robust client money management practices. Practical measures may include: 

• Conducting regular internal audits and reconciliations 

• Ensuring all staff are trained on client money rules 

• Establishing clear escalation procedures for anomalies or errors 

• Adopting technology solutions for real-time tracking and monitoring 

• Integrating client money oversight into firm governance structures 

For example, a mid-sized firm might implement dual-signatory controls on all client fund transfers, while a larger multi-office firm could focus on system integration to monitor client accounts across offices in real time. Scenario planning and clear reporting lines are also essential to respond effectively to discrepancies. 

Preparing for Future Regulatory Change 

The SRA has indicated that longer-term reforms may follow later this year. Firms can use this period to review current practices, strengthen controls, and identify areas for improvement. This proactive approach ensures that firms remain compliant today while being prepared for any future changes to client money regulations. 

Practical steps firms can take include: 

• Conducting a full process review: Map out how client money is received, held, and disbursed. Identify any inefficiencies, gaps, or manual processes that could be prone to error. 

• Enhancing governance and oversight: Ensure senior management regularly reviews client money processes, exception reports, and reconciliation results. 

• Staff training and accountability: Provide refresher sessions on SRA client money rules and clarify responsibilities for each team member handling client funds. 

• Technology adoption: Consider tools that allow real-time monitoring of client accounts, automated reconciliation, and alerts for unusual transactions. 

• Scenario planning: Develop clear escalation procedures for anomalies, errors, or potential breaches, so the firm can respond quickly and effectively. 

• Documentation and audit readiness: Maintain detailed records of reconciliations, approvals, and internal audits to demonstrate compliance if required. 

By embedding these practices now, firms not only mitigate current operational risk but also position themselves to adapt smoothly to any future regulatory reforms. Preparing in advance provides confidence that client funds are managed securely, and that the firm is resilient in the face of evolving regulatory expectations. 

How Cashroom Supports Firms 

Cashroom support firms with a team of qualified experts combined with a secure Cashroom Portal, which helps firms to stay compliant while safeguarding client funds. Our approach includes: 

• Experienced oversight: Our team provides guidance on client money rules, reconciliations, and internal controls. 

• Clear processes: We implement robust procedures for handling client funds, ensuring accuracy and consistency. 

• Open Banking and Confirmation of Payee checks: Adds an extra layer of security for client fund transfers. 

• Tailored support: Services are adapted to the size and complexity of each firm, whether small, medium, or large. 

• Audit readiness: Detailed records and regular reviews help firms maintain transparency and demonstrate compliance. 

This combination of expertise and structured processes ensures firms are prepared for current regulatory expectations while staying ready for any upcoming SRA changes. It allows legal finance teams to maintain client trust, mitigate operational risk, and focus on strategic priorities. 

Looking Ahead 

While structural reforms are on hold, law firms should continue to prioritise accuracy, transparency, and efficiency in client money management. Embedding strong operational controls, investing in staff training and utilising modern solutions helps firms manage risk and maintain confidence among clients and positions them for a smooth transition when the SRA revisits longer-term reforms. 

Combining technology with expert oversight remains the most effective way to safeguard client money and prepare for the future. 

Cashroom is proud to announce that it has been named Runner Up for Technology Product or Service of the Year at the prestigious Legal Technology Awards 2025. 

Following a win at the Modern Law Awards earlier this year, Cashroom’s first entry into the Legal Technology Awards makes this runner up finish even more meaningful. This recognition reflects the company’s ongoing commitment to developing innovative technology that supports law firms with secure, efficient and scalable financial management.  

The judges praised this submission “for its clear demonstration of how the nominee is addressing complex, real-world accounting and cashiering challenges faced by a client base of over 300 law firms across the UK. Their approach reflects a strong commitment to operational integrity and client-focused innovation.” 

Chief Marketing Officer Emma O’Day commented:  

“Being shortlisted was exciting in itself, but achieving runner-up in such a competitive category on our first entry is truly remarkable. The combination of a detailed written submission and a face-to-face interview with the judges added real weight to the recognition, making it a moment we deeply value. It reflects the vision, innovation, and dedication of our entire team, and we’re incredibly proud of what we’ve accomplished together.” 

Cashroom would also like to congratulate Legora on receiving the top award and extend recognition to all other winners and finalists who continue to drive forward excellence in legal technology. 

With continued investment in its portal and services, Cashroom remains committed to empowering law firms with technology that enhances compliance, efficiency, and client service. 

As 2025 draws to a close, many law firms are reviewing their performance, planning for the year ahead, and trying to make sense of the numbers behind their business. While annual accounts and compliance reports are essential, the real strategic value lies in management accounts. 

Management accounts provide a clear and timely picture of a firm’s financial position, including income, expenditure, cashflow, profitability, and key performance trends. Their true value comes from how firms use that information. 

When produced regularly and interpreted correctly, management accounts help firms: 

• Identify which departments or services are driving profit and which are not. For example, a firm might discover that litigation generates 60% of revenue but consumes 80% of staff hours, whereas conveyancing is highly profitable with less resource strain. This insight allows leadership to reallocate resources and focus on higher-margin services 
• Track billing patterns and anticipate cashflow gaps. By spotting seasonal slowdowns in corporate work, firms can plan temporary staffing adjustments or try client promotion marketing campaigns to smooth cashflow. 
• Spot opportunities for investment or expansion. Management accounts can reveal areas where a firm could grow or invest strategically. For example, a firm might notice that its family law department consistently exceeds revenue targets with minimal additional costs. This insight could prompt investment in hiring more specialists, expanding marketing in that area, or opening a new office to meet growing client demand. 
• Benchmark performance across teams, clients, or offices. By benchmarking revenue and profitability per office, a firm might find that one branch is underperforming due to staff inefficiencies, while another is highly profitable. Leadership can then implement targeted training, reallocate resources or adopt best practices from the high performing office.  

Instead of waiting until year-end to review performance, firms can make data-driven decisions every month, reducing risk and improving long-term stability. 

A simple breakdown of revenue, cost and profit per department can reveal where your firm is most effective. From this example, you can see that although litigation generates higher revenue, conveyancing delivers a higher profit margin. Insights like this help firms decide where to allocate resources, focus growth efforts, or invest in expansion.  

Preparing for 2026 with Confidence 

The end of the year is the perfect time to reflect on performance and plan for the future. Management accounts act as a roadmap, showing where the business has been, where it stands now, and where it is heading. 

With the right insights, firms can: 

• Set accurate budgets and growth targets for 2026 

• Adjust resources to meet demand more effectively 

• Identify and address inefficiencies before they become bigger problems 

• Strengthen compliance and financial governance 

In a challenging market, this level of visibility is essential. 

Beyond Compliance: Strategic Clarity 

Financial reporting is often treated as a tick-box exercise. Management accounts go beyond compliance by connecting performance metrics with real-world outcomes. They help leaders understand not just what happened but why it happened. 

This shift from reactive to proactive decision-making is what separates good firms from great ones. 

How Cashroom Helps 

Cashroom works with hundreds of law firms across the UK, producing clear, consistent, and insightful management accounts that empower better decision making. Using our secure Portal and expert legal finance team, firms gain: 

• Access to real-time financial data, allowing leaders to respond quickly to trends  

• Tailored reports highlighting key metrics such as profitability per department 
• Expert guidance from specialists who understand both numbers and regulations 

Whether it is improving profitability, forecasting growth, or maintaining compliance, Cashroom help firms transform financial information into actionable business intelligence, giving law firms the confidence to plan, invest and grow strategically.  

A Clearer View Ahead 

As you prepare for 2026, it is important to look beyond your year-end figures. Management accounts tell a story, and with the right insights, that story can be one of progress, profitability, and strategic success. 

With accurate data, actionable analysis and expert guidance, firms can approach the year ahead with confidence and clarity. 

Turning Uncertainty into Opportunity with Emerging Technologies

Trust is the foundation of any legal relationship. Clients don’t just hand over money, they’re placing their confidence in the firm to manage it responsibly. While compliance, rules, and procedures are critical, the psychological side of client money management is often overlooked. 

This blog explores why trust matters, how law firms can build it, and how partners like Cashroom help ensure that clients feel secure, informed, and confident throughout every transaction. 

Why Trust Matters in Client Money Management 

• Money is emotional: clients feel anxiety around handing over funds for conveyancing, property, or private client matters. 

• Trust affects client retention and reputation: firms perceived as careless with money risk losing clients and referrals. 

• Small errors can erode confidence: even minor mistakes in transactions can feel huge from the client perspective. 

Beyond Compliance: Making Clients Feel Secure 

Meeting regulatory requirements is critical, but it’s only part of the picture. A firm can be fully compliant yet still leave clients feeling uncertain if processes are opaque or communication is lacking. Clear explanations, timely updates, and visible safeguards help clients feel in control, reassured that their money is being managed safely. Transparency isn’t just a regulatory requirement, it’s a trust-building tool. 

How Law Firms Can Adopt Trust 

So, how can law firms actively build confidence around client funds? The key is visibility and consistency. Stable teams, reliable processes, and secure systems like audit trails and client portals, make clients feel informed and in control. Proactive updates and clear communication ensure clients aren’t left wondering about the status of their transactions. 

Cashroom’s Role in Building Client Confidence 

• Expert teams: dedicated cashiers and accountants who understand both compliance and client expectations. 

• Transparent technology: secure portals, Confirmation of Payee, and real-time reporting to make client money visible and traceable. 

• Stress-free experience: by handling complex financial processes efficiently, firms can focus on client service, leaving clients confident their money is safe. 

Final Thoughts 

Client money management is not just a legal obligation, it’s a trust-building exercise. How a firm handles funds speaks volumes about its values, attention to detail, and overall approach to service. Even small errors, delays, or a lack of transparency can undermine confidence, creating stress and damaging relationships that took years to build. 

On the other hand, firms that prioritise transparency, consistency, and proactive communication earn trust and signal to clients that their money is safe, that processes are robust, and that every transaction is treated with care. This confidence translates into stronger client loyalty, better referrals, and a reputational advantage that goes far beyond financial management alone. 

At Cashroom, we partner with law firms to make trust tangible. Through our dedicated teams, secure technology, and transparent processes, we help firms manage client money accurately, efficiently, and visibly. The result? Law firms can focus on delivering excellent legal service while clients feel reassured that their funds are in safe hands. 

By embedding transparency, reliability, and clear communication into every financial interaction, law firms turn what could be a source of anxiety into a competitive advantage. With Cashroom, compliance and efficiency become a platform for confidence, allowing firms to build stronger client relationships, protect their reputation and succeed.  

Halloween should be all about pumpkins on the doorstep, kids in costumes, and the odd fright when you realise you’ve answered the door with no sweets left. What it shouldn’t be is the horror story of choosing the wrong outsourced legal cashiering provider. Unfortunately, for some firms, that “cheap” option turns out to be a nightmare far worse than facing disappointed trick-or-treaters. 

At Cashroom, we hear too many stories from firms who’ve been tricked into thinking they’ve found a bargain, only to find the true cost lurking in the shadows, then they come to Cashroom for help. Here’s what can happen when the wrong provider knocks on your door. 

A Price Hike Disguised as a Treat 
What began as a reasonable fixed fee quickly turned into a nasty shock; fees hiked by more than 30%, despite a contract stating otherwise, no notice and no explanation. No discussion, no negotiation, just a trick that left the firm trapped. 

At Cashroom, our pricing is transparent. No nasty surprises, no hidden clauses, just clarity and fairness. We review annually and will discuss our pricing openly with every client. 

The Disappearing Cashier Act 
With the cheaper option, consistency vanished like a ghost in the night. Multiple cashiers rotated in and out, mistakes crept in, and relationships never had a chance to build. Cashroom clients get a dedicated, stable team who know your firm inside out, always reliable, always there when you need us. We also provide our own secure portal with a clear, visible audit trail, so you can see exactly what’s happening and when. No confusion, no surprises. Unlike other providers still relying on outdated and highly risk-prone email communication, we deliver a modern, transparent, and safe service you can trust.  

Double-Counting: The Zombie Bill That Wouldn’t Die 
Another fright came from double-charging. Transactions were counted twice across synced systems, artificially inflating the bill. Suddenly the “cheap” option wasn’t so cheap after all. 

Cashroom’s billing is simple, fair, and transparent – no zombie charges clawing their way back onto your invoice. 

A Chaotic Handover: The Final Jump Scare 
When the firm tried to escape, the handover was rushed and botched, leaving accounts in a mess. Their accountants had to swoop in at the last minute to salvage the situation and of course there was a high charge for this. At Cashroom, transitions are smooth and professional, ensuring your financial data is safe and secure. 

Don’t Let the Wrong Choice Haunt You 
The lesson is clear: the cheapest option can turn out to be the costliest. Poor service, unfair billing, and broken promises don’t just waste money, they waste time and peace of mind. 

This Halloween, the only scary thing should be forgetting where you hid the sweets and hearing the doorbell ring. Don’t let a poor provider haunt your firm. With Cashroom, you get more than value. You get confidence, clarity, and the backing of an experienced team that’s always on your side. 

Contact us today and discover the Cashroom difference – no tricks, just treats.  

We’re delighted to announce that Alex Holt has been shortlisted for Business Development Professional of the Year at the LEAP Modern Law Conveyancing Awards 2025! 

Alex’s dedication, expertise, and genuine commitment to client success have been instrumental in strengthening Cashroom’s relationships, expanding our client base, and supporting law firms across the UK.
This nomination is a well-deserved recognition of the energy and impact Alex brings every day – congratulations, Alex! 

Promotions Across the Team 

We’re also proud to celebrate several well-earned promotions within our team: 

• Kendra Bryant, Teresa Wilson, and Stephen Ellison have been promoted to Senior Manager, recognising their continued leadership in overseeing client portfolios and ensuring law firms receive expert guidance and exceptional service. 

• In our finance leadership team, Laura Todd and Allan Gallacher take on new responsibilities as Finance Managers, further strengthening our financial operations and client support. 

• And we’re pleased to announce Derek Twaddle has been appointed Head of Finance, leading our internal accounts team and ensuring a strong and sustainable financial foundation for the business. 

Each of these promotions reflects the outstanding talent, dedication, and professionalism that make Cashroom such a great place to work and grow. 

Building Careers at Cashroom 

We’re committed to helping every member of our team reach their full potential. Through initiatives like the Cashroom Academy, mentoring programmes, and professional qualification support, we continue to invest in the development of our people – ensuring that exceptional talent is recognised, nurtured, and celebrated. 

We’re incredibly proud of Alex, Kendra, Teresa, Stephen, Laura, Allan, and Derek, and excited to see the continued positive impact they’ll make – for our clients, our colleagues, and the future of The Cashroom. 

The Solicitors Regulation Authority’s recent decision to delay immediate changes to client account arrangements is a significant moment for law firm finance leaders. Although the regulator has stepped back from sweeping reforms following its extensive consultation that generated over 450 responses, the highest engagement in SRA history, the underlying message remains clear: transformation is inevitable.

The SRA’s consultation response explicitly acknowledged “there is a strong case to properly explore the long-term transformation of the model of holding client money.” However, immediately following the consultation, the regulator’s focus will be how to better protect and safeguard client money under the current system. Most, if not all, firms will be satisfied with this outcome, but I suspect will not be overly excited by the SRA’s new focus, because safeguarding client money is nothing new for prudent firms. In well-run practices, security of client funds has always been the top priority when choosing a bank or managing client accounts, far outweighing any pursuit of higher interest or convenience.

For finance leaders and the banks that support them, this creates both breathing space and a time incentive to prepare strategically for eventual change.

The Strategic Implications of Regulatory Uncertainty

The consultation’s postponement doesn’t signal abandonment of reform ambitions. Rather, the SRA has committed to returning to the “longer-term question of solicitors holding client money” after implementing enhanced safeguards. This phased approach creates a unique strategic opportunity for forward-thinking firms to position themselves advantageously while competitors remain reactive.
The financial implications are substantial. Currently, three-quarters of regulated firms hold client money, with many generating meaningful revenue from interest differentials. Interest rates on client accounts vary dramatically between providers—with some firms earning gross rates north of the BoE base rate, while paying clients a relatively small fraction. This approach and income stream faces existential uncertainty.

Scenario Planning for Alternative Arrangements

Progressive finance leaders should be developing comprehensive scenario analyses around three potential outcomes: enhanced oversight with retained client accounts, adoption of Third-Party Managed Accounts (TPMAs), and hybrid models combining traditional and alternative arrangements.

Under enhanced oversight scenarios, firms should anticipate stricter compliance requirements, including more frequent accountant reports, enhanced cybersecurity mandates, and prescriptive timeframes for returning residual balances. The current consultation suggests a 12-week deadline for returning client funds post-completion.

The TPMA scenario presents more fundamental operational changes. These FCA -regulated providers offer outsourced client money management, removing regulatory exposure in theory while potentially increasing transaction costs. Early analysis suggests TPMA costs range from subscription-based models to per-transaction fees, requiring detailed financial modelling against current client account income.

Positioning for Competitive Advantage

Finance leaders who view this regulatory uncertainty as opportunity rather than threat can create significant competitive advantages. Firms that remain open minded about the possible permutations and proactively develop expertise in those scenarios will be better positioned when regulatory changes eventually materialise.

Form a banking perspective, this regulatory uncertainty creates strategic opportunities for banks to differentiate their offerings to legal sector clients. Forward-thinking banks are already developing sophisticated solutions that address both current compliance requirements and potential future changes.

Strategic Recommendations

The immediate priority is developing regulatory scenario planning that quantifies the financial impact of each potential outcome. This requires detailed analysis of current client account profitability, including hidden administrative costs.

Finance leaders should also be building strategic banking relationships with providers offering forward-looking solutions rather than just competitive interest rates. The banks that will add most value are those that can provide, enhanced protection of clients’ funds, those that have an ethos of investing in technology infrastructure and service capabilities that adapt to changing requirements.

The SRA’s decision to postpone immediate action provides valuable time for strategic preparation. Finance leaders who use this period to build capabilities, develop partnerships, and create operational flexibility will emerge stronger regardless of the eventual regulatory outcome. The question isn’t whether change will come, but whether your firm will lead with initiative or take a reactive approach when it does.

This blog is inspired by the recent webinar from Law Firm Ambition, titled “Effective Performance Metrics,” and reflects key insights on how law firms can use KPIs to drive both operational and strategic success. 

Setting effective Key Performance Indicators (KPIs) is critical for law firms striving to improve both operational efficiency and long-term strategy. But it’s not just about putting numbers on a page. KPIs need to be contextual, targeted, and actionable to truly drive performance. 

The Importance of Context 

KPIs must be set in line with your firm’s vision and strategy. One of the biggest mistakes businesses make is updating their vision without adapting the strategy, or worse, keeping KPIs the same despite strategic shifts. This often results in misalignment and missed opportunities. KPIs should be designed to drive positive change, be SMART (Specific, Measurable, Achievable, Relevant, Time-bound), and introduced at the right level of the business. Every team member needs to understand what they are responsible for and how it contributes to the overall success of the firm. When everyone knows what they need to achieve, the firm’s objectives become a collective effort rather than a siloed activity. 

Operational vs Strategic KPIs 

Law firms are becoming more strategic than they were five to ten years ago by using tools like Power BI and Katchr to monitor performance. However, in a poll conducted by Law Firm Ambition during a recent webinar of around 200 lawyers, it indicated that many firms still have work to do. When asked how well their KPIs drive operational performance, 12% said poor, 51% said okay, 30% said good, and only 5% said excellent.  

Strategically, 14% of respondents focus solely on short-term goals, 58% a bit, 23% quite a lot, and just 5% focus on long-term success. Firms in the first two categories have an opportunity to strengthen their KPI approach by documenting, aligning with strategy, and regularly reviewing them, they can ensure the right conversations are happening across the business. 

Common Pitfalls 

There are several common pitfalls with KPIs. Poor data quality can lead to unreliable insights, while “watermelon KPIs” give the illusion of success by appearing green on the outside while the real problems are red underneath, giving a false sense of security. Having too many KPIs can also create confusion rather than clarity, and metrics that are no longer relevant, such as traditional chargeable hours which may not reflect the realities of modern legal work with AI tools. To be effective, KPIs need to be limited in number, clearly understood, and actionable at every level of the firm. 

Key Drivers of Success 

Effective KPIs reflect the core drivers of law firm success. Reputation and trust underpin client retention and referrals. Strategic leadership ensures everyone understands the mission and direction. Financial health and cash flow management are essential. Profits alone aren’t enough, as many high-profile firms have struggled due to cash flow issues. Operational effectiveness drives financial performance, while talent management ensures legal, non-legal, and AI-capable staff perform in harmony. Finally, adaptability is critical, KPIs must allow firms to pivot in response to changes in the market. 

Non-Financial KPIs 

While financial metrics remain vital, non-financial measures are equally important. Many firms focus heavily on finance, with 59% of KPIs tracking less than 10% on clients and other non-financial areas.  

Metrics such as client satisfaction (NPS), staff engagement, quality and compliance, technology adoption, cross-selling, and brand awareness are critical. Firms that prioritise these areas are better positioned to retain clients, maintain happy staff, and ensure long-term sustainability. 

Making KPIs Work 

For KPIs to truly drive performance, the right data must be shared across the firm. Operational processes, client lifecycle management, and cash flow monitoring need to be part of everyday reporting. Visual tools, such as traffic-light schemes and leadership scoring, can make progress visible and actionable. Integrating KPIs into appraisals and reward systems ensures accountability and encourages consistent improvement. Modern AI tools can summarise data and provide actionable insights, helping firms make informed decisions and drive meaningful change. 

Final Thoughts 

KPIs should not just measure performance. They should drive the business forward, improve client satisfaction, enhance staff engagement, and ensure strategic readiness for the future. By balancing financial and non-financial measures, keeping KPIs simple, and making sure everyone understands them, law firms can create a culture of accountability, continuous improvement, and long-term success. 

This blog is inspired by the recent webinar from Law Firm Ambition, titled “Effective Performance Metrics,” and reflects key insights on how law firms can use KPIs to drive both operational and strategic success. We would like to give a special thanks to the host Andy Poole and panel Alexandra Hatchman, Andy Harris and Martin Page for sharing their expertise and insights. 

Register here for the next Law Firm Ambition webinar “Law Firm of Tomorrow: A Strategic Overview of Legal Technology” taking place 25th November

Managing client money is one of the most important and highly regulated responsibilities for law firms. That’s why more law firms in the UK and Scotland choose Cashroom for outsourced accounting services for law firms. From legal cashiering and payroll for law firms to management accounts, we deliver finance solutions designed specifically for the legal sector, combining deep expertise with innovative technology. 

Specialists in Legal Finance for Law Firms 

Cashroom is the leading specialist in outsourced accounting for law firms. As an approved supplier of the Law Society of Scotland and preferred supplier for LawNet, our experienced team works remotely as an extension of your firm. With experienced Charted Accountants and SOLAS cashiers, we provide a reliable, cost-effective service without compromising on compliance or quality. 

Find us on the Law Society of Scotland website 

Seamless Practice Management System (PMS) Integrations 

Our platform integrates with a wide range of Practice Management Systems (PMS), giving law firms real-time visibility of client matters through the Cashroom Portal. This streamlines workflows, improves productivity, and ensures compliance while reducing the administrative burden on your team. 

Pioneering Legal Finance Innovation 

We were the first non-bank  provider to introduce Confirmation of Payee and Open Banking to the legal sector. These innovations have transformed how law firms process payments, improving security, efficiency, and accuracy in managing client funds. 

Why Law Firms Trust Cashroom 

Firms trust Cashroom because we combine sector-specific expertise, innovative technology, and exceptional client service. We help law firms stay compliant, operate more efficiently, and focus on growth – all while ensuring client funds are handled securely. 

See How We Help Law Firms Succeed 

Want to see the impact Cashroom can have on your firm? Explore our case studies to read real examples of how we’ve helped UK and Scottish law firms streamline finance, stay compliant, and focus on growth. 

Discover why hundreds of law firms choose Cashroom as their trusted finance partner. 

Cashroom is delighted to announce that it has been shortlisted as a finalist at the 2025 Legal Technology Awards, one of the most prestigious awards recognising excellence in legal technology, IT innovation, and digital solutions within the UK. The winners will be revealed at the awards ceremony on 19th November 2025 at City Central at the HAC in London. 

The Legal Technology Awards, hosted by Netlaw Media, celebrate innovation, leadership, and technological advancements in the legal industry. They highlight organisations that are transforming the way law firms operate through technology, improving efficiency, compliance, and overall service delivery. Being shortlisted for Technology Product or Service of the Year is a significant achievement for Cashroom and reflects our ongoing commitment to developing solutions that make legal finance and operations more effective. 

Cashroom deliver an outsourced legal cashiering service via their custom built portal. The Cashroom Portal, is designed to help law firms streamline financial processes, optimise cash management, and improve operational efficiency. By combining advanced technology with our experienced team of legal finance professionals, the Cashroom Portal enables law firms to focus on delivering exceptional client service while ensuring compliance with regulatory requirements. This recognition from the Legal Technology Awards underscores the value and impact of our innovative technology in supporting law firms across the UK. 

Over the last 15 years, Cashroom has experienced significant growth, now supporting over 300 law firms, almost doubling in size since the start of the COVID-19 pandemic. Our service-led approach, supported by our technology, allows us to provide scalable accounting, payroll, and legal cashiering solutions that meet the shifting needs of law firms of all sizes. 

Being named a finalist is not only a reflection of our technology but also of our dedicated team. At Cashroom, we believe that combining expert people with intuitive technology is the key to helping law firms work smarter, improve profitability, and achieve sustainable growth. Our commitment to innovation ensures that we continue to meet the demands of the legal sector while providing high-quality, reliable, and compliant services. 

We would also like to take this opportunity to congratulate our fellow finalists in the Technology Product or Service of the Year category: BRYTER, ContractPod AI, Legora, and NetDocuments. It is an incredible line-up, and we are honoured to be recognised alongside these leading innovators in legal technology.  

For law firms looking for trusted outsourced accounting and financial management solutions, Cashroom provides a comprehensive range of services designed to reduce administrative burden, improve reporting accuracy, and enable better decision-making. From legal cashiering and management accounts to payroll and regulatory compliance, our technology and people-driven approach ensure law firms can focus on their core business – serving clients. 

When I were a lad….

I know, that start to a sentence usually induces a sigh from those within earshot. But hear me out…

First let me set the scene- why do I have anything relevant to add to a discussion about progress and futureproofing in the legal sector?

As a trainee solicitor (Articled Clerk in fact) in 1991, my early lawyering days were pre-email, pre-internet and mostly pen and paper based. Word processors were only just being introduced.

Consider how far things have moved on since then. Mobile phones, SMS, Emails, internet, websites, WhatsApp, Teams calls, Social Media.

While I may not be a guru on any of these things (friends and colleagues will be nodding at this point) I am an effective user, and my everyday working life is enabled and impacted by use of these tools which didn’t even exist when I started.

Now think about a new lawyer starting at your firm tomorrow. All of the tech I’ve mentioned is THEIR starting point. And just like my early days, there is a tech advance looming large on the horizon for them and the sector. I’m talking of course about AI. There will be thought leaders within your firms and within your advisory circles. Some of the brightest thinkers on innovation will be the new starters with their fearless adoption of new technology. However just like in my day, the best solutions will, in my view, come from harnessing the experience of all the different Gens.

Because right now, the stock phrase is “law firms need to be ready for AI”. What does that even mean? 34 years ago if someone said “Law firms need to be ready for the internet” the same lack of clarity would have been evident.

The simple fact is that the pace of change is faster, and the road ahead is just as ill-defined, but with the application of experience, enthusiasm and the seeking of appropriate guidance from real experts, a truly exciting future opens up.

34 years ago, as tech changed, it was embraced. There were hard lessons. There were painful and difficult alterations to long-established ways of working. But look at where we have all got to now. Consider where we might be in 34 more years.

As Jean-Luc Picard says- “Let’s see what’s out there”. 

For every law firm, managing money is non-negotiable. Client account reconciliations, payroll, office accounts, and more all demand accuracy, regulatory knowledge, and time. For many firms, these pressures pile up, stretching already busy teams and distracting from client work. 

Law firms of all sizes are seeing the benefits of outsourcing their finance functions to Cashroom. From high-street practices like Norman H Barnett & Co Solicitor to top 60 UK firms such as Taylor Rose, Cashroom helps legal teams focus on clients while ensuring every financial process is compliant, efficient, and expertly managed.

By combining deep legal accounting expertise with secure, efficient technology, we give firms complete peace of mind over their finances. This allows lawyers to concentrate on what they do best, and the results speak for themselves across the profession. 

Building Efficiency for a High-Street Firm 

When Norman H Barnett & Co first considered outsourcing, the idea of handing over cashiering felt like a leap. Like many high-street firms, their legal cashiering had always been handled in-house. But the burden of staying on top of reconciliations, compliance checks, office accounts, and payroll was becoming an increasing drain on the team’s time and attention. 

After hearing positive feedback from other firms who already worked with us, they decided to partner with Cashroom to manage their client accounts. Very quickly, the difference was clear. Not only were reconciliations being handled with complete accuracy and reliability, but the team also had access to expert support whenever questions arose. 

Over time, the partnership grew. Cashroom now manages the firm’s office accounts and payroll too, reducing the administrative strain on staff and ensuring that every financial process is both compliant and efficient. 

As Partner Faddy Malik explains: 

“Initially, our legal cashiering was done in-house, but after hearing the great work they do for other law firms that we know, we decided to partner with Cashroom to manage our client accounts. Their expertise, reliability, and seamless service made expanding our partnership with them an easy choice. Cashroom now manages our office accounts and payroll too, freeing us up to focus on our clients. Their professional approach and thorough understanding of the legal sector have given us peace of mind and improved efficiency across our financial operations. We are incredibly pleased with the support they offer.”

 By outsourcing to Cashroom, Norman H Barnett & Co transformed financial management from a daily challenge into a smooth, stress-free process, freeing the team to put clients first. 

Delivering Scale for a Top 60 UK Firm 

At the other end of the spectrum, Taylor Rose, one of the UK’s top 60 law firms with over 1,000 fee earners, faced a different challenge. For a firm of their size, finance isn’t just about ticking the compliance box; it’s about scale, resilience, and the ability to support rapid growth. 

Taylor Rose needed a partner who could match their pace and deliver specialist legal accounting expertise at volume. From the very first conversations, it was clear that Cashroom could meet those needs. The transition from enquiry to go-live was fast, seamless, and supported at every step by our experienced team. 

Once onboard, Taylor Rose gained the reassurance of working with robust systems designed specifically for legal finance, along with the smooth user experience of the Cashroom Portal. Our technology gave them visibility and control, while our sector knowledge provided confidence that every process, from reconciliations to reporting, was being handled correctly. 

The firm has already expanded the scope of its partnership with Cashroom, recognising the long-term strategic value of outsourcing finance functions at scale. 

As they put it: 

“As a top 60 UK law firm with over 1,000 fee earners, it was essential for us to find a finance partner capable of delivering both scale and deep legal accounting expertise. Cashroom stood out from the outset, and the journey from initial enquiry to go-live was fast, seamless, and highly professional. Cashroom has clearly demonstrated its ability to support a firm of our size. Their robust systems, strong grasp of legal compliance, and the smooth user experience of the Cashroom Portal gave us immediate confidence. We’ve been so impressed with the quality and efficiency of their service that we’ve already expanded the scope of our engagement. We’re genuinely excited about this partnership. Working with Cashroom is proving to be a smart, strategic decision that will deliver long-term value to our firm.” 

For Taylor Rose, Cashroom has proven to be far more than a service provider. It’s a strategic partner that delivers the expertise, systems, and capacity to support growth well into the future. 

A Partner for Every Firm 

These stories underline something important: whether you’re a local practice or a national player, Cashroom can support you. From efficiency to compliance with the Solicitor Regulation Authority, our services scale to fit your needs, backed by technology built for law firms and a team that lives and breathes the legal sector. 

Outsourcing your finance functions isn’t just about saving time. It’s about working smarter, protecting your firm, and creating space to grow. 

How Innovation Is Reshaping the Legal Industry

The legal industry has long been known for tradition and caution when it comes to change, but that’s no longer the case with tech adoption. Over the past decade, and especially post-pandemic, legal tech has gone from a niche curiosity to a driving force behind the transformation of legal services. 

So, what’s behind this shift, and what should law firms be paying attention to? 

Client Expectations Are Changing 

Modern clients – whether individuals or businesses – expect the same level of speed, accessibility, and transparency they get from other service providers. Legal tech tools like Clio for Clients, which offers a secure client portal for messaging and document sharing, and DocuSign, which enables e-signatures from any device, are becoming industry staples. Many firms are also integrating Calendly for easy online appointment scheduling. 

Clients want instant updates, mobile access, and simplified communication and they’re not afraid to switch providers if their expectations aren’t met. Firms that fail to adapt risk being seen as outdated or inaccessible. 

Remote Work Is Here to Stay 

The shift to hybrid or fully remote working models has pushed law firms to adopt cloud-based solutions like LEAP or Actionstep for case and document management. Platforms like Microsoft Teams and Zoom have become daily communication tools, while Net Documents and iManage are helping firms store and share sensitive documents securely in the cloud. 

While this transition has improved flexibility and scalability, it’s also exposed gaps in firms’ digital infrastructure, highlighting the need for robust tech stacks and secure remote access. 

Efficiency Through Automation 

From contract analysis to billing, automation tools are cutting down the time lawyers spend on repetitive tasks, freeing them to focus on higher-value work. Many modern firms have already adopted automation tools to streamline their workflows and improve efficiency. AI-powered legal research, smart document review, and workflow automation are no longer concepts of the future; they’re already widely used across the sector.  

On the financial side, tools like Xero and QuickBooks, especially when integrated with legal practice management systems, simplify billing, invoicing and accounting for lawyers. This not only reduces the administrative burden but also creates a more efficient, accurate, and scalable finance function. 

Cybersecurity Is a Growing Concern 

With the increased use of digital tools comes a growing risk of cyber threats. Law firms are custodians of sensitive client data, and any breach can have serious consequences. Legal tech must go hand-in-hand with strong cybersecurity practices and ongoing training. Two-factor authentication tools such as Duo Security, and endpoint protection software like Dashlane or Keeper, are becoming standard practice. 

Cybersecurity isn’t just about having the right tools. It’s about continuous employee training, secure remote access policies, and building a culture of security awareness across the firm. 

Access to Justice Is Expanding 

Perhaps one of the most exciting aspects of legal tech is its potential to bridge the justice gap. From online legal advice platforms like Rocket Lawyer to DIY legal document tools, technology is helping make legal services more accessible and affordable for those who need it most.  

Final Thoughts 

Legal tech is not about replacing lawyers. It’s about empowering them. Firms that embrace innovation will be better positioned to serve clients, retain talent, and stay competitive in today’s modern market. 

The future of law is digital. Is your firm ready? 

If you’ve ever wondered why risk assessments feel like an uphill battle in your law firm, you’re not alone. Despite being fundamental to legal practice, risk assessments remain one of the most challenging aspects of compliance for many firms. So what’s making it so difficult?

The Triple Challenge

The problem isn’t just one thing – it’s a perfect storm of three interconnected issues that create a compliance nightmare.

The Policy Gap sits at the heart of the matter. While compliance policies tell law firms what they should do to assess client and matter risk, they fail to define clear digital processes or measurable outcomes. It’s like being given a destination without a map.

Tick Box Culture compounds this problem. The SRA demands that assessments are completed systematically with a holistic view of risk, yet provides tick-box templates that drive offline, non-digital practices. This creates a disconnect between the regulator’s expectations and the tools they provide.

The Frankenstein Tech-Stack completes the trilogy of challenges. Most law firms rely on multiple applications built on legacy technology, with disconnected processes and unstructured data that make it nearly impossible to join the dots and see the bigger picture.

A Fundamental Misunderstanding

Perhaps we need to rethink what we mean by ‘Risk Assessment’ entirely. The term doesn’t fully capture the broader strategic value this thinking brings to a business. The real challenge lies in translating risk insights into practical, actionable behaviours for lawyers.

The Technology Evolution Gap

The legal tech landscape has evolved dramatically. In 2020, biometrics became more accessible for validating identity without office visits. Between 2020-25, open banking adoption soared, providing stronger data and deeper context for source of funds verification. March 2021 saw HMLR pushing law firms toward NFC-enabled apps for passport validation through Safe Harbour requirements.

Yet despite these technological advances, risk assessment processes largely remained static. Simply throwing AML tech at the problem won’t fix the underlying issues.

Beyond Checklists: Driving Robust Judgments

Risk assessments should be opportunities for lawyers to apply commercial, ethical, and strategic judgment – not just compliance exercises. When done properly, they:

• Support the trusted adviser role – clients expect more than just legal accuracy
• Strengthen firm reputation – consistent, well-judged risk calls build credibility and trust
• Enable strategic decision-making – robust judgments help clients make informed decisions
• Drive internal consistency – principled judgment across the firm ensures a consistent, risk-aware culture

Making It Audit-Ready

The ultimate test isn’t just completing the assessment – it’s being able to recreate your thinking when the SRA asks questions later. This requires a simple but effective approach: say what you do, do what you say, and record everything properly.

Best Practice Recommendations

To transform your risk assessment process, focus on six key areas: give teams instant access to risk policies, update policies promptly to meet regulatory changes, ensure training reflects your specific policies, work with trusted data and technology providers, move from reactive to proactive approaches, and create a single source of truth for risk assessment results.

Risk assessments don’t have to be the compliance headache they’ve become. With the right approach, technology, and mindset, they can become powerful tools for strategic decision-making and client service excellence.

Forsyte specialises in transforming compliance from a cost centre into a strategic asset, helping law firms digitise and streamline their risk assessment workflows before inefficiencies become real risks.

In the legal sector, the handling of client money is governed by stringent regulations, reflecting its importance. Whether managed internally or through an outsourced provider, ensuring the utmost protection and compliance is non-negotiable.  

While numerous outsourced providers and consultants claim expertise in legal accounting, it’s crucial to verify their credentials and experience to ensure they meet the specific needs of your firm. Before delegating this critical responsibility, consider the following five questions to safeguard your firm’s accounting and your clients’ trust. 

1. How is client data being protected?

Cyber threats are increasingly sophisticated, protecting client data is paramount. Your provider should implement robust cybersecurity measures, including advanced encryption protocols, multi-factor authentication, and secure data storage solutions. Regular security audits and staff training on data protection are also essential to mitigate risks. Additionally, compliance with data protection regulations, such as the GDPR, should be a standard practice, ensuring that client information is handled with the highest level of confidentiality and integrity. 

2. Do they understand the Accounts Rules?

Solicitors Regulation Authority and Law Society of Scotland Accounts Rules are comprehensive and specific to law firms. Compliance is not optional; it’s a fundamental requirement. Your provider must demonstrate a deep understanding of these rules, including the proper segregation of client funds, timely reconciliations, and accurate record-keeping. Familiarity with recent amendments is crucial. An adept provider will not only ensure compliance but also proactively advise on best practices to maintain financial integrity. 

3. Do they offer transparency and reporting?

Transparency in financial transactions is not just a best practice, it’s a necessity. Clients entrust law firms with their funds, expecting meticulous handling and clear accountability. Your financial service provider or in-house team must offer comprehensive reporting tools that grant real-time access to financial data, including transaction histories, account balances, and reconciliation reports. 

A user-friendly portal, such as the one we utilise at Cashroom, facilitates easy monitoring and auditing, significantly enhancing your firm’s financial oversight. This level of accessibility ensures that you can promptly identify and address any discrepancies, maintain accurate records, and uphold the highest standards of financial integrity. 

Moreover, the ability to generate customised reports tailored to your firm’s specific needs is a hallmark of a provider committed to transparency. Whether it’s tracking client account activities, monitoring compliance or preparing for audits, having detailed and customisable reporting capabilities is invaluable. By partnering with a provider that prioritises transparency and offers robust reporting solutions, your firm can build stronger client relationships, ensure compliance, and operate with greater confidence and efficiency. 

4. Who’s actually managing your finances?

Understanding who handles your financial operations is essential. Enquire about the qualifications and experience of the team members assigned to your account. Are they qualified legal cashiers with a track record in legal finance? Do they receive ongoing training to stay abreast of regulatory changes? A reputable provider will be transparent about their team’s credentials and will ensure that your finances are managed by competent professionals who understand the nuances of legal accounting. 

5. What happens if something goes wrong?

Whether it’s a human error or a cyber incident, there should be clear contingency plans, communication protocols, and professional indemnity cover. Despite the best precautions, errors or unforeseen incidents can occur. It’s imperative to know your provider’s contingency plans. Do they have protocols for addressing discrepancies or breaches? Is there a clear communication strategy to inform your firm promptly? Additionally, verify that they carry adequate professional indemnity insurance to cover potential liabilities. Understanding their approach to risk management and issue resolution will give you confidence in their ability to handle adverse situations effectively. 

Anything else? 

This list is not exhaustive and while these are 5 key questions there are others you should ask when evaluating an outsourced provider including, cost structure and transparency, are there hidden fees and do they offer flexible pricing models?  Can they provide references from other law firms like yours that they work with? Is there a structured onboarding process? Do they have a service level agreement? By delving into these additional areas, cost transparency, client references, onboarding procedures, and service level agreements, you equip your firm with a robust framework to evaluate potential outsourced legal accounting providers thoroughly. This comprehensive approach not only mitigates risks but also promotes a partnership that aligns with your firm’s objectives and standards. 

Why Choose Cashroom? 

At Cashroom, we specialise in providing outsourced legal cashiering and accounting services tailored to the unique needs of law firms. With over 15 years of experience and a team of over 140 specialists, we manage the finance functions for more than 300 law firms across the UK. Our services encompass legal bookkeeping, credit control, payroll, and process review projects, all delivered through our secure Cashroom Portal. As the UK’s leading outsourced legal accounting supplier, we are committed to upholding the highest standards of compliance and efficiency. 

Our team comprises qualified legal cashiers who are well-versed in the Accounts Rules. We provide real-time reporting, ensuring transparency and allowing you to make informed decisions promptly. In the event of any issues, our robust contingency plans, comprehensive insurance coverage and cyber essentials plus accreditation ensure that your firm is protected. 

Entrusting your client money to a provider is a significant decision. By asking these critical questions and choosing a partner like Cashroom, you can ensure that your firm’s financial operations are in safe and capable hands. 

A virtuous circle is defined as

‘a chain of events in which one desirable occurrence leads to another which further promotes the first occurrence and so on resulting in a continuous process of improvement’

If you are responsible for the successful operation of a growing private client team and you currently proactively engage your existing clients, you probably have a virtuous circle.

If you do not currently engage them, please read on, this piece may stimulate some ideas

Existing Private Clients

Your existing clients have engaged your firm because they were motivated to take control of their affairs. You helped them with whatever technical requirements they had. Both parties to the transaction created a desirable outcome – they were in control of the situation.

But, then what happens?

The client’s life moves on and their situation changes. Many of your clients are in one of two states:

• Procrastination: they understand they should make changes but have not got around to it
• Ignorance: they have no idea that they should update their affairs in order to regain control

They no longer have the control they sought from engaging with you.

Your Firm

Undoubtedly provides an excellent service when helping your clients to take control of their affairs.

But, then what happens?

Your fee earners move on, servicing more clients and generating fees. Inevitably they are too busy to dedicate time to anything beyond their primary objective. In the absence of a support function there is an inevitable outcome:

• Relationships between the parties elongate and sometimes snap.
• Information held on existing clients becomes outdated. Its value degrades quickly

The control that the firm would like over their existing clients is no longer there

Vicious Cycle rather than Virtuous Circle

The loss of control experienced by both client and firm is the opposite of a virtuous circle. It’s a vicious cycle:

• Clients are vulnerable
• Partners and fee earners are working hard to secure, on board and service ever more new clients
• The value of a firm’s existing clients is diminishing.
• Existing clients are not being served

From the high point, desirable outcome, the vicious cycle leads those same parties to a point where they are both losers

Breaking the Cycle

As that famous Mr Einstein explained about the definition of insanity, something must be changed.

We suggest:

1. That firms have a duty to their existing clients to ensure they are not ignorant of the impact of change. Firms can and should provide simple to understand, engaging and informative communications on a regular basis
2. Clients need to be stimulated out of procrastination. It can be argued that the firm should take responsibility to do this as it is highly likely to result in additional fee income
3. Taking proactive action to do point 1 and 2 ensures that the client relationship strengthens
4. And that, as a result of these actions, the asset value of the client willbank is enhanced

This, many of you will agree, is fine in theory. How can this virtuous circle be made to happen?

The key for most firms is investment in the resources needed to allow fee earners to maximise time on their primary outcome – seeing as many clients as possible. Those resources must have the skills and experience needed to proactively engage the existing clients. These include:

• Getting and keeping information updated over time
• Designing and delivering innovative and informative content that generates action
• Breaking through client procrastination

If done correctly the investment will yield compelling returns from a financial perspective. It will help the firm to stand out for the quality of its service and it will replace a vicious cycle with a virtuous circle.

Again, you may say, fine in theory. In practice are these resources best brought in house or could they be outsourced?

WBT provides a distinctive outsourced model where we work on the firm’s behalf. We deploy a combination of technology and good, old fashioned, customer oriented humans to proactively engage high priority existing clients.

We adopt the firm’s tone when communicating and ensure that the firm stays in control of both its data and the rate that new work is generated from existing clients. Our model ensures you generate tangible returns from your existing clients from the start of our engagement.

Client account reconciliation is one of the most important compliance responsibilities for law firms in England and Wales. Ensuring that client money is correctly handled, recorded, and reconciled in line with the Solicitors Regulation Authority (SRA) Accounts Rules is critical to maintaining trust and avoiding regulatory breaches. 

But what exactly do the SRA rules require when it comes to reconciling your client account?

What Is a Client Account Reconciliation? 

Client account reconciliation is the process of comparing the balance in your firm’s client account records with the balance shown in your bank statement and identifying and resolving any discrepancies. This ensures that all client money is accounted for and accurately recorded. 

For law firms, this is not just a best practice, it’s a regulatory requirement under the SRA Accounts Rules 2019. 

What Do the SRA Accounts Rules Say? 

Under Rule 8.3 of the SRA Accounts Rules, law firms are required to:

“You complete at least every five weeks, for all client accounts held or operated by you, a reconciliation of the bank or building society statement balance with the cash book balance and the client ledger total, a record of which must be signed off by the COFA or a manager of the firm. You should promptly investigate and resolve any differences shown by the reconciliation.” 

In practice, this means that your firm must: 

• Reconcile all client bank accounts (including general and designated client accounts) 

• Record who prepared and reviewed the reconciliation 

• Retain reconciliation records for at least six years 

The rules don’t prescribe the exact format, but they do make it clear that reconciling your records regularly and accurately is not optional. 

Why Client Account Reconciliation Matters 

Client account reconciliations are one of the most common areas for SRA audits and investigations. Failure to comply with the rules can result in: 

• Regulatory sanctions 

• Damage to your firm’s reputation 

• Increased risk of fraud or error 

• Serious breaches of client trust 

Regular reconciliations also give firms better visibility of client funds and cash flow, helping you to spot issues early and maintain good financial health. 

Common Challenges for Law Firms 

Many firms struggle with: 

• Keeping on top of reconciliations when managing multiple client ledgers 

• Lack of internal resources or oversight 

• Errors in manual processes 

• Falling behind during periods of high workload 

At Cashroom, we see these challenges daily and we’re here to help firms stay compliant, efficient, and stress-free. 

How Cashroom Can Help 

We support hundreds of law firms across the UK with fully outsourced legal cashiering and compliance services, including: 

• Accurate, on-time client account reconciliations 

• Real-time reporting and oversight 

• Compliance with all SRA Accounts Rules 

• Integration with leading legal software platforms like LEAP, Clio, and Actionstep 

• Support from qualified legal finance professionals 

By outsourcing your legal cashiering, you reduce risk, free up time, and ensure your firm always meets its regulatory obligations. 

Understanding and following the SRA rules for client account reconciliation is vital for any law firm. If you’re struggling to keep up or simply want peace of mind, Cashroom can give you the expert support you need. 

Need help staying compliant with the SRA Accounts Rules? 

Get in touch with Cashroom today to find out how our expert team can support your firm.