The Legal Institute of Forward Thinking says; “Law firms don’t fail for lack of profits; they fail for sufficient cash to operate.” Change is inevitable in the business world, but how you adapt to this change makes the difference between whether you sink or swim. One way that savvy firms are choosing to adapt is by outsourcing essential business tasks, like legal cashiering.
An outsourced legal cashier provides a variety of functions, including but not limited to: processing the day to day transactions, set up bank payments, assist with VAT inspections as well as preparing and submitting VAT returns. The list is endless.
Having the right person delivering your legal cashiering service is vitally important. If you were looking at having an in-house cashier, you’d have to take time recruiting, vetting, training, providing cover for any absences. Add in the costs for computers, software, pensions and wages, the cost of having an in-house cashier continues to increase. Combine that with the time put into recruiting and managing the cashier, it goes to show that someone’s time will be heavily constrained, preventing them from conducting their daily business.
By outsourcing the legal cashiering service, you are introduced to a talent and knowledge pool of people who can provide cashiering support every day, their training and management needs are taken away from you. They also ensure that you remain compliant with the SRA, CLC and the Law Society of Scotland.
What is the cost benefit of outsourcing?
- Maximise your resource: Benefit from a cost based on the actual activity and skill level your firm requires, rather than having to fund sufficient senior cashiering resource to deal with complex, high-risk elements, while using that same resource to carry out the more mundane, junior tasks.
- Access expertise and insights: Get access to better forecasting data which provides valuable business insights that can be used to identify trends and inform your overall business strategy.
- Improve your cashflow: Ensure an up-to-date log of case-related fees and expenses for regular claim back purposes – resulting in a healthier cash flow.
- Reduce your exposure to risk: An outsourced partner will have invested heavily in security measures and will assume compliance responsibility.
- Improve efficiency and productivity: Free your employees to get on with what they do best and benefit from more streamlined processes.
- Become more agile: Scale resource up and down as you need it, without the hassle of hiring and firing employees.
Outsourcing this part of the business, frees up lawyers to do what they do best, win business and earn fees. This enables your business to grow.
About The Cashroom
When the property market is causing enough headaches for legal service professionals, The Cashroom is ready to help ease the pressure on your law firm by ensuring compliance with the solicitor’s accounts rules, saving firms money and providing accurate and timely management accounts and management information.
Let The Cashroom worry about your firm’s legal cashier and payroll services so that your firm can focus its resources and time on providing expert legal advice to the consumer. Additionally, our management accounts and management information on budgets, cash flow projections and monthly management allow you to reflect on the work that has been completed and accurately predict where your firm is going in the future.