As we step into 2024, law firms are presented with new challenges and opportunities that demand a fresh approach. The demand for law firms to embrace new technology is stronger than ever and it is crucial for law firms to acknowledge the need to adapt. So, why is it so important for your firm to embrace and utilise new technologies?  

Modernising operations 

Time is a precious commodity, incorporating modern technology can improve the effectiveness of legal operations. Making use of case management software, automation tools, and AI-driven solutions, legal professionals can simplify their workflows, decrease the amount of time spent on administrative duties, and concentrate on the intricacies of their cases.  

With the help of technology, legal teams can now collaborate effortlessly across long distances, breaking down geographical barriers. By utilising cloud-based solutions and virtual collaboration tools, law firms can not only embrace the worldwide trend of remote work but also establish themselves as agile and adaptable players on a bigger stage. 

Law firms using legal tech solutions to keep up with regulatory changes, can minimise potential risks while ensuring compliance. Maintaining technological vigilance is crucial for upholding the integrity of legal practice. Law firms can modernise their operations by embracing new technology which can lead to substantial cost savings, enabling law firms to deliver high value services without any unnecessary financial strains. 

Innovation that focuses on the needs of clients  

The demands of UK clients and consumers are changing, requiring law firms to adapt and provide a more advanced and technology-focused legal experience. By incorporating client portals, secure communication platforms, and real-time updates using legal tech solutions, law firms can not only improve client satisfaction but also establish themselves as a contemporary and reliable partner for clients in their legal affairs. 

Making the Most of Data Strategically 

Unlocking the strategic potential of legal data with data analytics tools enables law firms to extract valuable insights, spot trends, and make well-informed decisions. This capability is especially vital when navigating the complex and constantly evolving landscape of law. These tools assist in managing costs, optimising operations, and budgeting by combining AI (Artificial Intelligence) technology with industry insights, allowing for more informed decision making.  

Ensuring Regulatory Compliance 

The UK legal sector operates within a framework of stringent regulatory requirements. Leveraging legal tech solutions assists law firms in stay compliant with regulatory changes and mitigating the risks associated with non-compliance. This technological vigilance is essential for maintaining the integrity of legal practice. 

Enhanced Competitive Positioning 

In a fiercely competitive sector, incorporating innovative technology sets law firms apart from the rest. By embracing technological innovation, UK law firms not only show their dedication to leading the way but also draw in clients and legal professionals seeking a forward-thinking partner. 

It is undeniable that those law firms who utilise technology are staying ahead, choosing to embrace technology is not just a reaction to change; it is a proactive decision to take the lead, innovate and excel. As the industry becomes more competitive and continues to evolve, embracing new technologies becomes more than just a strategy, it becomes a necessity for success for the law firm of tomorrow.  

Cashroom develops technology to revolutionise legal accounting for law firms  

You may have seen that we have recently launched a Confirmation of Payee function within our client portal, becoming the first supplier to provide this level of technology to further increase efficiencies, ensure compliance and reduce risk for our clients. You can read more about this brand-new feature here.  

If you are an existing client and interested in supporting us in our final testing stages, please contact us by filling in the form below:

It’s been another busy and exciting year for Cashroom, with new technology launches, various events and an exciting award win. As we come to the end of another year, it’s a great time to look back at the years success, where we can make improvements  and begin looking forward into a new year, a new start and new goals.  

Key highlights from 2023:  

Developing New Technology  

This year our dedicated engineering team have released and integrated TWO industry firsts. Firstly, earlier in the year we were able to introduce Open Banking technology into our client portal, providing a more streamlined process for cashiers and clients by creating a link between our client portal and the bank. This allowed Cashroom cashiers to access transactions directly, without the need to log into the banking platform each time. Giving us the capacity to speed up incoming funds response times for our clients. This has proven a huge benefit for all our clients, and in particular, our conveyancing clients who have been able to reduce delays in completion chains.  

In addition, we recently launched our revolutionary Confirmation of Payee feature which will be rolled out to all clients early next year. As another exciting first for the industry, Confirmation of Payee ensures that payee’s banking information is verified at the very beginning of the payment process, preventing future delays or misdirected payments due to incorrect details.  

At Cashroom, we are constantly striving to innovate our services, through utilising technology to introduce new solutions that cater to the individual requirements of our law firm clients. We are revolutionising Legal Accounting.  

Read more about our Open Banking here.

Support Team of the Year  

We were proud to bring home the trophy for Support Team of the Year at this year’s Scottish Legal Awards. This was an incredible achievement and a true reflection of the hard work and dedication of our service teams, who, on a daily basis, go beyond to provide first class support to our clients. To receive the recognition for our hard work and efforts at such prestigious awards is something we are very proud of. From the technology that powers our service, our training academy, our operational and HR teams to our frontline service teams and absolutely everyone in between, this award is an achievement for everyone at Cashroom.  

Our CEO, Chris O’Day said “We won this award back in 2014 and since then the company has grown, our service has improved, our technology has evolved, and our teams continue to grow. The level of talent and quality of the nominees in the room always serves as a reminder to Cashroom of why we provide the services we do to support law firms in Scotland and across the UK. Whilst we have some huge ambitions and work in the pipeline this award serves as a great reminder to look back and appreciate and recognise what we as a company have achieved so far. It’s an exciting time for Cashroom.”  

We were also highly commended at this year’s British Wills and Probate awards for Best Use of Technology. A huge success for our engineering team for the work they put into making our client portal more efficient and innovative to support compliance and reduce risk for law firms.  

Networking Heights  

We had the pleasure of being involved in a range of industry events this year, including Law Firm Ambitions inaugural in-person conference, which as founding partners, we were proud to be a part of and we can say with confidence that it was a huge success. There are too many to mention but it has been great to speak to so many of our clients and industry friends on the road this year and hear about new accomplishments and share advice as we all navigate the complex legal sector.  

The Legal Sector really does always come together to support one another and it is great to be involved in so many prestigious events and we are already looking forward to next year!  

Client Successes 

We are grateful to have expanded our client base again this year and support the legal industry in reducing risk, ensuring compliance and increasing efficiencies in their firms. By providing tailored solutions and our expert team of cashiers and accountants we have been able to help many of our clients achieve their own financial goals this year.  

“As a result of partnering with Cashroom we can now grow our business at a faster pace, with the knowledge that our finance function is in safe hands.” Phil Ryan, Director, Cheval Legal 

Team Growth 

This year we have had a core focus on our people – the amazing team of legal accounting experts at Cashroom. In a hybrid working world we understand the importance of employee empowerment and fostering a culture of collaboration, continuous learning and personal development. We have had numerous promotions; new qualifications and our Cashroom Academy has had a 97% completion rate across the year on all of our in-house training courses. As we continue our partnership with ILFM, we have seen a significant increase this year in staff progressing through their ILFM qualifications. These investments in our team mean we can continue to provide an industry best service to our valued clients.    

Looking Ahead to 2024 

As we look forward to 2024, we are excited to continue to improve our technology and service even more through innovative developments and nurturing our people to continue revolutionising legal accounting for law firms. We have some big goals and exciting things on the horizon, and we can’t wait to get started and share them with you.  

To keep up to date with all of the latest news and updates from Cashroom, you can sign up to our monthly newsletter here.

What are you goals for 2024?  

Now is a time when a lot of us begin looking at our goals for next year and how we will achieve them.  

If your law firm is looking to outsource your finance function next year, get in touch with our team. We have limited consultancy calls available in January so if you are considering outsourcing your finance function or looking to save costs, increase efficiency and resource or ensure compliance for your firm, book in for a confidential call with our friendly team.  

Marking a significant milestone in the legal sector, Cashroom confirms the launch of Confirmation of Payee into their client portal. This development is a first in the legal industry with the revolutionary Confirmation of Payee feature at the forefront of the payment process with Cashroom, who become the first supplier to be able to offer this feature to increase security and efficiency for law firms. All Cashroom clients will have access to this feature in 2024.  

Confirmation of Payee (CoP) is a security feature used in financial transactions to verify that the payee’s name matches the information held by the payer’s bank. It is designed to prevent payments from being sent to the wrong account or to fraudulent individuals or entities. 

The majority of people will be aware of what Confirmation of Payee checks are. We are all beginning to see these checks daily on our own personal banking apps when sending money and the technology and process Cashroom have created works in a very similar way. The difference being CoP at Cashroom has been designed specifically for law firms to support a streamlined and efficient accounting process. 

When a payer initiates a payment, the bank or financial institution uses the Confirmation of Payee system to check whether the name provided by the payer matches the name associated with the account details provided by the payee. If there is a mismatch or if the payee’s name cannot be verified, the payer may be alerted to the potential discrepancy, allowing them to verify the details and avoid making an erroneous payment. 

Confirmation of Payee is particularly valuable in preventing certain types of fraud, such as authorized push payment (APP) scams, where individuals are tricked into transferring money to fraudulent accounts. By confirming the payee’s identity before processing the payment, CoP adds an extra layer of security to financial transactions. 

The banks already do this, so what is the benefit Cashroom clients will have? 

By utilizing Cashroom for Confirmation of Payee checks, law firms can eliminate last-minute delays. Currently, these checks are conducted at the bank as a crucial final step in the payment process. However, performing these checks at such a late stage often leads to frustration and setbacks for both law firms and their clients when there are errors or mistakes found. These issues can be as simple as someone changing their bank account. By conducting these checks at the beginning of the process, potential problems can be identified early on. For instance, in conveyancing chains, completing these checks before the final stages of completion ensures a seamless completion day and provides peace of mind that transactions are ready to proceed. This approach avoids potential delays and prevents clients from waiting on a driveway for a payment to be received. 

This innovative feature empowers Cashroom clients to effortlessly validate payee names against the sort code and account number when initiating payments through the Cashroom portal. Say goodbye to disruptions and delays caused by inaccurate payment details when uploading to the bank. With the powerful Confirmation of Payee, Cashroom clients can now rest assured knowing that any errors will be promptly detected right from the beginning of the payment process, ultimately saving them valuable time and eliminating unnecessary stress. 

Cashroom are currently in the final stages of development and are actively seeking clients to join them in their exclusive BETA testing stages and become part of the testing team. If you are interested in being part of this exciting opportunity as BETA tester, please reach out to Cashroom.  

“I’m delighted we have been able to launch this exciting new feature in our platform. This powerful functionality enables our clients to validate payee names against the sort code and account number when setting up payments through the Cashroom portal at the very beginning of the process. In addition to the obvious security and efficiency benefits this feature brings, this feature offers significant benefits in reducing delays in payment processes and eliminates incorrect payments, protecting firms and their clients. Our engineering team at Cashroom are constantly working to innovate and build secure, efficient and risk avoidant features to help our clients ensure compliance and this ground breaking new feature is the latest in a line of integrations as we continue to revolutionise legal accounting.” 

Paul O’Day, Chief Technology Officer, Cashroom

This remarkable feature will be available to all clients in 2024. Make sure to stay tuned for more updates in the new year from Cashroom.  

To succeed and grow your law firm, the ability to manage resources effectively is key. Resource planning is a strategic process that involves allocating and optimising people, technology and finances. Resource planning helps to ensure the seamless operation of your firm.  

One key area where strategic resource planning can make a profound difference is in the management of your financial function. As law firms grapple with complex cases, client demands and regulatory changes, the decision to outsource finance functions can be a game changing strategy for both effective resource allocation and access to real time management information. At Cashroom, our team of experts include ILFM/SOLAS qualified Cashiers, Chartered Accountants and Solicitors, bringing extensive experience and expertise to your firm. We work as an extension of our clients’ firm, providing efficient, compliant and secure cashiering, management accounting, payroll services and more.  

The Challenges of In-House Financial Management  

Running an in-house finance department within a law firm can present several challenges. Legal professionals are often tasked with navigating intricate cases, meeting tight deadlines, and staying abreast of ever-changing regulations. Managing day-to-day financial operations becomes an additional burden, diverting valuable time and energy away from core legal activities.  

In addition, hiring and retaining skilled finance professionals can be a daunting task. Financial management of law firms demands a unique set of skills and expertise, which may not be readily available or cost-effective to maintain in-house. This is where outsourcing your firms finance function presents a solution.  

Streamlining Operations through Outsourcing  

Outsourcing finance tasks to a specialised service provider, such as Cashroom, offers law firms a strategic advantage. Cashroom brings a wealth of experience combined with cutting edge technology to provide an industry ‘best practice’ service to over 250 clients across the UK. In turn, relieving firms of the complexities associated with in-house financial management. At Cashroom, we work with each client on a bespoke basis, providing as much support as required, we can either take on the whole finance function or provide support to your existing in-house team. The benefits remain the same whichever approach a firm takes.  

• Focus on Core Competencies  

By outsourcing financial tasks, law firms can redirect their focus on core legal activities. Fee earners can concentrate on delivering high-quality legal services, knowing that the finances in the firm are in capable hands. This not only enhances overall productivity but also contributes to improved client satisfaction.  

• Efficiency and Accuracy  

Specialised finance providers leverage advanced technologies to automate and streamline financial processes. This not only reduces the risk of errors but also ensures that financial tasks are completed with greater speed and accuracy.  

• Cost Savings  

Outsourcing your firms finance function can lead to substantial cost savings. Law firms can avoid the expenses associated with hiring and training in-house finance professionals, as well as investing in the latest financial technologies. The cost-effectiveness enables firms to allocate resources more strategically, investing in areas that directly contribute to their own service offering.  

• Scalability  

As law firms experience fluctuations in workload, outsourcing provides a scalable solution. Whether dealing with a surge in transactions during busy periods or scaling back during slower months, outsourcing partners can adjust their services to meet the firms’ evolving needs.  

Implementing Effective Resource Planning Strategies 

As well as outsourcing functions such as finance management, to ensure your firm is constantly making the most of its people, it’s important to implement effective resource planning strategies. 

• Conduct Regular Assessments: Regularly assess the skills, strengths, and workload of your team members. Identify areas that may need additional support or training. 
• Invest in Training and Development: Foster a culture of continuous learning. Investing in training and development ensures that your team stays abreast of legal developments and technology trends. 
• Utilize Technology Wisely: Leverage technology to automate repetitive tasks, streamline workflows, and enhance collaboration. This not only boosts efficiency but also frees up time for more strategic endeavours. 
• Monitor and Adjust: Resource planning is an ongoing process. Regularly monitor your strategies, assess their effectiveness, and be willing to adjust as needed. 

Embracing the Future with Outsourced Finance Functions 

Adaptability and efficiency are paramount for law firms, they must leverage every available advantage. Embracing a strategic approach to resource planning allows law firms to position themselves at the forefront of innovation and excellence as well as supporting continuous growth. The correct resource allocation of staff, technology and financial resources allows law firms to navigate the complexities of a modern-day law firm more effectively, stay ahead of the competition and deliver exceptional value to clients. 

Contact us to find out more about Cashroom

E: info@thecashroom.co.uk 

P: 01695 550950 

Twenty of the UK’s most reputable suppliers to the legal sector have joined to exercise their vocal talents while raising money for charity by releasing a charity Christmas song.

The Legal Suppliers Chorus is the brainchild of Tom Bailey, managing director of Post Partner, and sees the businesses get together to write, play and sing spoof songs. The Chorus’ first release is a cover of Foo Fighters hit, Times Like These, and will raise funds for The Conveyancing Foundation – a zero-profit registered charity whose purpose is to enhance the lives of those in the conveyancing industry and support fundraising initiatives.

Alongside Tom, the track will feature suppliers, including Armalytix, Best Practice, Bold Legal Group, Cashroom, Ezescan, inCase, IQ Legal Training, Jim Wilson Voice, Legal RSS, Legl, LexRex Communications, Martello App, Minerva, NuForms, Orion Legal Marketing, PEXA, Post Partner, Ricoh and TM Group.

The tongue-in-cheek lyrics explore the trials and tribulations of life in the legal industry.

Speaking of the release, Tom said: “The legal industry is renowned for its ability to both work hard and, when appropriate, let its collective hair down. Its suppliers are no different, and after what has been a tough year in the sector, particularly for those in property and conveyancing, we’re pleased to be raising some money and hopefully a few smiles to round off 2023.”

Funds raised for The Conveyancing Foundation will be donated to several different charities and causes and will contribute to the Foundation’s efforts to support the well-being of those working within the sector.

Lloyd Davies, Managing Director at Convey Law and Chairman of the Conveyancing Foundation, commented: “We endeavour to enhance the lives of those in the property industry and to promote and assist with charity fundraising to help those that need our support.

“Protecting mental health and promoting well-being is a major focus for us; everyone knows that music is a healer. The Legal Suppliers Chorus is a fantastic idea, and having seen the video, I know it’ll provide some welcome entertainment as firms gear up for the Christmas break. We’re very thankful to have been chosen as the charity partner and look forward to the Chorus’ next songs.”

Watch the video here

Donate & Subscribe here

Contact us to find out more about Cashroom

E: info@thecashroom.co.uk 

P: 01695 550950 

The Conveyancing Foundation are pleased to announce Cashroom as their latest Charity Partner.

The Cashroom are market leaders in Legal Accounting for the past 15 years, helping law firms in the UK by offering cost-effective outsourced financial services. With over 140 specialists based in Edinburgh and Manchester, they assist more than 250 law firms remotely.

The Conveyancing Foundation has raised over £1 million for charity since its launch in 2010, which has helped to support deserving causes and charities of all sizes, including Great Ormond Street Hospital Children’s Charity, Velindre Cancer Centre in Cardiff, the Wallich (homelessness charity in South Wales), Tŷ Hafan Children’s Hospice, and Alzheimer’s Research UK.

As an official partner of the Foundation, Cashroom will join with others in the industry in leading the way in setting wellbeing standards and best practices. It will support the aims of the Foundation, including backing and promoting its work with initiatives such as its successful national ‘Be Kind We Care’ (BKWC) best practice campaign to encourage kindness among professionals and promote better mental health through the provision of practical resources.

PEXA will also become a partner of the Foundation’s new Charity Grant Scheme, which was launched at the beginning of 2023, where individuals and businesses in the conveyancing sector can apply for charity funding to supplement a worthy initiative they are supporting.

Emma O’Day from The Cashroom expressed the organisation’s joy in establishing an official partnership with the Conveyancing Foundation. She commended the Foundation for its innovative efforts in highlighting mental health issues within industry discussions and its impressive charitable fundraising initiatives.

She said: “In joining forces with the Conveyancing Foundation, The Cashroom is thrilled to engage in a collaborative effort with industry peers, spearheading the establishment of wellbeing standards and best practices.”

The new Conveyancing Foundation’s Charity Grant Scheme will award up to £2000 to individuals or organisations from within the conveyancing industry who are fundraising for their chosen charities.

Meanwhile, the Conveyancing Foundation plans for 2024 include further research into wellbeing and best practice through it’s second survey titled, ‘Conveyancer Capacities’, set to release in January 2024. This will be followed by round-the-table expert webinars to dissect the survey findings and to develop blueprints for what constitutes industry best practice.

Lloyd Davies, the Chairman of the Conveyancing Foundation, said “The Conveyancing Foundation, dedicated to extensive fundraising for important causes, supports the property industry through initiatives like the Charity Lotto and Charity Grant Scheme. Our vision prioritises well-being in the industry and efficient charitable fundraising. Welcoming Cashroom as a partner, an influential organisation in the industry, who will enhance our ability to achieve these goals. Together, we aim to elevate industry support and give back to those in need!”

The Conveyancing Foundation are looking to welcome new partners in 2024, for more information, please email info@conveyancingfoundation.org.uk or visit www.conveyancingfoundation.org.uk/partners/ . The Foundation is a Zero profit organisation, with every penny going to charity or to promote the wellbeing of those in the conveyancing industry.

The foundation sends thanks to its charity partners and media partners; tmgroup, Groundsure, The Society Of Licensed Conveyancers, LEAP, Morale Solutions, Today’s Media, Bold Legal Group, Property Reporter, Estate Agent Today, The Negotiator , Law Care, Property Conveyancing Consultancy, Orion Legal Marketing, PEXA and Cashroom.

Contact us to find out more about Cashroom

E: info@thecashroom.co.uk 

P: 01695 550950 

In today’s digital age, where information is readily available and online interactions are the norm, a law firm’s reputation is crucial in attracting and retaining clients. One powerful tool that can greatly enhance a law firm’s credibility is social proof. Testimonials, reviews, and endorsements act as a game-changer for law firms looking to build trust and establish a strong online presence. 

Why is building trust so important?  

Trust is fundamental in the client-law firm relationship as it establishes a sense of security, ensures effective communication, and forms the basis for a successful and enduring partnership. It is a critical element that underlies every interaction and transaction in the legal profession. Social proof acts as a tangible demonstration of a law firm’s competence and reliability and helps build trust between clients and a law firm. Trust truly is the foundation for building long-term relationships between clients and law firms. As well as obtaining the initial work, repeat business and referrals often stem from a positive and trusting initial experience. 

1 – Strengthening Online Presence: 

The strength of a law firm’s online presence is key to attracting potential clients in this digital age. Social proof, whether in the form of client testimonials on a firm’s website or positive reviews on online platforms, contributes significantly to a firm’s online credibility. Inviting your clients to leave reviews on multiple platforms, such as Trust Pilot and Review Solicitors, in addition to Google, will help your firm be more visible and allow you to highlight your positive work to a larger audience. Positive reviews and testimonials can also improve a law firm’s search engine rankings, enhancing the firm’s visibility in online searches. Publishing client testimonials is another way law firms can build trust with new clients. By reading the testimonials from previous clients who have had positive experiences with a law firm’s work, provides confidence in the firm’s expertise, professionalism, and ability to deliver the wanted outcome. Seeing how others have had positive experiences is a great indication of a law firm’s capabilities. 

2 – Differentiation in a Competitive Market: 

The legal industry is highly competitive, and potential clients often face an abundance of choices when seeking legal representation. Social proof provides a unique way for law firms to differentiate themselves from their competitors. When a firm can provide a track record of satisfied clients and successful cases, it stands out as a trustworthy and reliable option. Clients are more likely to choose a law firm that has a proven history of delivering positive outcomes for others in similar situations. By highlighting success stories and positive experiences through case studies and blogs, a law firm can position itself as a top choice in a crowded market. Understanding your target market and writing specific articles associated with your firm’s expertise will help your ranking when potential clients are searching for a niche service.  

3 – Humanising the Firm: 

Testimonials and reviews can provide a personal touch to a law firm’s online presence. These often include stories and anecdotes that make the firm more approachable to potential clients, breaking down any barriers and creating a human connection. People buy people – as well as having a social presence for your firm, having your lawyers and fee earners in front of people, and making use of social media platforms like LinkedIn and Facebook, helps to break down any barriers allowing a law firm to become more than just a business – it becomes a trusted partner in navigating legal challenges. 

Conclusion: 

In an era where online reputation and trust are paramount, social proof emerges as a crucial asset for law firms. By leveraging positive client experiences, testimonials, and reviews, law firms establish trust, enhance their online presence, stand apart from their competitors, and make their brand more relatable. In a world where perception is reality, social proof has the power to transform a law firm’s reputation, contributing to its long-term success. 

Chat with our team to discover how Cashroom can take care of your finance function, freeing up your time so you can focus more on building your firm’s brand. 

E: info@thecashroom.co.uk 

P: 01695 550950 

Law firms are often associated with legal expertise and courtroom battles, but behind the scenes, they function as complex businesses that require effective financial management. In today’s fast-paced and competitive legal industry, understanding the importance of financial management in law firms is essential for long-term success.  

Firms who pro-actively manage their finances and accounts are staying ahead and ensuring resilience and relevance for their firm.  

There are many ways in which financial management is crucial for law firms, from resource and cash flow to strategic planning. Here are a few reasons why financial management for your law firm should be top of your agenda. 

•  Efficient Resource Allocation 

Finance management in law firms involves budgeting and allocating resources effectively. Fee earners time is one of the most valuable resources in a law firm and managing it efficiently can significantly impact the firm’s profitability. By tracking billable hours and assessing case costs, finance managers can ensure that fee earners are spending their time on high-value tasks and cases that generate revenue and profits. This not only benefits the firm but also enhances client satisfaction by delivering cost-effective, efficient legal services. 

• Cash Flow and Liquidity 

Managing cash flow is vital in any business, and law firms are no exception. Finance managers are responsible for overseeing the firm’s cash flow, ensuring that there is enough liquidity to cover operating expenses, payroll, and other financial obligations. Adequate cash flow management enables law firms to weather financial downturns, invest in growth opportunities, and avoid the disruption that can result from financial crises. 

• Profitability and Sustainability 

Profitability is a key indicator of a law firm’s success. Finance management helps in monitoring profitability by tracking revenue, expenses, and profit margins. This information is crucial for making strategic decisions, such as setting billing rates, expanding practice areas, or hiring additional staff. A profitable law firm can provide better services, attract top talent, and invest in technology and infrastructure, ultimately ensuring its sustainability in a highly competitive market. 

• Compliance and Risk Mitigation 

Law firms are often tasked with advising their clients on regulatory compliance and risk management. However, they must also ensure their own compliance with financial regulations and mitigate internal risks. Finance managers play a pivotal role in ensuring that the firm adheres to tax laws, accounts rules, and ethical guidelines. By identifying and addressing potential financial risks, they help safeguard the firm’s reputation.  

• Client Trust and Transparency 

Transparency in financial matters can foster trust with clients. Clients want to know how their money is being spent and expect law firms to provide clear and accurate billing information. Effective finance management helps in generating detailed and transparent billing statements, making it easier for clients to understand the services they receive, and the costs associated with them. Trust and transparency can lead to stronger client relationships and repeat business. 

• Strategic Planning 

Finance managers in law firms are not only responsible for day-to-day financial operations but also for contributing to the firm’s long-term strategic planning. They assess financial data, identify trends, and provide insights that guide decision-making. Whether it’s expanding into new practice areas, acquiring other firms, or investing in technology, sound financial analysis and planning are essential for a law firm’s growth and success. 

Conclusion 

Finance management is a critical component of a law firm’s operations. Efficient financial management not only ensures the firm’s financial stability and profitability but also enhances client satisfaction and trust. By allocating resources wisely, managing cash flow, and adhering to financial regulations, law firms can focus on what they do best: providing expert legal services to their clients.  

Finance management is not just a back-office function but a strategic driver of success in the legal industry. 

To find out more about how Cashroom support your firm’s operational efficiency and growth, get in touch with our team.

E: info@thecashroom.co.uk 

P: 01695 550950 

For law firms, efficient credit control is essential to ensure a healthy cash flow, maintain client relationships, and sustain profitability. Handling accounts receivable and managing outstanding invoices can be a complex and time-consuming process. That’s where specialised services like Cashroom come into play, offering valuable support to law firms in managing credit control effectively. Cashroom now offer an automated credit control service. Ensuring you have an effective credit control strategy in place means you shouldn’t need to worry about chasing year old invoices and your fee earners aren’t spending copious amounts of time chasing fees.   

Timely Invoicing 

One of the key aspects of credit control is sending out invoices promptly. Delayed invoicing can result in delayed payments, affecting your firm’s cash flow. Cashroom ensures that invoices are generated and dispatched in a timely manner through our custom-built client portal. Our dashboard view ensures that clients are well-informed about their financial obligations, reducing the likelihood of disputes or delays in payments. 

Monitoring and Chasing Outstanding Invoices 

Cashroom takes the burden of monitoring and chasing outstanding invoices off your firm’s shoulders. They maintain a vigilant watch over your accounts receivables, sending reminders and escalation notices to clients when necessary. This proactive approach minimizes late payments and disputes and ensures a consistent flow of revenue. 

Customised Credit Control Strategies 

Cashroom recognises that each law firm has unique credit control needs. That’s why we can tailor a firm’s credit control strategy to align with your specific requirements and client relationships. This level of customisation ensures that your clients are treated with care and respect, even during the credit control process. 

Cash Flow Forecasting 

Cashroom can also provide law firms with cash flow forecasting and reporting, helping partners and administrators better understand the firm’s financial position. Accurate cash flow forecasting allows firms to plan for their financial future, identify areas of concern, and make informed decisions regarding staffing and investment.

‘‘We’ve been using the Cashroom’s Credit Control module for 4 months now, and it’s wonderful. Fundamentally, it has automated the process for cash recovery and my company relies on it.’ 

Billy Smith                                                                                                              Director, Clarity Simplicity

Reduction of Administrative Burden 

Outsourcing credit control to Cashroom allows law firms to free up valuable internal resources. This reduction in administrative burden enables lawyers to focus on their core competencies, such as providing legal services to clients, without the distraction of chasing payments and managing the intricacies of credit control. The credit control dashboard view also gives you oversight every step of the way.  

Enhanced Client Relationships 

Efficient credit control isn’t just about collecting payments; it’s also about maintaining positive client relationships. By outsourcing these tasks to a specialised provider like Cashroom, law firms can ensure that credit control activities are conducted with professionalism and diplomacy, preserving client trust and goodwill. We know what works. 

Cashroom’s support in credit control offers a lifeline for law firms seeking to improve their financial health, streamline operations, and enhance client relationships. By outsourcing credit control to specialists who understand the unique challenges of the legal sector, firms can maintain a positive cash flow and continue to provide excellent legal services. As a result, Cashroom has become an invaluable partner for many law firms, helping them navigate the complexities of credit control efficiently and effectively. 

End 2023 on a high with Cashroom’s remarkable and efficient credit control solution. To find out more about how our Credit Control packages to support your firm’s operational efficiency and growth, get in touch with our team.

E: info@thecashroom.co.uk 

P: 01695 550950 

Efficiently managing finances is crucial for law firms in the fast-paced world of legal practice. One aspect that often goes underestimated is credit control. This vital function ensures that a law firm receives timely payments for its services, ultimately contributing to its financial stability and success. In this blog post, we will explore the significance of good credit control within a law firm and how it positively impacts various aspects of the business. 

Late payments causing poor cash flow is a common problem faced by businesses, and it can have a significant impact on growth, stability, and even survival. Unfortunately, late payments are becoming increasingly prevalent in today’s business landscape. 

Maintaining Cash Flow 

A steady cash flow is essential for any business, including law firms. Effective credit control helps prevent delayed or missed payments, ensuring that the firm has the necessary funds to cover operational expenses, investments, and growth initiatives. This enables the firm to run smoothly and seize expansion opportunities when they arise. 

Minimizing Bad Debt 

The risk of bad debt is a pressing concern for law firms. By implementing a robust credit control system, firms can significantly reduce the likelihood of unpaid bills. This proactive approach involves assessing the creditworthiness of clients before taking on their cases and setting clear payment terms and expectations. Through vigilant monitoring and timely reminders, the firm can address potential payment issues early on. 

Preserving Client Relationships 

Effective credit control not only benefits the law firm but also fosters positive client relationships. Clear and transparent communication about fees, payment schedules, and expectations sets a professional tone. When clients understand the financial arrangements upfront, it builds trust and avoids misunderstandings that could strain the lawyer-client relationship. 

According to research by Sage, as many as 30% of small and medium-sized businesses fail to consistently follow up on unpaid invoices out of fear of damaging relationships. 

While maintaining good relationships with customers is important, it’s crucial to remember that consistent follow-ups are necessary to ensure timely payments. Your business depends on prompt payments, and customers should understand and respect that. Excellent customer relationships won’t matter if your business suffers due to poor cash flow. 

Moreover, there is no reason why customers would be offended by a polite reminder for payment if it is communicated properly. In fact, most customers will appreciate and respect your professionalism in following up on unpaid invoices. 

Regularly communicating with customers and understanding their financial situation helps identify potential payment issues early on. This allows you to take proactive steps to minimize any impact on your business. Tracking your customer’s payment behaviour is a valuable tool in this scenario. If you notice a pattern of late payments or missed deadlines, it could indicate that your customer is struggling with their cash flow. In such cases, open and honest communication is essential to finding a mutually beneficial solution. 

Compliance and Ethical Considerations 

Maintaining good credit control practices aligns with the ethical standards expected of law firms. Legal professionals have a duty to uphold the integrity of the legal system, which includes ensuring that clients fulfil their financial obligations. By actively managing credit, law firms demonstrate their commitment to ethical conduct and professional responsibility. 

Enhancing Firm Reputation 

A law firm’s reputation is a valuable asset in a competitive industry. Word of mouth and client testimonials play a significant role in attracting new business. When a firm consistently demonstrates financial acumen through effective credit control, it sends a positive message to clients, peers, and the broader legal community, enhancing its reputation as a reliable and responsible business partner. 

Enabling Growth and Expansion 

Stable finances are a cornerstone for growth and expansion. With a well-organized credit control system in place, a law firm can confidently pursue opportunities for expansion, such as opening new practice areas, hiring additional staff, or investing in advanced technology. This financial stability provides the foundation for long-term success. 

Conclusion 

In the dynamic world of legal practice, the importance of good credit control in a law firm cannot be overstated. It is a multifaceted function that contributes to a firm’s financial stability, compliance with ethical standards, and positive client relationships. By prioritizing credit control, law firms can safeguard their financial health, foster growth, and solidify their reputation in the legal community. In doing so, they set themselves up for long-term success and continued excellence in legal practice. 

To find out more about our Credit Control packages to support your firm’s operational efficiency and growth, get in touch with our team.

E: info@thecashroom.co.uk 

P: 01695 550950 

Event season is upon us, and it is always a busy time of year for the industry. It is great to get out and about to strengthen your firms and your personal network. Success in the legal industry isn’t soley determined by the quality of a firm’s services, it is also influenced by the strength of the firm’s network, its ability to connect with potential clients, peers, partners. Networking and events play a pivotal role in shaping a law firm’s brand, driving business growth, and acquiring new clients. Effectively using the event season to network and reinforce your brand can contribute to expanding your reach and influence on the sector, as well as having a great time and catching up with friends at some fantastic events!  

Building a Strong Brand Identity 

• Visibility and Recognition  

Networking events provide law firms with the opportunity to showcase their expertise, values, and unique selling points. Attending regular networking events or joining networking groups allows lawyers to actively engage with the community and therefore become recognisable figures and in turn, the firm gains greater visibility and brand awareness.  

• Establish Expertise  

Participating in industry specific events by attending, speaking, exhibiting or simply joining conversations allows firms to position themselves as experts in their area of work. Sharing insights and knowledge during panel discussions or presentations helps to solidify their reputation and credibility.  

Expanding your Client Base  

• Lead Generation 

Networking events are goldmines for generating leads. Events are an opportunity to meet potential new clients face to face, creating a personal connection, which can be far more effective than cold outreach. Attendees often prefer working with firms they’ve met in person or seen speak at events.  

• Referral Opportunities  

Networking isn’t just about meeting potential clients; it is also about forging relationships with other firms and suppliers. Law firms can establish referral networks with lawyers in complementary practice areas or clients who serve the same client base, creating a mutually beneficial system for sourcing new clients.  

• Client Retention 

Events and networking also serve as a means to retain existing clients. Clients appreciate that firms make an effort to stay engaged and informed about their industries and legal needs. Events are a great way to connect and catch up with your clients, ensure everything is working well and if there are any issues, events can be an opportunity to iron them out.  

Staying Informed 

Industry events are also a great way to stay informed and ensure your firm is adapting to changing demands. Events offer the opportunity to network with other firms and suppliers and can provide valuable market intelligence for your firm. It’s great to know what the market is talking about; what issues clients and firms are facing and what the hot topics of conversation are. They are also a great way to stay informed on regulatory changes, gain competitive insights which allow you to adapt your strategies accordingly.  

Many exhibitions and conferences have a whole host of talks on which offer learning opportunities too, through workshops, panel discussions and presentations. This provides the chance for legal professionals to learn new skills and knowledge that can enhance their services and value proposition to clients. It’s also a great way to stay informed on what is happening in the market itself.  

Events are for the long game  

Building relationships through networking events helps establish trust and credibility for your firm and personal brand. When potential new clients meet lawyers and staff in person or engage in meaningful conversations, it fosters a sense of trust that can be hard to achieve through online interactions. Networking isn’t just about the short-term gains; it’s about building longstanding relationships. Over time, these connections can lead to long term partnerships, strategic alliances, and even mergers, all of which can significantly benefit law firms.   

Networking and events are indispensable tools for lawyers and law firms for brand building, business development and client acquisition. In a highly competitive market, the ability to connect with others, showcase expertise and foster meaningful conversations can make all the difference. To thrive and grow, law firms should view networking and events as a strategic investment in the firm’s future. By actively engaging in events, law firms can extend their influence, enhance their reputation and open doors to a world of opportunities.  

We’ve listed below some great events that the team at Cashroom will be attending over the next couple of months. It is always a pleasure to meet up with so many friendly faces and make new connections too. If you are attending any of these events, make sure to come and say hello to the team!  

E: info@thecashroom.co.uk 

P: 01695 550950 

In an ever-evolving legal landscape, law firms face a multitude of challenges, including regulatory changes, client demands, and technological advancements. These challenges necessitate a forward-thinking approach to risk management, compliance, and efficiency within the finance functions of law firms. As we look ahead, it’s clear that the future of finance in law firms will be shaped by a commitment to proactive risk management, stringent compliance measures, and enhanced operational efficiency. 

The Changing Landscape of Legal Finance 

Traditionally, finance functions within law firms have primarily focused on managing billing, accounts payable, and financial reporting. However, as the legal industry undergoes significant transformations, the role of finance has expanded. Today, finance departments are expected to play a vital role in risk management and compliance to meet the demands of clients, regulators, and the firm itself. 

The Future of Risk Management 

• Data-Driven Decision-Making: The future of risk management in law firms will be heavily reliant on data analytics. By harnessing the power of data, finance teams can identify potential risks more effectively. Advanced analytics can provide insights into billing trends, client behaviours, and financial performance, allowing firms to proactively address emerging issues. 
• Client Due Diligence: As clients become more discerning and demand greater transparency, law firms must conduct rigorous due diligence to assess the risks associated with potential clients and matters. Finance functions will play a critical role in evaluating the financial stability of clients and their potential impact on the firm’s risk profile. 
• Cybersecurity and Information Security: The rise of cyber threats poses a significant risk to law firms. Finance departments will need to collaborate closely with IT and legal teams to implement robust cybersecurity measures. Ensuring the security of financial data and client information will be paramount. 

Ensuring Compliance 

• Regulatory Expertise: Finance professionals within law firms will need to stay up-to-date with evolving regulatory requirements. Compliance teams will rely on finance to ensure that financial transactions and reporting adhere to the latest legal and regulatory standards. 

• Technology-Enabled Compliance: Technology, including artificial intelligence and machine learning, will play a pivotal role in automating compliance checks. These tools can help identify potential compliance issues early on, reducing the risk of regulatory penalties. 
• Client-Specific Compliance: As clients increasingly demand specialised compliance reporting, finance functions must adapt to provide tailored solutions. This may include creating client-specific dashboards or customising financial reporting to meet individual client requirements. 

Enhancing Operational Efficiency 

• Process Automation: The future of finance in law firms will see increased automation of routine tasks, such as invoice processing and expense management. Automation not only reduces the risk of human error but also frees up finance professionals to focus on strategic activities. 
• Streamlined Billing: Efficient billing processes are crucial for law firms. Finance functions will need to implement systems that simplify the billing process, making it easier for clients to understand and approve invoices promptly. 

• Resource Allocation: Finance teams will play a vital role in optimising resource allocation. By analysing financial data, they can help law firms make informed decisions about staffing, matter management, and client engagement, ultimately improving overall efficiency. 

The future of finance in law firms is undeniably intertwined with effective risk management, compliance, and operational efficiency. Finance professionals will need to embrace technological advancements, harness data analytics, and adapt to changing regulatory landscapes to meet the evolving needs of their firms and clients. By doing so, law firms can position themselves for success in an increasingly complex and competitive legal industry. 

At Cashroom, we are passionate about ensuring law firms finance functions are effectively mitigating risk, ensuring compliance and efficient. Learn more about how to future proof your law firm and its finance function at the following sessions Cashroom will be leading over the next few weeks:  

CLN Conference: 26th October 

Manchester Law Society: 8th November

Digby Brown Webinar: 24th November

You will also see us at Legal Sector Advisors & Suppliers Conference, Leap Modern Law Conveyancing Awards and the Legal Eye Compliance Newtworking Event.  Feel free to come and chat to the team about our finance services.  

E: info@thecashroom.co.uk 

P: 01695 550950 

It is becoming more and more popular for firms to outsource their cashiering and finance function due to the increase in compliance regulations, risk of cybercrime and the many benefits it provides to firms. Outsourcing allows firms to reduce overhead costs by eliminating the need for some or all of your in-house financial staff and associated expenses. Additionally, outsourcing provides access to specialised expertise in legal accounting, ensuring compliance with industry regulations and freeing up law firm resources to focus on core legal activities, making outsourcing an attractive and cost-effective solution. Outsourcing is becoming a popular option as firms realise the value of outsourcing in improving efficiency, reducing risk and enhancing their overall financial management and operations.  

When outsourcing your cashier, they should provide peace of mind to your team, additional resource and save costs for your firm. Your outsourced cashier provides you access to specialist bookkeepers at a fraction of the cost of hiring them in-house, leaving your fee earners to do what they do best – practice law.  

At Cashroom, we pride ourselves in delivering an industry best service for our clients, utilising technology and our combined experienced from our qualified cashiers and accountants. We’re more than just your cashier, we become part of your team. When you work with Cashroom, you have a team of cashiers to support your firm, who are experts on the right systems for you. You will also have a dedicated contact to reach out to when you need.  

Here are some of the benefits that using Cashroom as your outsourced cashier can bring to your firm.  

Cashroom use the latest Innovative and Secure Technology:  

At Cashroom, our cashiers are supported by technology that optimises their daily processes, allowing requests to be processed with accuracy and more speed. We are system agnostic, meaning that you don’t have to change your Practice Management System to work with us- we support them all.

Our open banking technology allows funds from the banking platform to be uploaded in real time to our secure portal, providing fee earners with real time insights to client funds helping to speed up transactions whilst staying compliant and minimising risk. Our Cashroom portal seamlessly connects with leading Practice Management Systems, allowing you to view and access cashiering requests and client ledgers conveniently in one place. With direct uploads and the requirement to only add data once, we use our integrations and technology to remove common ‘copy and paste’ errors that can frequently occur with traditional methods of cashiering.  

Secure Communication: 

Cashroom offers a cutting-edge portal that elevates the safety and security of communication between Cashroom and clients. Our innovative comments feature ensures a seamless communication thread in one convenient location, eliminating the hassle of searching through old emails. With our highly secure portal, which requires 2FA login, you can confidently store and share documents and sensitive information without worrying about unauthorised access. In a world filled with fraudulent emails and phishing attempts, staying vigilant is crucial, which is why our clients and their insurers highly value the simplicity and security of the Cashroom portal. 

Incoming funds Dashboard:  

We provide a clear and simple dashboard for incoming monies for your firm. Your team will monitor your bank for you and then, using our portal, clients can view their incoming funds dashboard which keeps you informed when funds are received into the bank. Fee earners don’t need to chase for expected funds as our expert cashiers will send you a notification once the funds are in. This means you can focus on other important tasks, knowing that you’ll be notified when they can be claimed. 

Truly System Agnostic:  

Did you know Cashroom are one of the only outsourced cashiering providers not owned by a case management system? Legal Accounting is all that we do – it’s our only focus. Is your cashier struggling to work with the Practice Management System of your choice? Our expert Cashroom cashiers are trained to work with any Practice Management System which means you don’t have to worry about switching providers when you join us. Our system agnostic approach allows you to choose the system that best suits your firm. You will have your own team of cashiers at Cashroom, ensuring a smooth integration for your firm. Let us take care of your cashiering needs, so you can focus on doing what you do best- practicing law!

Scalable Services: 

Do you struggle with busy periods and resource in your finance function? When you partner with Cashroom, we have the resources to cope with fluctuating demands. This is a particular benefit for conveyancing firms as we are able to deal with busy completion days and the additional transactions can be easily covered by our team of over 140 cashiers. This means our clients no longer need to worry about holiday cover, parental leave, spikes of activity or sickness, as our team of cashiers are on hand to provide the right resource for your firm.  

Support your firm’s growth: 

At Cashroom, we are more than just your cashiers. We work with our clients to improve efficiencies in their processes and procedures and support the firm’s growth. Our management accounting packages, produced by our team of accountants, ensure clients know where they are so they can plan where they are heading. In the current legal climate, firms can’t just stand still, so knowing where you are going is crucial. We are here to support our clients and firms to ensure they are future proof and can successfully mitigate risk and ensure compliance with their accounts.  

If you are interested in having a confidential conversation with our team, please get in touch.  

E: info@thecashroom.co.uk 

P: 01695 550950 

Law firms face a myriad of compliance challenges that can be intricate and expensive to navigate. Compliance is not just a mere checkbox exercise for law firms – it is the very foundation upon which ethical conduct, client trust, and professional credibility are built. Failure to comply with compliance regulations can result in monetary fines from the SRA, tarnishing the firm’s reputation and putting clients at risk. Compliance is not just a legal obligation, it’s a testament to a law firms’ commitment to upholding the highest standards and client trust. 

To assist law firms in dealing with compliance, we have compiled a few top tips. By following these steps, law firms can ensure robust compliance and safeguard both themselves and their clients. 

Stay ahead of regulatory changes 

Regulation for law firms can be a complex and ever-changing landscape. There are frequent updates and changes that firms must stay ahead of, with numerous providers claiming to be experts in these areas. It is crucial to establish processes that keep you informed about new regulations, updates, and guidelines that affect your practice areas. This entails regular monitoring of regulatory authorities such as the SRA, CLC, Solicitors Accounts Rules, as well as staying up-to-date with the law itself. Subscribing to trusted legal news sources and participating in industry webinars can help you remain informed about the latest changes and developments. 

Here is a list of some excellent publications you can subscribe to: 

• Today’s Media 
• Bold Legal 
• Hey Legal (Scotland) 
• Legal Futures 
• Modern Law Magazine 

Develop a culture of compliance in your firm 

Compliance is not solely the responsibility of your COLP/COFA or your compliance team. It should be a mindset and culture that permeates the entire firm. You need to create an environment where every member of the firm understands the significance of compliance and feels empowered to contribute because they fully grasp the implications if regulations are not upheld. Introducing regular training sessions, internal communications, and raising awareness about compliance requirements can help foster a proactive culture. 

Hiring a third-party advisor or consultant to handle compliance regulations can save law firms valuable time and money in the long run. There are numerous suppliers that can assist with training and compliance. Here are a few examples: 

• Teal Compliance 
• Hive Risk 
• Legal Eye 

Implement comprehensive policies and procedures 

To ensure compliance, firms need clear and well-documented policies and procedures. These should cover key areas such as data protection, anti-money laundering (AML), anti-bribery, client confidentiality, and conflict of interest. These policies should be easily accessible to all employees and regularly updated to reflect changes in regulations. However, it is not enough to simply have these policies and procedures in place. It is important for legal firms to train their entire team in essential processes so that everyone knows how to avoid risk. 

There are resources available to support you with policy writing and compliance. For example, Legal Eye’s policy store provides a set of documents for firms to use in building their risk and compliance framework. You can find more information here

Conduct audits and risk assessments 

To stay ahead with compliance, firms need to conduct regular internal audits and risk assessments. These help identify potential compliance gaps and vulnerabilities, allowing law firms to proactively address issues before they escalate. Audits should encompass financial operations, client data handling, and confidentiality practices. By conducting your own regular internal audits, your firm will be in a confident position when it comes to regulatory audits. 

At Cashroom, we provide support to clients in ensuring their accounts processes and procedures are efficient and compliant – we can also provide ‘health checks’ for your firms in-house accounting procedures and processes. To find out more about how we can help your firm with accounting compliance, please get in touch with us. 

Implement robust data protection practices 

The General Data Protection Regulation (GDPR) places significant obligations on firms handling personal data. Law firms manage vast amounts of sensitive data on clients, making it crucial to implement stringent data protection practices. This includes obtaining explicit consent from clients, securing data storage, and promptly addressing any data breaches. Data protection training for all staff members is crucial to ensure consistent compliance with data protection regulations and the law. 

The Law Society has a comprehensive guide on GDPR for law firms that you can read here 

Maintain meticulous record-keeping 

Accurate and organized record-keeping is essential for compliance. Maintaining records of financial transactions, client communications, and internal policies should be of utmost importance for firms. These records not only demonstrate compliance but also serve as valuable resources in case of audits or legal disputes. 

For example, Cashroom provides clients with an audit trail and communication tracking through our secure and innovative client portal. You can learn more about our client portal here: [link to blog on portal]. Does your firm and your outsourced services provide this audit trail for you? 

Ongoing training 

Law firm leaders must foster an ethical culture from the top down and set expectations that all employees will uphold compliance laws and best practices. Compliance education is an ongoing process. 

Non-compliance can happen when legal teams aren’t properly educated or trained. So at the very least, make sure compliance training is a part of your law firm’s onboarding process when new hires join.   

But compliance education isn’t just a one-and-done affair, either. Most legal professionals are up to speed on major regulations, but compliance laws evolve. It’s important to schedule ongoing trainings to keep staff members aware of changes and remind them about data security measures—especially if they’re working from home. 

 It is important that everyone in the firm understands that every single employee plays a role in ensuring compliance for the whole firm and clients.   

So, to conclude, compliance isn’t a one-time task, it is an ongoing commitment for your firm that requires vigilance, adaptability and dedication to ethical conduct. By staying informed, developing a compliance orientated culture and implementing robust policies and practices, firms can navigate the complex regulatory landscape with confidence. But we know it isn’t always that straightforward, if you need any support with compliance there are businesses dedicated to certain areas such as document storage, AML and cyber security that can help you, some of which are mentioned in this article.

If you require any support with your accounting compliance or have any questions on how Cashroom can provide support with ensuring compliance and efficiency in your firm, please get in touch.  

E: info@thecashroom.co.uk 

P: 01695 550950 

In the competitive landscape of the legal industry, law firms face unique challenges that demand efficient financial management. As legal practices aim to enhance their profitability, client services, and overall performance, the significance of management accounting cannot be overstated. Effective management accounting can support firms to thrive in an ever-changing, dynamic marketplace.  

• Cost Control and Profitability 

One of the primary reasons why management accounting is beneficial for law firms is its ability to provide insights into cost control and profitability. By tracking and analysing costs associated with various aspects of the firm’s operations, such as staff salaries, overhead expenses, and client acquisition, law firms can identify areas where they can optimise spending and maximize profits. 

For instance, management accountants can help identify which practice areas or clients generate the highest profits and which ones may need to be reevaluated or refined. This data-driven approach enables firms to make informed decisions about resource allocation and pricing strategies. 

• Budgeting and Financial Planning 

Effective financial planning is the cornerstone of any successful business, including law firms. Management accountants play a pivotal role in creating budgets and financial plans that align with the firm’s strategic goals. This involves forecasting revenue, expenses, and cash flow, which helps law firms set realistic financial targets and allocate resources accordingly. 

Management accounting ensures that law firms have a clear picture of their financial health and can make necessary adjustments to achieve their financial objectives. 

• Performance Measurement and KPIs 

Key Performance Indicators (KPIs) are essential tools for evaluating a law firm’s performance. Management accountants can work closely with firm leadership to define and track KPIs that are tailored to the firm’s specific goals and objectives. These KPIs might include client retention rates, revenue by lawyer and more. 

By continuously monitoring KPIs, law firms can identify trends, assess their progress, and make informed decisions to enhance performance. Management accounting empowers law firms to adapt to changing market conditions and take proactive steps to maintain or improve their competitiveness. 

• Compliance and Regulatory Requirements 

Law firms must adhere to stringent financial reporting and transparency requirements. Management accountants are well-versed in navigating these regulatory waters, ensuring that law firms stay in compliance and avoid legal complications. 

Moreover, management accounting can assist law firms in identifying potential risks and implementing risk management strategies. By staying ahead of compliance issues, firms can build trust with clients and safeguard their reputation. 

• Strategic Decision-Making 

In today’s rapidly evolving legal landscape, law firms must make strategic decisions that position them for long-term success. Management accountants provide the financial data and analysis necessary for informed decision-making. Whether it’s evaluating expansion opportunities, mergers and acquisitions, or technology investments, management accounting plays a crucial role in assessing the potential impact on the firm’s financial health and overall strategy. 

Cashroom have a dedicated team of management accountants to support our clients with budgeting, cashflow projections and monitor actual results against projections to allow firms to know where they are and predict where they are going. Our management accounting services range from the production of simple quarterly management information to a full monthly reporting package including management accounts, profit & loss, balance sheet and cashflow projections, analysis of fees rendered and recovered, and capital and current accounts.  

Derek, Head of Client Service at Cashroom is one of our specialist management accountants, qualifying with BDO in 1992 Derek has been a member of the Institute of Chartered Accountants of Scotland since then. Bringing a wealth of experience to his role as Head of Accounts at Cashroom, Derek has previously worked for Wm Low & Co Supermarkets, Royal Bank of Scotland and has spent time working across a number of financial services, retail and energy finance departments.  

Derek says “Management Accounting is not just a financial tool; it is a strategic asset for law firms. In an industry where efficiency, profitability and compliance are paramount, management accounting provides the necessary tools and data for firms to thrive. By harnessing the power of data driven insights, law firms can make informed decisions, optimise operations and ultimately deliver better outcomes for their clients all while ensuring their own long-term viability.”  

To find out more about our Management Accounts packages to support your firm’s operational efficiency and growth, get in touch with our team.

E: info@thecashroom.co.uk 

P: 01695 550950 

As the seasons change and children head back to school, it serves as a poignant reminder of how swiftly time passes. As a parent, I am filled with curiosity about the individuals my children will grow into and the paths they will embark on when they enter the professional world. My eldest aspires to become a teacher, her nurturing nature shining through. My middle child, on the other hand, oscillates between dreams of becoming a professional golfer or football player, channeling all his energy into physical exercise. And then there’s my youngest, at the tender age of 4, who simply wants to be a “daddy”. It’s amusing to imagine each of them in the workplace one day and envision what that future holds for them. 

Meanwhile, I do have to get to work once I stop gazing at the future! At Cashroom, I am fortunate to be surrounded by a young, vibrant and talented team. It’s a delicate balance, knowing when to push boundaries and when to respect the limits that weren’t in place when I first started in my career. So, how do my fellow leaders and I at Cashroom create a work environment that resonates with the younger generation? 

It’s a continuous work in progress, but here are my top tips: 

1. Purpose and Values: Younger generations seek work that aligns with their values. As leaders, we must clearly define our company’s mission and values, connecting with our employees on a deeper level. When our workforce believes in the purpose of our organization, their engagement and motivation soar.
2. Transparent Communication: Building trust with the younger generation requires open and transparent communication. We encourage two-way dialogues, actively listening to our employees’ ideas, concerns, and feedback. Keeping everyone informed about company progress, goals, and changes fosters a sense of trust and inclusivity.
3. Empowerment and Autonomy: The younger generation values autonomy and the ability to make a meaningful impact. Effective leaders delegate responsibilities and provide employees with the freedom to make decisions within their roles. This sense of ownership and empowerment leads to increased job satisfaction.
4. Skill Development and Learning Opportunities: Continuous learning and skill development are paramount to the younger generation. We invest in training programs, mentorship, and growth opportunities, demonstrating our commitment to employee development and retaining top talent.
5. Flexibility and Work-Life Balance: Striking a healthy work-life balance is highly valued by younger generations. Leaders who promote flexible work arrangements, remote options, and policies that support personal well-being create an environment that respects and values their employees’ lives outside of work.
6. Recognition and Feedback: Regular recognition and constructive feedback are crucial for motivating and retaining younger employees. Our managers provide timely feedback, acknowledging their contributions and boosting morale and job satisfaction.
7. Collaboration and Teamwork: The younger generation thrives in collaborative work environments. We foster teamwork by promoting cross-functional collaboration, creating inclusive spaces for idea sharing, and embracing diverse perspectives.
8. Diversity and Inclusion: Prioritizing diversity and inclusion is a key focus for the younger generation. We actively work towards creating a workplace that values and respects employees from all backgrounds, ensuring everyone feels valued and respected.
9. Technology Integration: Leveraging technology aligns with the tech-savvy nature of the younger generation. We invest in tools and platforms that streamline communication, project management, and collaboration, enhancing efficiency and productivity.
10. Adaptability and Innovation: Younger employees appreciate leaders who are adaptable and open to innovation. Embracing change, experimenting with new ideas, and fostering a culture of innovation are vital for keeping up with the ever-changing business landscape.
11. Social and Environmental Responsibility: Younger employees are drawn to companies that prioritize social and environmental responsibility. We demonstrate our commitment to sustainability and ethical practices, aligning our organization with the values of our workforce.

In essence, effective leadership and management for the younger generation involve creating a workplace that emphasizes purpose, communication, empowerment, growth, and inclusivity. By understanding and adapting to the unique preferences of our younger employees, we can create an environment where both our organization and its workforce thrive. 

 To find out about Cashroom and our legal accounting services, get in touch:  

E: info@thecashroom.co.uk  

P: 01695 550950 

As the summer holidays end, it’s time to embrace a new routine and reset. Remember the excitement of preparing for a new school year, gathering fresh supplies, and getting your uniform ready? It’s a chance to feel rejuvenated, organized, and prepared for the upcoming academic year. As parents, juggling school runs, after-school activities, and daily work tasks can be challenging. However, establishing routines can help alleviate stress, create consistency, and improve time management. This ultimately leads to a better work-life balance, allowing you to enjoy quality time doing what you want in the evenings without being glued to your laptop or constantly playing catch-up. 

Working in the legal sector can be immensely gratifying, but it also presents its fair share of challenges. Balancing caseloads, client meetings, research, and various other responsibilities daily can be quite demanding. That is why it is crucial to establish an effective routine that allows you to manage your workday efficiently and maintain a healthy work-life balance. To help you achieve this, we have compiled some invaluable tips to inspire you in creating new routines that will effectively manage your day: 

1. Start your morning right 

Start your day off right with a consistent morning routine. Whether it’s energizing exercise, an hour of work before others wake up, savoring a peaceful 5 minutes with your morning coffee, enjoying a hearty breakfast with your loved ones, or taking a refreshing walk, establishing a routine sets the stage for a positive and productive day ahead.  

2. Make and prioritise a To-Do List: 

Create a daily to-list of task plan. Prioritise your tasks based on urgency and importance. You can use tools such as calendars or task management apps to keep track, plus it always feels great when you get tick your tasks off! Some people even find it useful to create these to-do lists the day before. 

3. Time blocks 

Divide your workday into time blocks that are dedicated to specific tasks. For example, reserve mornings for research and document preparation and afternoons for client meetings. This structured approach ensures you allocate sufficient time to each aspect of your role and helps to reduce stress and feeling overwhelmed Have you ever looked at your to-do list and thought ‘where do I even start’… try adding time blocks and work through the tasks in each time block individually.  

4. Set time for emails and phone calls 

We’re all guilty at some point of instantly abandoning a task for an email or phone call, While this can’t be helped sometimes, it is good practice to have dedicated time for checking and responding to emails and phone calls. This avoids constantly switching between tasks which can disrupt your focus and make you feel overwhelmed. You can use automatic replies to let people know when you will be managing your mailbox too.  

5. Take Regular Breaks 

Incorporate short breaks into your routine to recharge and maintain concentration. Brief walks, a cup a tea, a quick stretch, sit in the garden for 5 minutes, ensuring mental breaks to prevents burnout.  

6. Stick to deadlines 

Adhere to deadlines and build them into your routine. Ensuring you are on track to meet deadlines with a good routine means you can stay on track and complete tasks on time, reducing last-minute rushes and stress.  

7. Review and Reflect 

At the end of each day or week, give yourself time to review your accomplishments and adjust your routine as needed. Reflect on what has worked well and what could be improved. It’s rewarding to think of 3 things you have accomplished that day, even if it is just a thought at the end of each day, build a routine that allows you to celebrate your small wins every day.  

8. Define Boundaries 

Set clear boundaries between your work and personal life. Try to avoid overworking, and if you must, set time for this in a calm environment. Ensure you make time for family, hobbies and relaxation.  

Establishing consistent routines can empower you to effectively manage your workday. Prioritizing elements such as time management, stress reduction, and work-life balance within these routines allows us to navigate the challenges of our profession while also prioritizing our well-being. It’s important to remember that routines should be adaptable to your unique needs and responsibilities and may require adjustments from time to time. By fine-tuning your routine along the way, you can create a well-engineered system that becomes your strongest ally in achieving professional success, personal satisfaction, and quality time with your loved ones. 

Top routine tips from our team 

“A routine I use is that if I get stuck on a challenge, I often like to go for a walk and some fresh air to help think of a new approach to solving the given problem.” – Colin Roddick, Senior Software Engineer  

“When setting a to do list each morning I think it should form part of everyone’s routine to update timesheets correctly to avoid incorrect data entry.” – Lisa Topham, Cashroom Manager  

“My one is ‘Eat the Frog’! It means don’t procrastinate over doing the ‘horrible’ jobs. If you get it done first thing you can enjoy the rest of the day without knowing you have to eat a frog later in the day.” – Cleo Mayhall, Head of Client Services  

“I spend 10 minutes at the beginning of every week planning my ‘must dos’ then on a Thursday I review the list to see how I’m getting on and make any changes that I need if priorities have changed. I also block time out in my calendar if I need to focus on something for an hour so that people can see I am not available.” – Rachel Faris, Projects and Compliance Manager  

“Failing to prepare is preparing to fail: give yourself 15 minutes in the morning to review your daily tasks and create an action plan in order to achieve your daily goals.” – Richard Evitts, Senior Operations Manager  

“To get organised for the day/week, I write down a list of tasks I would like to have completed. I then put a number next to each task to highlight priority. Number 1 being the highest and so on. Then I put calendar appointments into my diary as a plan to stick to and cross off tasks as I go. It is very satisfying to see the tasks being crossed off as the week goes on. If there is a larger piece of work to complete, I would just break that down into smaller tasks and this massively helps show progress and still feels like you are winning.” – Andrew Lowe, Training & Development Manager  

 To find out about Cashroom and our legal accounting services, get in touch:  

E: info@thecashroom.co.uk  

P: 01695 550950 

With the women’s world cup captivating households this summer, we couldn’t help but delve into an industry we know quite well and explore how women have played their part through the years – Women in law! 

Empowering Women in the Legal Profession – A Historical Perspective 

The legal landscape in the United Kingdom has undergone a remarkable transformation over the years, and at the very core of this evolution are the brilliant and influential women in law who have tirelessly worked to shape and redefine the legal profession and promote equality. From breaking down gender barriers to driving legal reform, women in law have been at the forefront of change, leaving an indelible mark on both the profession and society. 

From Precedents to Progress: Historic Milestones 

The journey of women in law is marked by pivotal moments that have forever altered the course of legal history. The suffragettes of the early 20th century, including trailblazers like Emmeline Pankhurst and Christabel Pankhurst, not only fought for the right to vote but also laid the foundation for women’s broader participation in public life, including the legal profession. 

The introduction of the Sex Disqualification (Removal) Act 1919 marked a significant milestone, as it allowed women to enter the legal profession for the first time. This opened doors for pioneering figures like Helena Normanton and Rose Heilbron, who became the first women to practice as barristers and later as King’s Counsel. Their courage and determination set the stage for generations of women to follow. 

Breaking Barriers: Women Shaping Legal Discourse 

The 21st century has witnessed a surge in women occupying prominent positions in UK law, breaking through glass ceilings and making their mark in various legal spheres. One remarkable figure is Baroness Brenda Hale, who made history as the first female President of the UK’s Supreme Court. During her tenure, she presided over some of the most significant legal decisions in the country, leaving a lasting impact on the interpretation and application of the law. 

Lady Hale’s legacy is complemented by the tireless work of women like Shami Chakrabarti, who has passionately championed human rights as the Director of Liberty and subsequently as a member of the House of Lords. Her dedication to justice and civil liberties has made her a respected voice in both legal and public discourse. 

Advocacy and Social Change: Women in Action 

Women in law have gone beyond courtroom battles; they have been instrumental in driving social change through their legal expertise and advocacy. Baroness Doreen Lawrence’s unwavering pursuit of justice for her son, Stephen Lawrence, led to a ground breaking public inquiry that exposed institutional racism within the police force. Her efforts paved the way for legal and societal reforms aimed at addressing systemic injustices. 

The Road Ahead: Challenges and Progress 

While tremendous progress has been made, challenges still persist for women in law. They continue to face barriers to advancement, gender bias, and unequal representation in leadership roles. However, the resilience and determination of these women continue to pave the way for change. Organizations like the Association of Women Solicitors and First 100 Years are actively working to promote gender equality within the legal profession and preserve the stories of pioneering women for future generations. 

A Tribute to Women in Law  

The contributions of women in law extend far beyond courtrooms and legal chambers. They reach into boardrooms, classrooms, and every corner of society. These women have not only shattered stereotypes but also fostered a culture of inclusivity and diversity within the legal profession. 

As we celebrate the achievements of women in law, we are reminded that their stories are not just about individual success; they embody collective progress and a brighter future for generations to come. Their determination to uphold justice, champion human rights, and drive social change sets an inspiring example for us all. Just as they have tirelessly worked to shape the legal landscape, let us also come together and strive for a more just, equitable, and inclusive society. 

“When I founded Women in Wills I had no concept of how quickly the membership would grow reaching over 1,000 members within a couple of years. With the aim of fostering collaboration, sharing knowledge and providing support I have been proud to witness and celebrate the career progression and successes from many members of the group over the years – and I hope there are many more to come! It has been heart warming to see the group, made up of women representing regulated and non regulated firms of all shapes and sizes grow and see so many friendships made over the years. As women, it is important that we lift each other up and encourage the next generation of women in law.”

Karen Babington, Co-Founder of Collaborative Conveyancing, NED of Today’s Media

Find out more about Women in Wills here

To find out about Cashroom and our legal accounting services, get in touch:  

E: info@thecashroom.co.uk  

P: 01695 550950 

[Glasgow, 14/08/23]

Today, Denovo Business Intelligence, a leading provider of legal software solutions and services, is pleased to announce a significant leadership transition as George Blair, the existing Managing Director, steps down from his operational responsibilities after four decades of dedicated service. Effective Monday 14^th August 2023, Steven Hill, the current Operations Director, will assume the role of Managing Director, responsible for overseeing the day-to-day operations of the company.

George Blair, a visionary leader, and industry veteran has successfully guided Denovo Business Intelligence through numerous milestones and challenges since its inception. Under his guidance, the company has become a trusted name in the legal software industry, delivering innovative solutions that have transformed the way law firms manage their operations. In recognition of his immense contributions, George will retain the esteemed title of Chairman and Founder, ensuring his continued involvement in shaping the company’s strategic direction.

As George embraces his new role, he expresses his utmost confidence in Steven’s ability to lead Denovo into its next phase of growth and innovation. With more than 18 years of experience in the legal software sector and a deep understanding of Denovo’s operations, Steven has proven his commitment and expertise time and again. He has played a pivotal role in the company’s success, contributing to its continued expansion, and establishing strong relationships with clients and partners.

George stated, “Now, as I pass the torch to Steven Hill, I do so with complete confidence and unwavering belief in his abilities. Steven, has been an integral part of our journey, consistently demonstrating exceptional leadership and an unwavering commitment to our vision. His deep understanding of our operations, industry knowledge, and dedication to delivering excellence have earned him the respect and admiration of our clients and the entire team.”

Steven Hill’s appointment as the new Managing Director signifies a seamless transition of leadership, underscoring Denovo’s commitment to stability and continuity. Steven brings a wealth of operational knowledge, strategic acumen, and a passion for delivering exceptional customer experiences. As he assumes this new role, Steven will work closely with the entire Denovo team to build upon the company’s strong foundation and drive innovation, ensuring that Denovo remains at the forefront of the legal software industry.

“I am honoured and excited to take on the role of Managing Director at Denovo,” said Steven. “I am grateful for the trust placed in me by George and the entire team. Together, we will continue to advance our mission of empowering law firms with cutting-edge technology and unparalleled support to make their lives easier.”

George Blair will remain actively involved in the company as Chairman and Founder, providing strategic guidance and leveraging his vast industry knowledge to support Denovo’s long-term vision.

George added, “Today marks a significant milestone in the history of Denovo, and I am filled with a mix of emotions as I announce Steven Hill’s appointment as the new Managing Director of our esteemed company. It is with great pride and a touch of nostalgia that I congratulate Steven on this well-deserved promotion.” George continued, “For over four decades, I have had the privilege of leading this incredible team and witnessing the growth and success of Denovo. Together, we have overcome challenges, pioneered groundbreaking solutions, and fostered strong relationships with our clients and partners. It has been an honour to serve as the Managing Director.”

This transition marks an exciting new chapter for Denovo Business Intelligence as it builds upon its solid foundation to further strengthen its market position and drive continued success.

About Denovo Business Intelligence: Denovo Business Intelligence is a leading provider of legal software solutions, dedicated to transforming the way law firms manage their operations. With a comprehensive suite of innovative products, Denovo empowers legal professionals to streamline their workflows, enhance collaboration, and drive efficiency. Founded in 1982 (with the business name switching to Denovo BI in 2009), the company has built a reputation for delivering exceptional customer experiences and cutting-edge technology. For more information, please visit denovobi.com.

To find out about Cashroom and our legal accounting services, get in touch:  

E: info@thecashroom.co.uk  

P: 01695 550950 

It’s been a tough few years for all businesses, and law firms are no exception. They’re currently facing a multitude of challenges—all of which threaten to eat into your law firm’s revenue.

You’ve likely seen the bad-news stories: The pandemic wreaked havoc on the global economy, with the UK economy contracting by 9.7% (the steepest drop since records began). Taxes, energy prices, and the cost of living have all increased sharply over the past 12 months—meaning inflation has reached near 40-year highs.

In the face of such challenging circumstances, it’s incumbent on law firms to act to protect their firm revenue and profitability.  How do law firms stay profitable in difficult times? 

As our research consistently shows, one important answer is to adopt legaltech solutions to enhance your processes and improve your utilisation and collection rates. According to the 2022 Legal Trends Report, these figures sit at 33% and 89% respectively, showing there’s still much work to be done.

This article will delve into five ways that legaltech can increase firm revenue, exploring:

1. Increasing lawyer efficiency
2. Calculating law firm profit by partner (utilisation rates)
3. Billing all fee-earning work
4. Collecting all that you’re owed
5. Showing you where your best leads are coming from

1. Increasing lawyer efficiency 

Your firm’s time is incredibly valuable. If you’re not actively maximising lawyer efficiency at your firm, ensuring they’re spending company time on high-value activities that tangibly move the needle, you’re missing out on revenue. We covered this topic in more detail in our blog, “How Legal Workflow Automation Increases Law Firm Revenue and Efficiency,” but it’s worth reiterating in this article too. 

Look, we’re not saying that every hour of the day needs to be billable—that’s unrealistic. However, it’s important to understand how effectively lawyers are utilising their non-fee earning time. Are they using chunks of their week just staying on top of their email inbox, engaged in phone or email tag to schedule upcoming appointments, or trying to manually onboard new clients into spreadsheets and diaries?

These common firm activities, when not managed effectively, can eat up hours of every week. If your experienced, expert lawyers are spending their days completing tasks that technology could do in a fraction of the time, they’re not necessarily spending their days wisely.

Automating these processes using legaltech frees lawyers up to decide how to spend their non-fee-earning time. They could use these extra few hours each week to stay up-to-speed with legislative changes and sign up for training sessions to understand the industry’s latest best practices. Or, they could get out there and network, build new relationships, and follow up with potential leads. 

2. Calculating contributions  by partner

If you’re not accurately calculating the profit from each partner, you may be missing out on easy ways to increase revenue. By identifying high- and low-earners, you can then dive in and begin to understand what separates the two and where revenue is being lost.

Let’s quickly explain how you can calculate revenue by partner using two simple metrics: utilisation rates and time recording. 

Get clear on your utilisation rates

By calculating your utilisation rate, you can see just how many hours per day each partner spends on billable work. Simply use the following formula: 

Billable hours worked / number of hours worked in a day = utilisation rate.

The results might shock you. 

According to the 2022 Legal Trends Report, lawyers are completing just 2.6 hours of billable work per day. You read that correctly: lawyers are on average losing 5.4 hours per day on non-fee-earning work. 

Partners with low utilisation rates clearly need to improve their efficiency—for instance, by implementing legaltech so that they can get on top of their administrative processes. Once you get clear on your utilisation rates, you can then begin to identify who needs help, why, and adopt the necessary solutions.

Recording time

You might be thinking: “Of course we record our time—how do you think we calculate our billable hours?” 

That’s all well and good—but your lawyers should record all their time, not just their fee-earning hours. Recording billable hours might help with invoicing, but it does little to help improve firm-wide efficiency. 

After all, lawyers should be spending their time on fee-earning activities. You’re not going to identify inefficiencies that are affecting your firm’s revenue by simply analysing what you’re already doing well (and billing for).

Rather, lawyers should habitually record every single thing they do every day. Better still, if they do this following a consistent, firm-wide process, then firms can easily analyse their firm’s overall efficiency across all of its lawyers. This doesn’t need to be an onerous, manual process. After all, rather than increasing efficiency, that would do the exact opposite.

This is where time recording and case management software like Clio Manage can help. It offers a wide range of automatic time tracking capabilities, instantly populating every work entry into a comprehensive timesheet in the Activities page for each individual member of your firm. 

Firms can then generate detailed time reports to understand exactly how their lawyers are spending their time, identify profitability-busting inefficiencies, and devise the appropriate solutions.

You can try Clio for free here. 

This article was originally published by Clio—read the full article.