Over the years we have been asked a couple of things repeatedly. Will you ever build your own case management system and will you ever offer your services to professions other than lawyers – in short, no.

We are experts in legal accounting. Cashroom eats, sleeps, and breathes legal accounting. We strive to ensure we are the most efficient, compliant and risk-free provider in the UK and doing this deserves dedication. Our clients deserve our full attention, and they get that. However, we know that lawyers need many other solutions to run a successful firm as well as our services and a good practice management system is one of these things. We log into the systems of over 230 law firms so we can safely say we know a lot about systems – the good, bad and the ugly!

With direct access to firms’ chosen platforms through our Cashroom portal, our outsourced specialists can offer support with Legal Cashiering, Management Accounts, Statutory Accounts and Tax Returns, Payroll and Credit Control.

The day of the “jack of all trades” are gone. Businesses who say they can do it all aren’t necessarily the best.

It’s about experts linking and collaborating to provide the best service for their clients. It is the correct skillful person completing the right task. Some companies do try to do it all and can succeed to an extent, but the world has evolved, and you can succeed better by collaborating with others.

If you are clever about it then it can look like you provide everything to create that one-stop shop but in fact you are integrating with others who are the experts in that area. Providing an easy one point of contact for clients but with the best service too.

The best software providers allow for integrations to create the best product for their client.

Look at Sky television. It has embraced Netflix and Amazon Prime by giving us access to their Apps all via our Sky subscription. The most obvious one is of course Apple. How many apps do you have on your phone because they have allowed EVERYONE to integrate with them. They give you everything you need on your device.

We want to work with the best and that is why we are enhancing our clients experience further by building integrations with the best practice management systems not just in the UK but in the world. Providing the best service is crucial and integrating with these systems enhances our client’s user experience.

Clio and Denovo have integrated with Cashroom. This allows firms to use their excellent case management systems alongside our leading legal accounting service. And we have more integrations being worked on right now. In-fact, LEAP and Klyant integrations will be launching really soon too.

When great teams come together, magic happens. Don’t fear collaboration, embrace it, and build an amazing business that provides the best service possible.

Cashroom are freeing lawyers from the complexities of Legal Accounting.

Emma O’Day

The leading outsourced legal accounting, cashiering and compliance expert has partnered with four popular practice management systems (PMS). This is to offer seamless legal accounting support for firms across the UK.

Cashroom has announced new integrations with Clio, Denovo, Klyant, and coming very soon LEAP, which are some of the country’s most intelligent legal technology systems helping to shape the digital future of law firms.

These latest updates to the provider’s industry-leading software save legal practices time and money. It is done by efficiently updating management systems with up-to-date financial data in a compliant and secure way.

Cashroom believes that a firm should be able to choose best in class from services and technology. Their system agnostic approach means they can support all the leading systems, with market-leading legal accounting services. Therefore, enabling firms to choose more modern, often cloud-based practice management systems.  Cashroom continues to remain system agnostic with no alliance to any one system. This allows all legal accounting via the best system for the law firm.

With direct access to firms’ chosen platforms through the Cashroom portal, outsourced specialists can offer support with legal cashiering, management accounts, statutory accounts and tax returns, payroll and credit control.

Head of Product Development at Cashroom, Paul O’Day, said: “This is an exciting development and one that we’ve been working hard to achieve for several months. Law firms can now benefit from the ultimate in legal accounting efficiency. This a solution that links seamlessly between their PMS and our Cashroom portal.  Cashroom’s legal cashiers and accountants continue to support any system of your choosing – to provide the most secure, efficient and compliant service for firms they are using technology to enable their expert service.

“We take away the headache of compliance, supporting firms as they grow and future-proofing their operations in what is rapidly becoming a digital-focused industry.

There are many benefits to your law firm when using Cashroom. Cashroom portal dashboards offer simple visibility into a legal business and its client information. Our integrations reduce double-data entry and helps prevent human error. Client matters can be quickly accessed and the data flow to payment forms frees staff up to focus on more profitable tasks and improves the overall client experience.

Paul continued: “Automation between Cashroom and your PMS has the power to revolutionise how finance drives your legal business forward. In the current climate of day-to-day disruption and change, it can mean the difference between success and collapse.

These integrations are only phase one of an exciting roadmap to becoming a total one-stop solution for legal accounting. We have lots in the pipeline for further improvements and I look forward to sharing them with clients.”

Cashroom are freeing lawyers from the complexities of Legal Accounting.

For more information about how Cashroom services and integrations could help your law firm remain compliant with the Solicitors Accounts Rules, reduce risk and practice more efficiently, visit www.thecashroom.co.uk/our-services/cashroom-partners/

For anyone considering starting up their own law firm or ABS there are three core elements to bear in mind. Those are –

• Ensure Compliance
• Create Efficiency
• Reduce Risk

Every decision you make should have those factors in mind.

Let me explain.

More than ever before the running of a law firm has to be seen as a business. Many existing law firms are seeking to redesign their operating model. They are considering what they should do about premises they already own. Law firms are wondering whether the Practice Management System (PMS) they have is good enough. They are interested in outsourcing elements of their business but don’t know where to start.

Often they are having to take half measures and compromise in some way on each of the 3 core elements I mentioned.

The beauty of a start up is that you start with the proverbial blank sheet of paper. No need for compromise, so what should you be looking at when you are planning?

Ensure compliance

You will need to go through a regulatory authorisation process. You will need to have systems and procedures in place that convince eg SRA or CLC that you will be operating compliantly. Top tips-

• Get advice from specialist consultants on the authorisation forms and processes – they are complex, and there is definitely a skill to completing them
• Consider using outsourcers for core areas where compliance is essential eg the firm’s finance function
• You’ll need a business plan, so get help from an expert legal sector accountant, with in depth relevant knowledge of structures and tax

Create Efficiency

You’ll be running a business! Make sure that your new firm will work smart. Have the right technology underpinning an attitude that says “We are here to do a great job for our clients, while at the same time maximising our profitability.” Top tips for achieving this –

• Take the time to understand what technology you will need. There are many PMSs out there but consider what you really need it for. Is it workflows? Cloud storage? Will the accounts element give you the reporting capability you’ll need to make business decisions? Watch some demos, and if need be ask independent experts to help you.
• Optimise your working processes – map those processes, and ensure you have the right level of person dealing with the right task. This will not only save you time and effort, but will create a better end user experience for your clients – vital in these days of Google reviews and Trustpilot.

Reduce risk

You’ll face numerous threats to the business – cyber security challenges, internal fraud, negligence, business continuity. Make sure that you consider these in detail from the outset and mitigate the risks. It will help you obtain the best possible PII premium, as well as helping you sleep at night. Top tips –

• Consider going for Cyber Essentials Plus rather than the basic accreditation. There are numerous organisations that can help you build the best, most cost effective and, crucially, resilient IT estate. Use their expertise.
• Make sure you vet new recruits carefully, and build monitoring and supervision processes which keep an eye on things. This isn’t just from a negative point of view – these processes should be part of a framework which supports your employees.
• Consider outsourcing key elements where the expertise required is not within your skill set – give someone else the supervision headache, and increase that business resilience by utilising external flexible resource.

There are many elements to consider when setting up a business, but if you keep those three in mind, you won’t go far wrong.

I came to a horrible realisation a few weeks ago.

It turns out that the last time I had a holiday of more than one or two days was last October. Nearly a year! And when I mentioned this to others, a surprising number of lawyers, suppliers and colleagues had similar stories to tell.

There seems to have been a period where a huge number of people just threw themselves into work, because there wasn’t much else to do.

The problem with that is that slowly but surely your reserves deplete and you become less effective, more easily distracted, stressed and in the end potentially burnt out.

I spoke with an expert on these things- Leah Steele, founder of Searching For Serenity, whose client base includes many people In the legal industry. She explained that burnout arises as a result of chronic workplace stress that hasn’t been successfully managed. She says “It’s important to take proper breaks from work. Planning relaxing, refuelling or energising activities is one of the best ways to support ourselves.”

The problem with working from home brings the additional risk that we close the laptop and then immediately start on home admin and garden work etc.

Leah says it’s important to give yourself permission to just enjoy your spare time.

I’ve spoken with lots of lawyers, particularly in smaller practices, where they find it incredibly difficult to switch off. In one recent conversation it transpired that the managing partner of a small but high quality boutique law firm was doing the firm’s cashiering herself at the weekend. Not surprisingly she was shattered!

I think holidays are a bit like a power up on a computer game. It’s entirely possible to crawl along with very low energy reserves, believing that it’s for the best. AT that stage however, even the slightest problem feels insurmountable, and a sudden need for urgency can feel overwhelming.  However a proper break with, dare I say it, minimal use of mobile phones and emails will mean that your reserves are fully restored, and once past the initial pile of emails waiting for you on your return, your focus will be back. You’ll be less likely to snap at junior staff. Your attention to detail will be there again. You will have rediscovered your mojo!

Another thing- have two weeks off if possible. I spoke with a Managing Partner today who said that the first week of two week holidays was about healing. The second was when they really felt like they were getting back to optimal mental and physical energy levels.

So is that it, Holt? You may say….”Have a holiday”. Hardly startling words of wisdom.

You’re probably right…but then why are so many people not holidaying this year?

The Legal Sector Affinity Group (LSAG) publishes anti-money laundering (AML) guidance for firms each time regulations update, most recently in January 2021. Although the document is easy to read and well structured, it is still over 200 pages of guidance. So we’ve broken down a few of the key points for you below. And there’s good news for Amiqus clients; the Amiqus platform makes it much easier to follow the new guidance.

The 2021 LSAG AML guidance is based on 36 core principles. There was a lot of focus on:

• Vetting staff and beneficial owners, officers and managers (BOOMs)
• Firm wide risk assessments
• The need for enhanced due diligence (EDD)
• Source of funds and wealth checking
• Process documentation
• Electronic identity checking

That’s right, the new guidance includes a whole section (section 7) focused on electronic identity and verification (EID&V) services such as Amiqus. It’s no surprise that this is the case after a year of remote working and Amiqus excels at meeting their recommendations.

Let’s dive into the guidance. If you need a refresher on any of the acronyms, we’ve included a handy guide at the bottom of this article.

AML checking staff and BOOMs

The guidance suggests:

• Verifying the identities of BOOMs and checking for convictions of any of the offences under schedule 3 of the regulations
• Screening frontline AML staff both pre-employment and during employment
  • This screening may include criminal record checks, credit checks, adverse media checks, reference checking and electronic identity verification

How Amiqus can help you with this:

• You can run criminal record checks (Disclosure and DBS), photo ID checks and both identity reports and document transfers for proof of address through Amiqus to both verify the identity of BOOMs and check for convictions
• For AML frontline staff vetting you can additionally run credit reports, screening for politically exposed persons (PEPs), sanctions and adverse media,  as well as pre-employment information and reference gathering
• You can set up a secondary Amiqus account with separate user access to keep staff data separate from client data at no extra cost

Risk assessment on clients and firm wide

The guidance suggests:

• Conducting risk assessments on all new clients and matters.
• Completing a firm wide risk assessment (PWRA).

How Amiqus can help you with this:

• You can carry out a client’s risk assessment on their file within Amiqus. So risk assessments can be completed alongside CDD information and stored in the same place, all on the same date and time stamped audit trail.
• Amiqus helps with writing firm wide risk assessments by making the design, documentation and implementation of your processes easier

Customer and enhanced due diligence (CDD/EDD)

The guidance suggests:

• Conducting CDD on all new clients
• Regularly reviewing CDD, and where risk appropriate regularly updating it
• Applying ongoing monitoring where appropriate to risk level
• Establishing procedures to identify PEPs
• Applying EDD and ongoing monitoring to all high risk clients
• Considering reliance on another firm’s CDD as a risk factor

How Amiqus can help you with this:

• Using Amiqus, you can complete customisable international photo ID verification and watchlist checks (for PEPs, sanctions and adverse media screening), as well as UK-only identity report and banking information checks; this enables the highest level of CDD/EDD
• The new requirement to complete full KYC checks on all clients is quick and simple to implement through Amiqus.
• This reduces any need for another firm’s CDD, reduces your risk and makes it simple to renew CDD/EDD on a client when needed
• Our watchlist check’s ‘ongoing monitoring’ option automatically rescans PEPs, sanctions and adverse media databases every day; it’s a powerful tool for keeping CDD/EDD information up to date and identifying high risk clients

Source of funds and source of wealth checking

The guidance suggests:

• It’s good practice to check source of funds (even if the matter is an occasional transaction)
• Bank statements and other relevant documentation are useful for establishing source of funds or source of wealth
• Ensuring you establish the reason or provenance for funds
• Conducting source of funds and source of wealth checks on PEPs or as part of EDD; it also considers these checks good practice as part of holistic CDD in general

How Amiqus can help you with this:

• You can gather and verify bank account information and transaction history securely using our banking information check
• Banking information is provided in an electronic format so it’s even filterable by transaction type and amount
• Our custom forms and document request features mean you can establish a given reason for funds and combined with the banking information check offer strong support for source of funds/wealth investigation

Documenting processes, writing clear policies, reporting obligations and auditing

The guidance suggests:

• That you are able to demonstrate your risk assessment and CDD processes as relates to any client or matter (‘if in doubt, write it down’)
• Documenting your policies, controls and procedures (PCPs), and records/audit trails demonstrating compliance with these PCPs
• Maintaining and retaining accurate, comprehensive records to help meet your reporting obligations and any compliance with law enforcement

How Amiqus can help you with this:

• Amiqus is easy to use, reducing risk of user error and data is stored securely in a clear format
• This enables accurate, consistent conduction, documentation and evidencing of your AML processes and CDD
• It also helps you write clear policies, controls and procedures (PCPs)
• We make your audits simpler and faster; all changes to clients’ files and custom notes are stored on a dated and time stamped audit trail called an activity log.
• Auditors can also be added as read only users, meaning client data can be kept secure within Amiqus’ double encrypted system
• This will also help you to meet reporting obligations or comply with law enforcement

Electronic identity and verification services

The guidance suggests:

• Ensuring both positive and negative sources of information are used
• That results are transparent and easy to understand so that you can accurately make risk based decisions
• Accessible training resources are available for staff
• Checks are customisable to increase stringency with risk
• Data can be analysed and ‘dip sampled’ for reliability and consistency

How Amiqus can help you with this:

• Amiqus meets all of this guidance and in many cases exceeds the recommendations
• Combining Amiqus checks allows you to verify identities at the highest level (AV3A) of the UK government’s framework for electronic identification

Hopefully this shines some light on how Amiqus can help with meeting the guidance suggestions but it doesn’t mention the best part: Amiqus is a living solution to your compliance needs. This means we are always improving our product to better support you and align with new guidance.

If you have questions about how Amiqus can help you to follow the LSAG guidance you can join one of our free AML training webinars and ask us in a live Q+A session.

Reference

Acronym-weary? Here’s our handy guide:

LSAG – Legal Sector Affinity Group

AML – anti-money laundering

BOOM – beneficial owner, officer, or manager

CDD/EDD – customer/enhanced due diligence

EID&V – electronic identity and verification

PEP – politically exposed person

PWRA – practice wide risk assessment

KYC – know your client/customer

PCPs – policies, controls and procedures

Written by Henry Alman.

If you think the Amiqus platform could help you with AML compliance, contact Gregor@amiqus.co or visit https://amiqus.co/

Throughout the pandemic, the encouragement has been to stay at home; this has meant that we haven’t seen people in the way we would have done before. Colleagues, clients, prospects and other business contacts. Whilst some may feel that this has had no impact on their professional relationships, many know they have focused just on what is ‘necessary’ to get the job done. Others feel that it just hasn’t been the same. Indeed you can’t engage with someone as effectively online or on the phone. A lot of body language communication is lost.

At best, many have focused only on the key people around them. Those who help them do their job and the clients they need to deliver for. As we hopefully exit the worst of the pandemic, now is the time to reassess. Which relationships do you and your team need to focus on?

In a service business, it is the people and relationships that make all the difference. Services are often highly comparable between companies.

In this article, I want to focus on external relationship building. So, whether you are reading this with yourself or your team in mind, read on.

 Just the word ‘networking’ sends shivers down many people’s spines and indeed very few people genuinely love it. However, it is essential that client facing individuals are confident and skilled enough to get to know people in the marketplace. This is predominantly done at events, both in person and online. Once people start going to some events, they hear about others. These are often unadvertised and if they build the right relationships, they are more likely to get invited to those which are often the real gems.

Throughout the pandemic of course it has been entirely online. It’s interesting to think about what has happened in this time. Have online events worked equally as well? Have they been avoided? Did you and others at work focus on deepening relationships with those you knew already? Or, did you really do no external network building at all?

A reminder of why you your team needs to network – top 5 reasons

1. As I said, in a service business, it is the people that differentiate the business or firm, therefore they need to be visible to the market. The more people you have known and able to build relationships with potential clients and referrers, the better.
2. Never mind new business, often individuals get invited to events by clients, they need to have the skills to navigate those well and get to know more people within the client.
3. It builds confidence interacting with others and getting used to speaking about the business they work for and their role in it – this confidence will roll over to benefit other areas of their work.
4. It is not good for a business to rely on just a few people to build the reputation of the company or firm, what happens when they leave/retire? Also, if it is just the more senior people then the market doesn’t get to see the diversity of people who work for the organisation.
5. The individuals will learn more about the market place they are in, related/peripheral ones and those they serve if they go out and engage with people which can shape their work and help them service clients better.

How to get you and your team motivated to get (re)started

• Rather than make it just another task to do, make sure all are aware of the benefits – for them personally, as well as the organisation. This article from Forbes explains the personal benefits really well.
• Get experienced networkers in the team to share the type of events they attend and their positive experiences, including tangible clients it has led to the company or firm having.
• Make sure everyone is clear on what your company or firm offers, not just in their area but beyond, so they equipped. A lot of what puts people off networking is the fear of not knowing what to say.
• To this end, remind them networking is simply about engaging with other humans and the conversation should start on that basis.
• Encourage even junior people to network; the younger the skill is built, the easier it will be. It is better to increase people’s confidence before they have specific business development responsibility.
• Suggest they start slowly and find what suits them including type of event, format and time of day.
• Make sure they are equipped with networking skills – considering the impact they have on others, how to build rapport and what to do after a networking event. This will help them network positively and give them confidence too.

Networking shouldn’t be seen as a ‘dark art’ that only a few can master.

Which members of your team could most benefit? Which ones can you support to start developing their network? This longer article on networking at events may be helpful too.

I offer workshops and one-to-one development work in this area, as well as many other ‘non-technical’ skill areas, so if you are interested in expert help do contact me for a conversation. There is also more information on this page.

Networking is one of my nine (often neglected) skills. I see these as pivotal to a team having to make sure a company or firm has competitive edge. You can download the free guide with a page on each here. If you are from a law firm, there is a specific version of the same guide here.

To think further about your individual career, click here to request my Nine Skills needed for career success.

About the author

Joanna Gaudoin, Inside Out Image (https://insideoutimage.co.uk/) specialises in helping ambitious professionals and their organisations in professional and financial services improve performance and achieve their goals.

She does this by helping them master and strategically use the business skills of Personal Impact and Relationship Management. These skills are necessary for professional success.

Before establishing Inside Out Image, Joanna worked in marketing and consultancy in large corporates. She understands the business world and its challenges. She now helps organisations and individuals understand how to succeed in it.

No matter where you work, things have changed in the last 18 months.

We are all rethinking the way things were done before. Perhaps not doing certain things that we now realise took up time or didn’t add any value to our business. We are possibly continuing to do some things but now doing them in a different way because it works better. I can’t think of any profession that hasn’t had to flex in the last year!

Events and face to face meetings come back onto my agenda. I have now been considering what have we really missed out on. As well as, what do we need to get back to.

There were some truly great attempts at events from home however some things as well organised and attempted as they were, are just better face to face.

We are approaching our first face to face awards event in September.

Cashroom are delighted that we have received nominations for two of The Scottish Legal Awards. Support Team of the Year and the Legal Technology Award. Pre-covid my opinion of these events was that they were a bit of a jolly. You spent time travelling there and back to the event out of the working day and then basically had a night out with your colleagues or possibly some client entertaining. Not a hardship however I probably never truly thought about the real benefit of these events and this year I think they mean just that bit more.

Some professions have clearly had a tougher time than others but that aside, it’s been rough. With your work colleagues you have virtually been inside their home, probably seen various room in the house, met some family members and maybe even tried to help with lockdown and home-schooling tips over teams.

We have all been pretty stressed out at different times, maybe we were a bit shorter with people than we would normally be. Maybe we couldn’t support each other like we normal do as the mental load of home life was just too much. Maybe we all even resented each other a little bit feeling like others had it just that bit easier than what you were dealing with. Awards aside, the prospect of getting around one big table with the people you work with and raising a glass to say thank you for being there for each other and that you made it is something to be excited and proud about!

The award nominations however are crucial here as it is a thoroughly well-deserved pat on the back.

Despite the hardships, the stress and the world going crazy we did a good job, in-fact we did a great job! We rallied, we problem solved, we came together as a team and supported the industry more than ever before. Our technology helped us do this securely and efficiently. Ultimately though, the people at Cashroom just ‘got stuck in’ and stayed that way and persevered for a year. The team at Cashroom didn’t just ‘do their job’, everyone truly went above and beyond. The property market went mad and we had our busiest two months ever! Cashroom transferred 1.2 billion pounds of client money in March and 1.6 billion pounds of client money in June. Despite this being at the end of a crazy year we absolutely smashed it. Securely, efficiently, and compliantly!

Awards aside, now is the time to step back and blow your own trumpet. You made it and your team rallied. You survived a period in history that people will look back and talk about. It might have been a bit messy but you have come out the other side. No matter if Cashroom win an award at any of the events this year. We are going to go out together and raise a glass to not just surviving – we thrived!

Individuals and businesses need to adapt to the pandemic-related changes and for some ambitious entrepreneurs within the legal system, this means leaving their legal firms and branching out to begin solo ventures, which can be daunting. When it comes to Cloud-based legal IT Solutions for start-up legal firms, the message from the team at Sussex-based Microsoft Partner, Extech Cloud, is “You are not alone”.

Extech Cloud has legal IT knowledge and experience

Despite the fact the legal industry is ahead in some areas, when it comes to IT systems and IT support, we have found it’s often lagging behind. This could be due to consultants and previous IT companies opting for what’s easier, instead of what’s best for the law firm. Or simply a lack of the necessary IT knowledge and expertise.

Extech Cloud provides tailored and SRA compliant legal IT services for law firms. We have completed hundreds of cloud transformation projects, including providing IT Cloud Support for legal firms. The Extech Cloud team is always on-hand to provide legal industry businesses with everything they need. We work closely with clients to help them take steps towards a new way of working, through cloud transformation.

Extech Cloud supports start-up businesses with IT solutions

We also understand what it’s like to start up a business on your own. Not only do we provide Cloud IT solutions to many start-up businesses, but Managing Director of Extech Cloud, Andrew Hookway, initially ran a large corporate firm for 10 years, before deciding to go his own way and creating Extech Cloud.

How can Extech Cloud support your start-up legal firm’s IT system?

Do you need to transfer all work to the cloud? Do you need to find new and innovative solutions for working remotely? We possess the IT knowledge and expertise required to run a successful start-up legal business. Extech Cloud provides customers with all necessary services under one roof. It can help new businesses get up and running in no time.

Concerns such as setting up with the right equipment, cabling options, or a more significant threat such as cybersecurity are inevitable when running your own business. However, the team at Extech Cloud are experts in helping the legal sector to adopt new technologies. They keep ahead of competition.

Can Extech Cloud help large law firms with more complex IT infrastructure?

Although the team at Extech Cloud works with start-ups and small businesses, we have also completed digital transformations for much larger legal firms such as Hunters Law LLP. The large legal firm contacted Extech Cloud looking for a solution to upgrade its servers and overall infrastructure, when they were informed it was not possible by another IT company.

The team of experts at Extech Cloud has spent years working on, and refining, the journey to the cloud. This makes it a simple and smooth transition for businesses, like Hunters Law. It also helps smaller start-up legal firms, to work effectively at anytime, anywhere. To date, the team has completed hundreds of cloud transformation projects, saving customers thousands of pounds, improving their overall performance, and making their staff happier as a result.

Contact Extech Cloud for IT Support today

We don’t just work with legal firms; we have helped companies in a range of industry sectors with Cloud IT solutions. If you’re thinking about transitioning your business to the cloud and you need some support, talk to an Extech Cloud specialist and transform your business for the better. You can call 01444 443200, email info@extech.co.uk or fill out our contact form for a call back.

Has there ever been a time more fraught with difficulty for your friendly neighbourhood lawyer?

KAPOW! Connectivity and technology issues.

As the pandemic struck, firms had to adapt speedily to have people working remotely from each other, and from their clients. Many were not ready to do anything other than send people home with a laptop. The risk inherent in this approach was massive- there was cyber threat due to the lack of secure tech being utilised. There were issues around monitoring and supervision. There were few procedures in place to enable collaboration between colleagues, and between fee earners and the finance function of the firm.

BLAM! Resourcing issues.

People were furloughed. People were isolating. Clients went quiet. Then suddenly clients started demanding more services than ever. The conveyancing world reacted to the Stamp Duty holiday and firms were swamped with work. People continued to be off ill occasionally, and the work kept pouring in. The original Stamp Duty holiday was extended, which meant a huge spike of activity in March, and the respite that had been expected after that original deadline never landed. There was huge risk of burnout. There were problems resourcing the spikes of activity from both a fee earner and finance function perspective.

WHAMMY! Cyber Fraud.

Aside from the tech risks from cyber criminals, there were also significant increases in Cyber crime activity. Those dastardly delinquents were seeing the chaos of Covid as an opportunity. The pace at which lawyers were having to work. The pressure from clients wanting to complete before deadlines. The number of financial transactions, and the sheer scale of the funds moving around- all of these had the Cyber villains salivating.

ZING! Client satisfaction challenges.

There were the initial challenges around communication- telephony models were not optimal, and clients and prospective clients struggled to contact their lawyer. Then there were problems of efficiency- when it comes down to it, Mr and Mrs Bloggs want to

move house and they don’t expect it to take six months. They don’t care that there are search backlogs. They want the keys to the new house! On the day of completion, they don’t expect to be sat on the driveway of their new dream home, waiting till five pm for the keys because the firm cannot process the money transactions swiftly enough.

All of these things are risks.

All of them create financial risks, security risks, resourcing risks, reputational risks, negligence risks.

And in the background for all these challenges which are stressful in themselves, there is the impact each will have on the price of the firm’s safety net- their PII policy. In an already hard market, firms need to have a credible answer on these issues. You need to give the insurer and brokers the compelling story that will enable them to achieve the best possible renewal terms for you. That review will look at the way the firm has been performing in all these areas, and they’ll also be interested in changes the firm has made to address any flaws.

Firms should be looking to mitigate risk by, for example, ensuring their internal and external communications are secure; create processes for the safe (but speedy) transfer of client monies; and flag to their PI insurer the steps they are taking to reduce their risk profile.

Or… (and I’m baised!) they could send out the Cashroom Signal! We moved over £1.6bn of client money through our secure portal payment process for our client law firms during June, helping them deal with an unprecedented spike of activity and keep their own clients happy in the process.

Our team were true superheroes and we are looking forward to helping the market answer the challenges to come.

Check out Lockton Solicitors for more information.

WHAT NEXT FOR THE LEGAL SECTOR AND ITS ADVISERS

By Andrew Gregory, Leonard Curtis Legal

The Natwest Legal Report has just been published – an eighth deep dive into the sector – painting a 12 month picture of struggle and challenge for practice owners, but its mood is one of cautious optimism.

Reflecting in detail on the experiences of 40 law firms,  its headline findings revealed a 50% take up of CBILs and Bounce Back loans and almost all firms taking advantage of the Government’s furlough scheme.

It touched on difficulties faced by high street firms and sectoral pressures – the explosion in the domestic property market and impact on the corporate M&A sector – but it concluded that most law firms are in reasonably good shape.

Government support, of course, can mask wider funding issues that have been exacerbated by Covid. The general trend of larger banks moving away from the sector could make life difficult for law firms in the longer term. Especially those in financial distress.

Practice owners are now looking at the secondary lending market. While there are a number of vibrant emerging funders in alternative spaces, they do tend to be more expensive and asset-based. More often than not, these require the security of a personal guarantee.

There are two other very important factors which will impact the longer-term health of the sector. One is wage inflation and the other is the cost of professional indemnity insurance.

Wage inflation is a challenge

The pandemic has certainly made people think hard about their careers in the sector. We are seeing senior professionals in firms saying no to offers of partnership,  demands coming in round flexible working and others just wanting a lot more money as the well-skilled become rarer to find.

There is a real push on getting more people into the profession, but good candidates are scarce. This is prompting surprising offers – especially from US firms – for newly-qualified lawyers of up to £150k. This is giving even the London-based Magic Circle firms a run for their money. We are seeing this trend in Manchester too, which adds pressure to delivering profit.

Serious hardening of the PI insurance market

The increasing cost of professional indemnity insurance premiums (PI)  is also keeping practice owners awake at night. Most law firms renew this annually in either March or October. Last October there was an average 30% increase in premiums, which is a serious hardening of the market that could take weak firms down.

A lot are now scratching around to get their PI in place. There must be minimum cover of £3million for the majority of firms. The PI market has also seen a significant reduction on those insurers who are offering ‘top up’ cover to cover claims in excess of £3m.

So while law firms have tackled the specific challenges of Covid, there is plenty to keep practice owners focused on in the future and they need to keep their accountant advisers close as they navigate the immediate post-Covid landscape and look further ahead.

Value of help at an early stage

 Here at Leonard Curtis Legal, we place real focus on rescue and recovery rather than insolvency, so we’d like to think that these sort of challenges won’t take beleaguered firms down.

Fortunately, more and more partners in law firms are now starting to ask their professional advisers for help and at an early stage. And if they’re not yet, we hope they soon will be.

Accountants tend to be their first port of call, but often the assistance required in these unprecedented times is specialist and non-core, requiring a wider multi-disciplinary approach that’s best able to support all areas of the business.

By approaching us, law firm partners and their accountants gain invaluable access to a much wider range of specialist solutions including; corporate restructuring, personal debt advice, equity and debt finance raising for SMEs, cashflow optimisation, property solutions and legal services. This puts all clients in the very safest of hands.

Our legal sector specialist expertise

We’re specialists in the legal services sector which, in the past 20 years, has seen significant growth. However, it’s also seen change and for some, many challenges have presented risks for the business. In some cases, these risks have also extended to the individuals behind these firms.

But we understand the fast-paced changes to the regulatory environment. As an owner-managed business ourselves – Leonard Curtis Business Solutions Group employs over 240 people across 18 regional offices. So, we have the same challenges. But we also have the expertise to navigate – and support our clients – through what can sometimes be tough times, and out the other side.

Having directors who have previously held senior management positions within large law firms is a real attraction for our clients, as it means we have a thorough understanding of how companies – whatever their scale and scope – operate and the pressures they face. As a result, our client portfolio includes law firms, solicitors, barristers, advisors to the sector, banks, specialist funders to and investors in the sector.

How we work

Upon appointment and case review, we provide Group-wide advice on the financial overview, WIP, debtors and client engagements.  Also, we undertake reviews on the structure of the firm. LLP, company, sole practitioner and ABS, for example – all require a tailored approach.

We also enjoy strong relationships with key stakeholders, banks, litigation funders and other lenders. This means we have access to the most appropriate solutions for each firm. We most certainly don’t adopt a ‘one size fits all’ approach here.

And we don’t just work with established firms experiencing any level of financial distress. We also provide consultancy advice for start-ups, through to medium to large law firms. We have strong credentials in securing investment for new entrants into the market, as well as researching – and then integrating – law firm mergers and acquisitions.

For further information, contact Andrew Gregory on Andrew.Gregory@leonardcurtislegal.co.uk or visit https://www.leonardcurtislegal.co.uk/.

Last week I attended the Scottish Open. First things first, it was absolutely wonderful to be back out at a sporting event and to be perfectly honest with the restricted numbers it meant viewing was better than it would have previously been – the sun was shining and to be out walking The Renaissance Club for a day was a delight!

With me was my husband and son – now we wouldn’t be at such an event if we were not golf fans. My five-year-old LOVES everything golf. Playing, watching, talking golf and he had the time of his life. As you may expect from a child, he has his ‘favourites’, Rory McIlroy and Tommy Fleetwood. They were both playing and so we dutifully followed the groups both of these men were playing with so my son could watch his heroes.

As I stood watching I started thinking – wasn’t it amazing that this was their job?

If you are remotely into golf you can’t help but feel a bit of awe that these men get to go around the most beautiful spots in the world (golf lover or not you cannot undermine the scenery and beauty of some courses) and play the game for a living. I am of course romanticising it here as no doubt it has its challenges but for simplicity just go with me.

I was wondering how I would feel if I had thousands of spectators watching me while I worked and although this would be extremely dull for anyone to watch I wondered how I would cope. These professionals appeared to zone into their game and have absolutely no awareness of what was going on – in-fact a fan walked right onto a tee and took a golf club out of Rory McIlroys bag and managed to take a few practice shots before anyone did anything, every team member up there was in the zone. If you missed that the story it’s here.

But I got to see cracks, a few chips in the armour if you will and these were the golden moments of the day.

Anyone with children knows they aren’t naturally quiet beings, in fact they are the opposite! Thankfully my son knows on the golf course to be quiet and behave appropriately. However, watching his heroes there were a couple of moments he couldn’t quite resist.

Tommy Fleetwood had just hit a drive and was charging down the fairway completely focused on his next shot and a little shout came out of the quiet ‘Come on Tommy, you can do it’ from my son. Tommy looked up, smiled and gave him a thumbs up – recognition for my boy and his day was made. It was a fleeting moment in Tommy’s ‘working day’ but he took that moment to appreciate and acknowledge the remark. He was busy and playing for the winner’s share of $1,333,330 however he took that moment to say thank you.

Throughout the day my son was thrown balls from many of the professionals and given a smile or a wave. Just a moment for these men at the end of their working day. A quick thank you for his support and for being there. This was the end of the golf course and some of these men now knew they had zero chance of even getting a cut of the prize money. They were probably tired and frustrated at the end of their day however they still said thank you to fans.

So why did this strike me as something to write about?

It was that feelings provoked by the gratitude from my son. He proudly announced it was the best day ever. You couldn’t remove the smile from his face if you tried. Players acknowledging him and saying thank you meant he loved the game a little bit more. He was even more passionate about golf. He came home and wanted to go straight out on the course to practice.

As adults we no longer receive reminders from our parents or adults to watch our P’s and Q’s. But is it something we forget along the way? Do we just expect colleagues and clients to deliver stuff to us without even muttering a simple thank-you? Or if someone has really gone above and beyond, do you take the moment to appreciate it more than just a quick thank you in an email?

Last month we processed over 1.6 billion pounds of client payments – the stamp duty deadline resulted in an extremely busy time for the market.

Our teams did their job and processed these securely and accurately and numerous clients came back, unprompted, with some really nice thank you messages. We have shared these EVERYWHERE. Internally on our Portal homepage for all staff to see and publicly for the market to see. Again, I am harping on about it here because hearing and seeing someone say thank you is so important.

We all say thank you in day-to-day life but once in a while – take that moment. Lift your hat and throw someone a golf ball if you will. You might end up motivating someone so much they go away and practice their putting.

Emma O’Day

*And just incase you think a 5 year old is too young to golf, here he is in action