The demand for legal process outsourcing has gathered considerable pace in the past few years.  In the next decade, it is expected to become vital in enabling law firms and in-house legal departments to grapple with the challenge of delivering a competitive, efficient, safe, and innovative service to clients.

What is Legal Process Outsourcing?

Legal process outsourcing enables law firms and in-house legal departments to utilise the services of external specialists to perform specific legal functions on their behalf.  Services such as eDiscovery, client billing, legal cashiering, management accounts, contract drafting, document review, and compliance assistance are now commonly outsourced to third-party experts, rather than being undertaken in-house.  There are many reasons for doing so, including handling a sudden influx of work for which there is insufficient internal capacity, to reduce wage costs, to drive efficiency, and ensure compliance with the latest standards and best practice.

Focusing on core competence

Legal process outsourcing enables legal teams to focus on what they do best.  This is important as modern law firms have to be agile, allowing them to move in and out of legal markets as demand changes.  Traditionally, providing new service offerings may have necessitated the hiring of new resources, training, and the implementation of new systems and processes, but in the age of legal process outsourcing, law firms can now focus on their core competencies.

According to the Law Society, legal process outsourcing “can allow law firms more opportunities to offer a wider range of services to clients, potentially attracting a broader client base”.  And crucially, they say that legal process outsourcing “allows lawyers to concentrate on the task for which they are trained and paid, free from the inevitable bureaucracy that surrounds any legal service”.  This is a win-win for law firms as by freeing staff to perform higher-level functions, without becoming bogged down with paperwork and administration, not only will the client receive a better service, but the employee will be more fulfilled in their role.

Ready to hit the ground running

The best legal process outsourcing providers will not only have experienced staff ready to perform the function required of them, but they will also do so in a manner which ensures compliance with GDPR, and all other compliance requirements.  That said, it is essential that law firms and in-house legal departments engage external providers with the necessary skills, experience, and compliance credentials to undertake work on their behalf.  For example, if a third-party will be processing data on behalf of the law firm, it is vital that they do so in accordance with GDPR.  It is also important to ensure that the scope of the work, timescales, and delivery expectations are set and agreed, thereby avoiding any confusion or problems at a later date.

Finding trusted partners is key

New legal process outsourcing providers are launching each year, offering new services in innovative ways.  By engaging with a provider you can trust and building a long-term relationship, the boundaries between the different businesses become seamless.  As staff from the legal process outsourcing provider get to understand the processes and the slight nuances of the law firm they are assisting, work can be completed with even greater efficiency and in higher volume.

Final words

Legal outsourcing offers transformative benefits for small and medium-sized law firms trying to compete with the big players.  Not only will legal businesses be able to operate with smaller cost bases, and those costs be better controlled than wholly in-house resources (i.e. due to fixed pricing arrangements), they can operate in a much more agile manner, providing greater strategic flexibility.  Make 2020 the year your law firm starts to leverage the potential of legal process outsourcing.

If you are regulated within the English and Welsh markets, then please contact:
Alex Holt E: alex.holt@thecashroom.co.uk T: 07817 420 466

If you are regulated by the Law Society of Scotland, please contact:
Gregor Angus E: gregor.angus@thecashroom.co.uk T: 07875 598 593

Merely months after I left high school, I was determined to get straight into the business world and gain experience that would open doors anywhere I go. I applied to start as a junior for The Cashroom. Now, over seven years later, I am a qualified legal cashier in a team servicing 28 clients – still with The Cashroom.

On a daily basis, I am responsible for ensuring that our client’s books are up-to-date. This is achieved by ensuring all transactions from the previous day have been posted to the client’s Practice Management System (PMS). We would then do a bank reconciliation on the PMS using their bank statements. The bank reconciliation will highlight any omissions or errors. Oh, and our clients do not all use the same PMS. There are several large businesses in the UK which provide a wide range of different systems. Compared to an in-house cashier, this means that my colleagues and I must be able to use and adapt to these systems.

Once these daily tasks have been done, we then focus on queries from our clients and ensuring any ad-hoc tasks are completed. This can range from our regular compliance checks (credit balances not moved in two months for example) to preparing a purchase ledger payment run. Different practice management systems are not the only challenge that we face. Our clients work in various locations and practice different types of the Law.

We also deal with various projects outwith the general cashiering tasks. For example, one of our clients may decide to move from one PMS to another. These changes can provide a lot of benefits to our client, but the changeover is not a simple procedure. As the cashiers, we need to analyse the data on the current system and work with the new provider to ensure it is dealt with correctly on the new system.

Another example would be to assist with a Law Society inspection. Whilst most practice units keep the prospect of an inspection in mind, it’s not always at the top of the list. This can make an inspection notice a stressful process. It is our role as cashiers to provide all the reports that an inspector will need and to assist with any queries or issues raised during the inspection. This allows the practice unit and its staff to focus on their work.

But I am more than just a cashier! Over the years I have expanded into several areas of the business. I volunteered to help our Service Transition team, joined a steering group for The Cashroom’s own web-based Portal, organised our ambitious social committee with colleagues, and accepted a place in The Cashroom’s Future Leadership Programme.

No day at The Cashroom is the same as the last. One day I could be helping my team ensure that all our clients are being serviced with the highest quality of care. The next, I could be in and out of meeting with the Portal developers making sure we are always innovating and deploying new features for our colleagues and clients.

There is no satisfaction in staying in the same place. That is why I push my limits each day to expand my knowledge base. A example of this would be voluntarily undergoing training with some of the UK’s best-selling practice management system providers for example. Doing this allows me to do my daily cashiering work with full confidence and assist our clients to unlock their system’s full potential. You may not be surprised to hear, that’s not all the training I do, I also help train juniors who start the same way that I did over seven years ago. My experience in all the aforementioned areas, combined with my personal journey through the same route that they are on, guides our newer staff in the right direction.

As you can see, there are many different aspects to my role as a Legal Cashier at The Cashroom, and it is the variety and great experience I get from all of these that keep me motivated at work on a daily basis.

Kyle Stratton, Legal Cashier

The Cashroom Ltd

The importance of innovation and law firm efficiency cannot be overstated.

The profitability of any law firm is proportional to the amount of time it takes to complete the chargeable legal work completed.

With many legal services moving toward fixed fee pricing models there is additional pressure to ensure as much work as possible is completed with the minimum of demand on fee earners. That said, law firm efficiency must be balanced with the need to ensure work is completed thoroughly and to the required quality.  For Solicitor Regulation Authority (SRA) accredited Solicitors, this means they must adhere to the Accounting Rules, Principles, and Code of Conduct.

The vast opportunity of increased legal innovation and efficiency

According to Thomson Reuters Legal Executive Institute, there are huge opportunities to be realised by increasing law firm efficiency.  A 2019 survey of small law firms revealed that many faced a wide variety of “significant challenges”, in particular the excessive amount of time being expended on administrative tasks; accounting for up to 40% of the average lawyer’s time.  As such, law firms are now focused on improving efficiency through a wide variety of means.

Technology is underpinning the drive for legal efficiency

The need for law firm efficiency is one of the primary drivers towards the widespread adoption of digital technology, including artificial intelligence (AI), electronic discovery (eDiscovery), data analytics, and online client portals.

The law sector, both locally in the UK and internationally, is experiencing a considerable technological shift.  Organisations who have maintained many of the traits we know as “traditional law firms” are under pressure from new dynamic entities which are able to deliver legal services in a consistent, rapid, and high-quality manner, and still with high levels of customer service.  To do this, fee earners need to be freed up from onerous and time-consuming work which can now be completed by automation tools and software.

Leveraging external service offerings

Law firms are also realising the importance of law firm efficiency by freeing up resources to work on more complex and, ultimately, higher-value work.  In addition to technology, outsourcing of essential business services is enabling internal legal resources to focus on what they do best – practice law.  Small, medium, and large Solicitor practices are increasingly utilising the knowledge and skills of external business services, including cyber security specialists, IT, and financials (invoicing, legal cashiering, and management accounts).  Such is the demand for ‘as a service’ expertise (e.g. software as a service, marketing as a service), each year more and more providers are starting up, with most offering fix price monthly pricing.  This approach to law firm efficiency also reaps rewards by reducing the demand for office space, ensuring adherence to the latest standards and legislation, and reducing internal headcount and associated costs.

Final words

As we enter a new decade, Solicitors of all types and sizes are focusing on improving law firm efficiency.  Whether it be through process analysis and control, digital technology, and outsourcing of essential business functions, there will be two primary winners for those who are ultimately successful; Solicitors who can engage in more meaningful and high-value legal work (and of course law firms themselves), and their clients who will benefit from the extra time that can be spent focusing on their needs.  Increased law firm efficiency provides a win-win for all concerned.

Established for over 10 years, The Cashroom are experts in helping law firms become more efficient when it comes to cashiering, management accounts and payroll. With extensive experience in the legal sector our solutions are tailored to the needs of the changing legal landscape.

Our investment in our products and services means we help to improve efficiency and security beyond the capability of many law firms.

For an introductory discussion please contact a member of our team.

If you are regulated within the English and Welsh markets, then please contact:
Alex Holt E: alex.holt@thecashroom.co.uk T: 07817 420 466

If you are regulated by the Law Society of Scotland, please contact:
Gregor Angus E: gregor.angus@thecashroom.co.uk T: 07875 598 593

The EU’s General Data Protection Regulations (GDPR), which were enacted into UK law by the Data Protection Act 2018 (DPA), place strict requirements on law firm data security.  While the GDPR relates to any business using personal data within the EU, given that law firms are required to handle often highly sensitive personal information, they must go the extra mile to mitigate any potential risk to their clients.

Data controllers vs data processors

Core to understanding law firm data security obligations in the context of the GDPR is interpreting the terminology used.  Firstly, both data controllers and data processors are required to adhere to GDPR.

According to the UK’s Information Commissioner’s Office (ICO), data controllers are defined as any “natural or legal person, public authority, agency or other body which, alone or jointly with others, determines the purposes and means of the processing of personal data”.  And data processors are any “natural or legal person, public authority, agency or other body which processes personal data on behalf of the controller”.  In other words, the controller determines what information should be processed and for which purposes, whereas the processor undertakes the actual processing work.

As such, law firms may find themselves acting in both roles.  As confirmed by the law society, however, law firms assessing their law firm data security should not just assume they are acting in the role of data processor when they may not be.  For example, for a law firm undertaking electronic discovery in-house, it is likely they would need to conform to the GDPR rules for both controller and processor.  If discovery is being contracted to a third party, it is likely the external entity would be classed a processor and the law firm would be the controller.  The European Data Protection Board provides some useful information to make this decision.

Seeking assurances from third party data processors

When assessing law firm data security risks where third parties are used to process data on behalf of the controller, it is essential to ensure that the processor is able to comply with their legal obligations under GDPR – this should not just be assumed.  Failure to verify this could lead to a ‘supply chain compromise’ whereby the third party fails to adequately secure the IT systems that hold your (and your clients) data.

The National Cyber Security Centre (NCSC) states that a vulnerable data supply chain can be avoided by adhering to its principles, under the following categories:

• Understanding the risks
• Establishing control
• Checking your arrangements
• Continuous improvement

For example, the NCSC recommend that where necessary, data controllers may wish to use the Centre for Protection of National Infrastructure (CPNI’s) Personnel Security Maturity Model to assess the effectiveness of their people security arrangements.  While this may seem onerous, to fully ensure law firm data security, it may be the only way to mitigate any risks fully.

Wrapping up

It is critical then that law firms take their responsibilities seriously, especially considering the financial penalties and reputational damage which may be levied for non-compliance.

To prevent “supply chain compromise” ensure you work with organisations who have a similarly transparent and compliant approach to data protection and proactively demonstrate this to you, providing you with full assurance for your law firm and your clients.

The Cashroom understands the potential pitfalls of data security. We take data security and protection seriously. To find out more about our approach to data security have a read of our recent blog here.

We’re happy to share our experience with our clients and our own data protection policy is available online here.

The Cashroom helps law firms stay on the right side of compliance, whether it be GDPR, data security and SRA or Law Society of Scotland Accounts rules.

We bring our extensive experience in the legal sector to you, whether you are looking for outsourced cashiering, help with the production of management accounts, or support with your payroll.

For an introductory discussion please contact a member of our team.

If you are regulated within the English and Welsh markets, then please contact:
Alex Holt E: alex.holt@thecashroom.co.uk T: 07817 420 466

If you are regulated by the Law Society of Scotland, please contact:
Gregor Angus E: gregor.angus@thecashroom.co.uk T: 07875 598 593

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In a leafy part of England a merry band of 70 suppliers of services to the legal sector gathered for the LSAS conference. It’s an annual event at which ideas are shared, contacts are made, and the occasional sherry is supped.

A theme emerged from the numerous excellent talks throughout the day…

The need for any sale of services to be a win for both parties.

It seems obvious doesn’t it? Yet when you think about it, often one or other of the parties comes away feeling not quite so happy. Either the client feels they’ve paid too much, or the suppliers feel they’ve been talked down on price. Perhaps the issue is the financial one.

After all, the cost of something is always relative to the worth it represents to the buyer, isn’t it?

So it’s crucial that a supplier takes the time to really understand their prospective customer- the needs of the firm, but also the requirements of the individuals within the firm who will be interacting with the product or service. A panel of senior people from law firms was gently grilled by Chris Bull, Legal Sector Consultant and it was slightly depressing to hear that often suppliers don’t think about who they will be talking to when they make contact. We were told in no uncertain terms that a call from a supplier who hasn’t taken the time to research the firm and the individual contact will receive a much cooler reception.

Crucially, the ‘buyer’ is often not the firm. It’s the individual for whom you will be solving a problem, or fulfilling a need. What do they need from you so that they can be convinced themselves, and what do they need so that they can take information and convince any other influential people within their firm? By treating each sales engagement as a collaborative process, and acting with respect and integrity throughout (essential elements for any relationship to work), the benefits to the individuals and the firm can be drawn out and supported, making the discussion around price a far more involved negotiation as the dialogue is now around a value proposition.

The final shift over the line to a sale is often, we were told, the vital addition to the conversation of stories. Case studies. Testimonials. Existing happy clients or buyers. Real people who have experienced your products and services and will speak glowingly of the benefits. They take the ideas and lists of promises from conceptual to real.

Coming away from a conference like this with more than just a headache is always welcome…on this occasion invaluable ideas were as plentiful as the wine.

Alex Holt, Business Development Director

The Cashroom Ltd

I’m no psychologist. So you’ll be delighted to hear that the ideas I’m about to put forward are not my own, but those of far more learned proponents of the science.

When engaging with your prospective clients, do you understand what their present state of mind is?

There are three modes that you should consider-

OK or Even Keel – This is when your prospective clients are basically happy with their lot. It does not mean they are not a potential buyer, just that they don’t perceive an urgent need for what you’re selling. With this kind of client, it’s important to stay in communication. Keep them informed of your services and products. Make them aware of the benefits of working with you. But don’t in any way go for the hard sell. You want to be in their mind when they move into one of the other two modes.

Fear or Problem – this is often the mode in which clients of law firms find themselves. Litigation. Divorce. Bereavement. Classic reasons for needing a lawyer. At the point when your prospective client is considering your services are you thinking about their state of mind? Are you shaping your products and messages to appeal to someone who is probably stressed and worried? Are you responsive and communicative?

Hope or Aspiration – these clients are a different challenge. Perhaps they are growing a business or trying to do deals. They have a big idea and they are buying your services as part of a strategic plan. You will need to convince them you can match their requirements and ambitions with a service that enables them to achieve their goals. Should you consider a more project based approach to deliver your services in alignment with the client’s timescales, and should that lead to a slightly different discussion around pricing?

It sounds so simple, yet so many sellers of services or products fail to put themselves in the shoes of their customer or client. What is the end goal they are trying to achieve when they consider your service? A conveyancing transaction is not how your client looks at it- for them it’s a move, against a removal deadline, into their new home. A litigation matter is not an intellectual challenge- for your client it is a stressful and unwanted expense. Your approach and manner of client handling should reflect such differences.

Alex Holt, Business Development Director

The Cashroom Ltd

When looking for a new product or service, conducting research is vital to ensure not only that you get value for money, but also you can enjoy the best experience possible by finding the provider most suitable for your specific needs.

Whether you are searching for a hotel, holiday destinations, the latest gadgets or kitchen appliances, you need to do your research, and the same is true for legal cashiering services.

So, what things should you consider when looking for a legal cashiering service?

Consider a providers reputation. Speak to current customers and read testimonials or case studies on their website. However, a company isn’t only judged on the service it provides to current customers, but how it deals with customers who wish to leave. Enquiring about this will give you the whole client experience. Plus, an ex-client can give you the honest answers about how professional the outsourcing company is when it comes to separating and terminating the contract.

Can the company work with your current set-up/practice management system? The last thing you want is to find out you have to spend a small fortune implementing new systems in order for the outsourced legal cashiering to work. The Cashroom has a totally system agnostic approach, meaning that firms don’t have to change their systems before benefiting from the service.

Another factor to consider is how quickly the set up can be up and running, reducing the impact it has on your firm. The Cashroom’s legal cashiering service hits the ground running by getting set up quickly with no downtime or disruption.

Ask questions around your contract. Find out if you’re tied in for a period of time, have early repayment charges if you decide to leave etc. But also find out who ‘owns’ and houses the financial data, and the implications of retrieving this if the contract is terminated. Ironing these terms out at the beginning of your relationship is crucial to ensure the smooth running of the legal cashiering service.

Establish who will manage your account and be your specific point of contact. The last thing you want is to be pushed around from pillar to post if you need to speak to someone about an issue that needs resolving asap.

Maintaining compliance with regulators as well as providing a high-quality service should be the top priorities for your outsourcer. Here at The Cashroom we don’t just have a grasp of accounts, our cashiers also possess appropriate qualifications and an in-depth understanding of regulation rules, for example, the Solicitors Regulation Authority (SRA) Handbook, SRA Account Rules, The Law Society of Scotland Account Rules etc. Also, it’s vital to ensure the outsourcer can explain/show how they adhere to data protection regulations, such as GDPR. Again, this should be set out in detail in the Contract.

It’s no secret that law firms are a particular target for cyber criminals, so it’s imperative to find out what defences an outsourced legal cashiering firm have in place.. At The Cashroom, we offer a secure end to end encrypted online portal to allow internal and external stakeholders to communicate and share information. We also hold an industry leading Cyber Essentials Plus Certification.

Communication is key in any relationship with an outsourcer. So, establishing how you can remain in contact with them is vital. At The Cashroom, we provide an online portal, eliminating email and enabling everyone to know where tasks are up to. All requests are clearly tracked and monitored and can easily show an audit trail if required.  Having a clear and concise system, helps to ensure deadlines are adhered to and communication is clear for all concerned.

Finally, if you’re considering outsourcing other areas of your firm, it may be worthwhile to see if your outsourcer provides these services as well. This will help to streamline your processes and ensure you’re only managing one supplier. Here at The Cashroom, as well as providing legal cashiering, we also offer management accounts, payroll services, and compliance and efficiency audit reviews / support to law firms across the UK.

If this blog has whet your appetite, and you’re intrigued to learn more about the services The Cashroom could provide, or you’d just like to ask a few questions, please contact us.

Our contact details can be found below.

If you are regulated within the English and Welsh markets, then please contact:
Alex Holt E: alex.holt@thecashroom.co.uk T: 07817 420 466

If you are regulated by the Law Society of Scotland, please contact:
Gregor Angus E: gregor.angus@thecashroom.co.uk T: 07875 598 593

Overwhelmed? Mind racing? Can’t sleep? Life in the law can be challenging and sometimes things can get on top of you. Talk to us – we’ve been there.

Law is by nature competitive and adversarial and the heavy workload begins when studying or training to be a lawyer.  There are high levels of negative emotions within law: the work is often about winning or losing requiring legal professionals to be critical, judgemental, combative and aggressive. You are required to think pessimistically, looking for potential problems and worse-case scenarios. In addition, many lawyers are perfectionists who fear failure and making mistakes. All of this can significantly affect mental health and wellbeing.

LawCare is an independent charity offering emotional support, information and training to the legal community in the UK and Ireland. We work to promote good mental health and wellbeing in legal workplaces and drive change in education, training and practice.  We’ve been supporting legal professionals for over 20 years and no-one knows lawyers like we do.

Our free and confidential support service offers a safe place to talk without judgement. We’re here to help, with helpline calls, emails and webchats answered in confidence by trained staff and volunteers who have first-hand experience of working in the law. We also have a network of peer supporters, people who work in the legal profession who may have been through difficult times themselves and can offer one-to-one support, friendship and mentoring to helpline callers referred to them.

We have visited hundreds of legal workplaces over the years and we have listened to thousands of legal professionals tell us about the stress, anxiety and depression they are experiencing, which is often caused or exacerbated by a difficult working environment. Lack of support or supervision, an overly critical manager, being undermined after a career break, an unreasonably heavy workload, long hours and sleep deprivation are all very common issues.

Whether you’re a barrister feeling burnt out, a young trainee experiencing sexual harassment, a student struggling with the workload, support staff worrying about a mistake you’ve made, a senior lawyer feeling like you’re  being pushed out  – we’re here to listen.

We are here to help all branches of the legal profession: solicitors, barristers, barrister’s clerks, judges, legal executives, paralegals, trade mark attorneys, patent agents, costs lawyers and their staff and families.

LawCare was founded by the legal profession in 1997, primarily to support lawyers who were experiencing issues with alcohol, giving them a space to talk about their problems in confidence. We now cover a range of issues, ranging from stress to depression to anxiety to bullying at work.

We have witnessed significant growth and change in the legal profession over the last two decades, as organisations started to embrace the mental health agenda and recognised the need to look after those who need support with mental health issues. Momentum around mental health and wellbeing in the legal community has been particularly growing in the last few years, with many firms now rolling out wellbeing initiatives and providing training to staff in this area. Firms need to do their best to create a healthy and happy place to work, not just because it is the right thing to do but because there is a strong proven business case for it.

If you need emotional support call our helpline on 0800 279 6888 or access webchat, email support, peer support, information, resources and factsheets at www.lawcare.org.uk.