Stamp Duty – a Nightmare!
I’m considering moving house.
It’s an arduous process, and the last few months’ restrictions have (to my secret delight) put the brakes on our plans. There were always factors I could use to slow things down sneakily- packing up the house would be a nightmare, we’re too busy to go house hunting etc. But my trump card was always Stamp Duty.
“What a waste of money!” I would say.
And it was a pretty unarguable point. Yesterday’s announcement by Rishi Sunak that there will be a Stamp Duty ‘holiday’ for properties purchased up to £500,000 was a hammer blow to my delaying tactics. Scotland followed with an announcement today that the starting point for land and buildings transaction tax (LBTT) is to rise from £145,000 to £250,000.
Last evening was spent glued to Rightmove.
We were back house hunting with a vengeance. Many of the house details contain virtual tours, and with the added tools of google maps and satellite view. It’s far easier to house hunt from the sofa than it used to be. Dagnabbit!!
This morning we have had responses from a number of the estate agents with details and proposed viewing times. I do get the impression that estate agents are struggling to balance their furloughing of staff with the upturn in interest.
So I may be in my own private hell as a result of Mr Sunak’s ‘generosity’. However it seems clear that the housing market will see a boost from this announcement. Our friends in the legal sector with property sector departments will no doubt be delighted.
From The Cashroom’s point of view, we stand ready with our huge flexible resources to support our existing clients with our cashiering service. We know that our processes are particularly popular for conveyancing firms. We move money quickly and securely, and fit into a slick process of payment authorisation which our clients love. Any firms who aren’t yet clients (why aren’t you?!) we would be delighted to chat with.
So what?
What I’m secretly hoping is that we will be inundated with new enquiries and as a result I’ll be able to recycle the “too busy to move house” excuse.
So come on law firms….help a fella out!
Alex Holt, Director of Business Development
“5 Years of Innovation in the next 18 months” – Part 4
In this last part of the series, I’m going to talk a little about the Cashroom. What are we doing to change things up and innovate in the post COVID environment.
First, a quick recap on where we are, and how the lockdown affected us.
We decided to “lockdown” about a week before the official announcement. We initiated our business continuity plan and went from having 85 people fully operational in the office, to having 85 people fully operational at home, in just over a week. I’m not going to pretend it was easy (it wasn’t), nor that it went entirely smoothly (it didn’t), but we did it and I think (hope!) most of our clients didn’t noticed any service disruption as a result of the transition.
When the government announced their financial support, we knew we had to take advantage of it. Volumes were dropping across out client base, and some clients were finding it tough. So, while it broke my heart to do so, we made the difficult decision to furlough 31 members of staff. I spoke to them all personally, explained the situation, assured them we would do our best to make sure they all came back, and spent the rest of the evening drinking heavily!
Also like many of our clients, we (successfully) applied for a COVID Business Interruption Loan, took advantage of the VAT deferral, and negotiated with our creditors.
Long story short, we are emerging from lockdown, blinking in the sunlight, and preparing for the new normal.
So what are we doing?
Return from Furlough
As of the beginning of July, we’re bringing all staff back from furlough, at least part time.
We’re not doing it because we think work volumes will have returned by then. We’re doing it to free up “idle” capacity in the business to be able to work on all the initiatives and projects we have underway that never seem to get the attention they need.
You all know what I’m talking about, the change initiative that never seems to quite get over the line, because those involved have “day jobs” delivering client services that always take priority. Well, by bring everybody back from furlough before we “need” them, we hope to create the capacity we need to drive through that change.
And talking about change…!
Premises
The lease on one of our offices is up at the end of August. We have decided not to renew or replace it. We will lose around 40% of our office space. The enforced home working has shown that we do not need everybody in one place – home working … works!
In the short to medium term, we will need to make changes around booking desks, social distancing, “Hot-desking” and deep cleaning, but in the longer time we plan to have only around 50% of our workforce in the “office” at any one time.
Technology
We have recently completed a deal to acquire a small technology business, bringing in house, the expertise we have to date outsourced.
An odd move for an outsourcing business, you might think. However, outsourcing works when you’re outsourcing a non-core function (e.g. your accounts team!). Over the last year or so it’s become clear that technology is in fact a core function at the Cashroom, and crucial to our future growth and development.
And talking about technology…!
Automation
Over the next few weeks we’re trialling a new development to our client Portal. It takes advantage of the new Open Banking regulations to automatically set up payments based on instructions received from clients into the Portal. That means there is no need for our cashiers to log onto the client’s bank account, to set up the payment, increasing accuracy and security.
That’s only one example of how future developments of our technology platform will drive efficiency and accuracy.
It seems we’re a “Fintech” business now!
So, we’re being bold, and are trying to innovative and creative. We know not everything we try will succeeded, and that’s OK, because we’ve given ourselves permission to “fail” as long as we do it fast, in a safe environment, and learn.
“Gulp…!”
David Calder, Managing Director at The Cashroom Ltd
The Cashroom acquires Kanbaro Limited
At the Cashroom our goal is to revolutionise legal accounting world-wide, and we have recently taken a big step towards achieving that goal.
Kanbaro Limited is the company behind developing and maintaining our Portal. For those that don’t know, the Portal is the IT platform on which we run the majority of our business. It securely and efficiently deals with client communication, task management and increasingly the automation of many of our processes.
The Portal is critical to what we do and was one of the main reasons we were able to quickly and easily, transition to remote working when the lockdown was announced.
However, it is clear that the pace of technological change in our market will accelerate – driven in part by the opportunities presented by Open Banking and the automation of tasks and processes. Over the next few years the Portal will revolutionise the way we work, and we need to increase the scope and pace of our technology development
So, with that in mind, a few months ago we reached agreement with the shareholders of Kanbaro to acquire their business along with all its IP. I’m happy to say that the deal has now completed, and Kanbaro Limited is a wholly owned subsidiary of the Cashroom. One of the Directors, Paul O’Day will join the Cashroom as Head of Product Development.
This is a significant step forward for the Cashroom. Having an in-house development capacity will allow us to move forward more quickly with a number of exciting technology projects, taking full advantage of the opportunities presented by Open Banking, process automation, and creating our own published API allowing the integration of our Portal with other systems.
In turn this will increase efficiency, accuracy and security for all our clients… The Cashroom is about to become even faster, even more accurate and even more secure!
In addition, consolidating all the IP under one ownership will allow us to exploit that technology world-wide.
Our goal is to revolutionise legal accounting world-wide after all!
Exciting times.
David Calder, Managing Director at The Cashroom Ltd
“5 Years of Innovation in the next 18 months” – Part 3
So, to recap – business are facing unprecedented change forced on us by the COVID pandemic, and the lockdown. We’re being forced to make big changes, fast …. and we really don’t like it!
We’re being challenged to break things and make them better.
So what might a law firm think about?
Sales Process
Do you have a sales process that is rigorous, data driven and measurable? Do you know where your clients come from? How do they find you? Do you have a process that takes them (in a systematic and trackable way) from enquiry to closed?
A couple of years ago, we were using Hubspot, an “off the shelf” sales tools, but it wasn’t quite working for us. In response we developed a module for our Portal (the tool we use to communicate with our clients). We created a Sales Pipeline, represented as a Kanban Chart, showing all our current prospects and their progress towards a sale.
It allows us to track progress, hold our sales team to account on that progress, and provide data for analysis and insight.
(For clients wondering, it’s a module available for internal use, and not displayed to clients! Get in touch if you want to know more.)
Is there scope to develop or improve your sales process? How does it need to change, now that face to face interaction is much less common?
Management Accounts
Do you know exactly where your business is? Do you know how much you made last month, which department/lawyer made it, and how that compares to the position last year? How much cash will you have in the bank next month, in 3 months, in a year? And can you “flex” these projections, taking into account all the uncertainties we face?
I’m embarrassed to admit that, before I met Catherine (the Cashroom’s founder, our Chariman, and from the outset, my Finance Director in a previous life as managing partner of a law firm), I didn’t know the difference between profit and cash, a balance sheet was a mystery, and I had never looked at a cashflow projection in my life!
But I suspect I wasn’t the only one, and I’m probably still not. If you’re one of these people (or suspect you might be(!)) the most important innovation you can make in the post COVID business world, is to have prepared regular, reliable and helpful management accounts.
Reliable and up to date management accounts and management information makes everything easier. It makes the uncertain, more certain and makes it easier to deliver changes and innovation – because, if you know where you are, working out where you’re going, how to get there, and what you need on the journey, is so much easier.
Business Processes Improvement
Is there something in your business that drives you nuts? A process or a procedure that’s grown up over time, driven by “its good enough for now”, with no regard to the bigger picture? Well sort it now!
Even if its “OK” ….. “”if it’s not broken, break it and make its better”!
And, if it’s got anything to do with the flow of money and cash through your business, how you run your accounts team, and how you ensure compliance with the rules … we can help!
David Calder, Managing Director at The Cashroom Ltd
For more information about our services.
“5 Years of Innovation in the next 18 months” – Part 2
In my last blog post I talked about innovation, and how facing the post COVID world has forced “5 years of innovation in 18 months”. And I admitted to being uneasy about facing that challenge.
Well, let me share a webinar that was shared with me (fair warning, not for those who are offended by the odd expletive!)
TLDR – we need to become comfortable with uncertainty. We need to come up with loads of ideas, and accept that most of them are rubbish, and we need to be happy to fail, and get it wrong. Most importantly, we need to let people know it’s OK (even good) to screw up and get things wrong, as long as we learn from it.
If things aren’t broken, we need to break them and make them, better!
Scary stuff …. and easy to dismiss as the ramblings of a “swivel eyed loon”, that just doesn’t understand. But, be honest ….. is your model perfect, is it optimised? It’s maybe OK, but is it truly good…..!
“Gulp…!”
And I think as lawyers, we’re not very good at this. We struggle with the idea of getting something wrong. If goes totally against our training … as a result if people get something wrong, then there’s liability, and blame, and compensation.
Challenging stuff.
In Part 3, some thoughts on what a law firm might look at (fair warning …. bit of a sales plug!)
David Calder, Managing Director at The Cashroom Ltd
5 Years of Innovation in the next 18 months – Part 1
Part 1
This quote has been rattling around in my head for a few weeks. In the article I read, it was attributed to a production line manager in a Chinese manufacturing plant, working out how she would return her plant to full operation, post COVID. She was contemplating robotics, split shifts, worker segregation, and a myriad of other ideas. Now a manufacturing plant is different to a legal firm innovating during COVID but the point however was how the COVID lockdown was forcing innovation at breakneck speed.
We’ve seen it everywhere. Think about the Nightingale Hospitals. Seeing the London Exhibition Centre converted into a hospital in a matter of days, was quite inspiring (and a little scary – happily it was never used to full capacity … yet!).
All over the country the government, the NHS and business have innovated at breakneck speed, to meet the challenges of COVID and the post lockdown world.
Which of course begs the question “Why the !@$%^&* didn’t we do this before?”.
Why has it taken a global pandemic to drive such dynamic innovation and change, when we know (be honest!) it should form part of our “normal” business planning?
The question is largely rhetorical, but the obvious answer is that most people hate change. We like the familiar, and the comfortable. We’re hard wired to prefer an “easy life” where we control most of the variables. We hate uncertainty – it triggers fear, and a “flight or fight” reaction. And dare I say it – lawyers even more so. How many partners meetings have you sat in when your partners come up with 100 reasons why the firm shouldn’t do something? It’s what we’re trained to do – to see the problems and the risks and manage them.
What about us?
At our last board meeting, we were challenged to be bolder, to be braver, to do now what we’ve been talking about for the last few months (years!). To seize the opportunity to make the changes we should have made, but never quite got around to.
I must admit, it made me a little uneasy!
But innovation is critical for survival and becoming more so. In 1964 the average tenure in the Fortune 500 in the US, was 33 years. In 2016 it was 24, and in 2027 one study predicts it will be 12. (https://www.innosight.com/insight/creative-destruction/) The rate of “creative destruction” is accelerating!
Change, innovate …… or fail.
Are your palms sweating yet!
Mine are!
David Calder, Managing Director at The Cashroom Ltd
The Emperor’s New Clothes
Remember the fairy tale of the Emperor’s New Clothes?
A vain emperor is conned into paying a huge sum of money for a suit of new clothes, that don’t actually exist. He parades through the streets in his non-existent clothes, and the sycophantic citizens buy into the myth that he’s wearing a wonderful new set of clothes. They are afraid to call out the truth and are complicit in the lie.
But, so the story goes, a small boy shouts out “but he’s naked”, shattering the “illusion” and the Emperor is ridiculed by the previously complicit citizens.
What’s that got to do with anything?
Well, I’m beginning to think that the COVID lockdown is a bit like the little boy – shouting out to all of us “but he’s naked”. Let me explain…..!
Up until recently many businesses have been toying with remote working, thinking about it, but not really doing much. People were worried that we will miss “something” if we don’t all work from one (expensive, centrally located) office. Along comes the COVID lockdown forcing many of us to work from home, and we suddenly realise that it’s perfectly possible.
The COVID lockdown is the little boy shouting “but everybody working in that office is stupid”.
So what else might the little boy laugh at?
“Wait what … you spend hours traveling to and from work?”
I’m lucky – for the last few years my commute has been about 10mins. But I did spend years traveling in and out of Edinburgh. Nobody enjoys that – and if we no longer need to work from one centrally located office … we can all have a 30sec commute to our “office”.
“But why do you need to work then?”
And if you work remotely, from home – why do we need to work between the hours of 9-5 (or a rough approximation of those hours!)? Are we going to see working hours becoming much more flexible?
“But why does it need to wait until the weekend?”
So if working hours become more flexible, will weekends matter? If you’re working from home, with no commute and no fixed hours … why would you split a week into 5 days on and 2 off (schools I hear you say….but I suspect the little boy will be laughing at them too!)?
“So, why is it we live in this tiny house near all these other people”
Looking further ahead, the only reason cities exist is to bring people to one place allowing them to collaborate and work together. Will the little boy’s ridicule reverse the last 100 years of urbanisation? If I don’t need to work in an office, and have no fixed hours, I can live wherever I have access to a fast broadband connection!
So, you get my (somewhat laboured) point …… the COVID lockdown is forcing us to confront long held assumptions. It’s forcing us to look hard at whether the reason we held them in the first place, remains valid now.
And one last question the little boy might ask (!)
“So, why haven’t you outsourced your cash room yet?
………!
David
Well, thank goodness that’s all over!
But is it?
In 1942, after the battle of El Alamein, Churchill said …..
Now this is not the end. It is not even the beginning of the end. But it is, perhaps, the end of the beginning.
I can’t help feeling this is where we are in the COVID Pandemic. We have weathered the initial storm, but there is a long way to go.
If like me, you’re beginning to emerge from lockdown, blinking in the sunlight, with the initial business continuity response behind you, and a business that is beginning to operate “normally” – you’ll be starting to think “well, what’s next?
Bluntly, I have no idea … and very few people (including our politicians) have.
However, we need to start somewhere, and I wanted to talk about a couple of things playing on my mind recently. Firstly, business continuity, and secondly, a return to the “office”.
Business Continuity
At the Cashroom we went from having 85 people in a traditional office setting, to 85 people, fully operational and working remotely in just over a week. I won’t pretend it was stress free, but our planning worked, and we did it.
We also continued to provide a fully remote service to our clients with minimal interruption to service, meaning they didn’t need to worry about business continuity planning for their accounts function.
So why is this still an issue?
Well, if I understand the epidemiology (!), the lockdown has flattened the peak, but by preventing the majority of the population catching the virus, as the lockdown is loosened, there’s a risk of a second peak, as we have not yet reached the stage of “herd immunity”. Or in other words – the lockdown stopped people getting the virus so they can still get it now, because they are not immune.
And look to history. The 1918 Spanish flu pandemic hit in three waves, with the second killing more people than the first. The 2009 swine flu pandemic started in spring and, in the northern hemisphere, was followed by a second, larger wave in the autumn.
Chances are, this will not be the only lockdown.
So, let’s not pat ourselves on the back too soon. It’s likely we will dusting off our business continuity plan once again. And as this article argues (https://www.continuitycentral.com/index.php/news/business-continuity-news/5136-looking-ahead-to-a-second-pandemic-wave-why-acting-now-to-strengthen-your-crisis-management-capability-is-the-key-to-building-future-resilience) the second wave will hit already weakened businesses, and may be more devastating than the first.
We’ll be reviewing our business continuity plan, making sure we’ve learned the lessons of the first lock down, and making sure we’re ready for a possible second.
Returning to the Office
In the UK we’re hoping to return to the office sometime in late summer/early autumn. It will be gradual, and cautious, but it will happen …… maybe!
Setting aside all the discussion about whether office life is dead, and whether there is any need for businesses to return to an office at all, the practicalities of making a typical office environment “COVID Safe” are daunting.
Read this article from the CIPD – https://www.cipd.co.uk/knowledge/fundamentals/emp-law/employees/workplace-guide-returning-after-coronavirus, and if you’re brave, look at the detailed guidance from HMG here https://www.gov.uk/guidance/working-safely-during-coronavirus-covid-19/offices-and-contact-centres
Now, some will have no alternative. But if you do, if you can operate your business remotely, using technology and outsourced providers, why would you risk a return to office life …. particularly if there is a risk of a second outbreak, and a second lockdown.
Summary
So, lots to think about as we find our way safely to a “new normal”. But it seems to me that agility is the key. The more flexible your workforce, and your systems, the better.
We all need to be prepared for disruption, and a lot less certainty than we’re used to. And we need to design our businesses accordingly.
And if you are thinking about outsourcing your finance function, you know where we are!
David Calder, Managing Director at The Cashroom Ltd
Back to the Future – It’s never been easier to start your own law firm!
I think it’s now pretty clear we’re facing a severe recession. No surprise really, given the extraordinary measures taken to stem the spread of COVID 19.
Like all of you, I’m trying to work out what that means for our business.
But, we’ve been here before. My business life includes the dot com bust, and the financial crash in 2008. In fact, the Cashroom was founded in 2008, in the depths of the last recession. So, I’ve been reflecting on what we can learn from the past … can we go “Back to the Future”.
One of the first articles I wrote for the Cashroom’s website was how it had never been easier to start your own law firm. I wrote the article in 2012, as we were beginning to recover from the 2008 recession. It focused on how technology had advanced since I set up my own firm in 2005, 7 years earlier. Things like, being able to “rent” practice management software (don’t think I knew the anacronym SASS then!), rather than buy it, and how cloud computing meant you didn’t need to buy and run a server in your office.
It was one of our most read articles of 2012. I followed it up with a short series on starting a law firm from a blank piece of paper, which were also well read (they’re still there https://www.thecashroom.co.uk/law-firm-you-want-to-own/)
Why?
Well, at the time lots of lawyers were thinking hard about what they wanted to do. Many had been made redundant from large firms, and a few had been treated pretty poorly. They were beginning to wonder whether they wanted to “go out on their own”. At the time the Cashroom won considerable new business from new starts.
Last week I signed 2 new clients. Both of them new starts.
I suspect many lawyers are thinking about their future after the “trauma” of lockdown, and many more will do so during the coming recession. And as I did in 2005, many will decide that if they’re going to go to hell in a hand cart, it might as well be their own hand cart.
And guess what – it really has never been easier to start a new firm, even easier than it was in 2012. The price of technology has dropped even further, the scope and diversity of the legal services you can provide has never been wider, and we all know now that you don’t need an office!
So, if you’re thinking about how you go back to work in your old firm, or maybe even whether you go back, remember …. it’s never been easier to set up your own firm!
And of course, if accounting and compliance are something that’s putting you off, we can help!
David
Innovation – some key principles
I was fortunate enough to attend the Legal Futures Innovation Conference in London at the end of last year. This is one event that always manages to draw some of the leading lights in the legal sector to talk and share their experiences, news and views on what the future may hold for the profession, and delivery of legal services.
One such talk was by Tony Kay of Lexis Nexis and he conveyed some useful key principles that they live by, when looking at innovation within their business and product offering. In current times, many of us may find that as well as having to make immediate, short term strategic decisions for our businesses, we have more time to focus on what the future may hold, beyond Covid-19.
The great thing is that you can “borrow“ the same principles, and apply them to your own strategic planning of new services, new departments, new offices, new technology, ways of working etc etc.
1. Desirability – does someone want it, and are they willing to pay for it?
2. Feasibility – are you able to do it… cost effectively?
3. Viability –does it make business sense… (specifically) to your business?
One thing that I would add is that this shouldn’t only relate to client facing innovation. It is always worth looking at internal innovation or initiatives on a constant, or at least regular, basis. Sure, there is value in offering new things to your clients to compete against other firms for new business, but you can also use innovative ways of working to become more efficient and profitable at doing the work you already have.
A very basic example – using double computer screens for staff who regularly have to take information/data from one location e.g. an email, and enter it into another, e.g. your practice management system, or online banking platform. The time saving, and increased accuracy of data entry, multiplied by the amount of times the activity is done on a daily/weekly/monthly/yearly basis, is significant. The cost is as little as about £80 for an extra screen!
Using Tony’s criteria above, and considering it as an opportunity to innovate, it certainly meets the three tests. It is:
- Desirable – people (staff) want it because it will make their life easier.
- Feasible – easy to introduce, and costs are minimal.
3. Viable – it makes perfect business sense – for a minimal investment, it creates time and accuracy benefits, thereby making work more profitable.
So, think about innovation in a holistic way. You don’t need to be offering a new flashy/’techy’ product that no other law firm is offering, innovation is also about improving things like the way work is communicated, or the way it is done, so there are many small, easy steps you could take on a regular basis that satisfy the principles of desirability, feasibility and viability, and take your business forward.
Gregor Angus, Senior Business Development Manager.
The Cashroom
Has Your Law Firm Embraced the Benefits of Legal Process Outsourcing?
The demand for legal process outsourcing has gathered considerable pace in the past few years. In the next decade, it is expected to become vital in enabling law firms and in-house legal departments to grapple with the challenge of delivering a competitive, efficient, safe, and innovative service to clients.
What is Legal Process Outsourcing?
Legal process outsourcing enables law firms and in-house legal departments to utilise the services of external specialists to perform specific legal functions on their behalf. Services such as eDiscovery, client billing, legal cashiering, management accounts, contract drafting, document review, and compliance assistance are now commonly outsourced to third-party experts, rather than being undertaken in-house. There are many reasons for doing so, including handling a sudden influx of work for which there is insufficient internal capacity, to reduce wage costs, to drive efficiency, and ensure compliance with the latest standards and best practice.
Focusing on core competence
Legal process outsourcing enables legal teams to focus on what they do best. This is important as modern law firms have to be agile, allowing them to move in and out of legal markets as demand changes. Traditionally, providing new service offerings may have necessitated the hiring of new resources, training, and the implementation of new systems and processes, but in the age of legal process outsourcing, law firms can now focus on their core competencies.
According to the Law Society, legal process outsourcing “can allow law firms more opportunities to offer a wider range of services to clients, potentially attracting a broader client base”. And crucially, they say that legal process outsourcing “allows lawyers to concentrate on the task for which they are trained and paid, free from the inevitable bureaucracy that surrounds any legal service”. This is a win-win for law firms as by freeing staff to perform higher-level functions, without becoming bogged down with paperwork and administration, not only will the client receive a better service, but the employee will be more fulfilled in their role.
Ready to hit the ground running
The best legal process outsourcing providers will not only have experienced staff ready to perform the function required of them, but they will also do so in a manner which ensures compliance with GDPR, and all other compliance requirements. That said, it is essential that law firms and in-house legal departments engage external providers with the necessary skills, experience, and compliance credentials to undertake work on their behalf. For example, if a third-party will be processing data on behalf of the law firm, it is vital that they do so in accordance with GDPR. It is also important to ensure that the scope of the work, timescales, and delivery expectations are set and agreed, thereby avoiding any confusion or problems at a later date.
Finding trusted partners is key
New legal process outsourcing providers are launching each year, offering new services in innovative ways. By engaging with a provider you can trust and building a long-term relationship, the boundaries between the different businesses become seamless. As staff from the legal process outsourcing provider get to understand the processes and the slight nuances of the law firm they are assisting, work can be completed with even greater efficiency and in higher volume.
Final words
Legal outsourcing offers transformative benefits for small and medium-sized law firms trying to compete with the big players. Not only will legal businesses be able to operate with smaller cost bases, and those costs be better controlled than wholly in-house resources (i.e. due to fixed pricing arrangements), they can operate in a much more agile manner, providing greater strategic flexibility. Make 2020 the year your law firm starts to leverage the potential of legal process outsourcing.
If you are regulated within the English and Welsh markets, then please contact:
Alex Holt E: alex.holt@thecashroom.co.uk T: 07817 420 466
If you are regulated by the Law Society of Scotland, please contact:
Gregor Angus E: gregor.angus@thecashroom.co.uk T: 07875 598 593
A Day in the Life of a Legal Cashier
Merely months after I left high school, I was determined to get straight into the business world and gain experience that would open doors anywhere I go. I applied to start as a junior for The Cashroom. Now, over seven years later, I am a qualified legal cashier in a team servicing 28 clients – still with The Cashroom.
On a daily basis, I am responsible for ensuring that our client’s books are up-to-date. This is achieved by ensuring all transactions from the previous day have been posted to the client’s Practice Management System (PMS). We would then do a bank reconciliation on the PMS using their bank statements. The bank reconciliation will highlight any omissions or errors. Oh, and our clients do not all use the same PMS. There are several large businesses in the UK which provide a wide range of different systems. Compared to an in-house cashier, this means that my colleagues and I must be able to use and adapt to these systems.
Once these daily tasks have been done, we then focus on queries from our clients and ensuring any ad-hoc tasks are completed. This can range from our regular compliance checks (credit balances not moved in two months for example) to preparing a purchase ledger payment run. Different practice management systems are not the only challenge that we face. Our clients work in various locations and practice different types of the Law.
We also deal with various projects outwith the general cashiering tasks. For example, one of our clients may decide to move from one PMS to another. These changes can provide a lot of benefits to our client, but the changeover is not a simple procedure. As the cashiers, we need to analyse the data on the current system and work with the new provider to ensure it is dealt with correctly on the new system.
Another example would be to assist with a Law Society inspection. Whilst most practice units keep the prospect of an inspection in mind, it’s not always at the top of the list. This can make an inspection notice a stressful process. It is our role as cashiers to provide all the reports that an inspector will need and to assist with any queries or issues raised during the inspection. This allows the practice unit and its staff to focus on their work.
But I am more than just a cashier! Over the years I have expanded into several areas of the business. I volunteered to help our Service Transition team, joined a steering group for The Cashroom’s own web-based Portal, organised our ambitious social committee with colleagues, and accepted a place in The Cashroom’s Future Leadership Programme.
No day at The Cashroom is the same as the last. One day I could be helping my team ensure that all our clients are being serviced with the highest quality of care. The next, I could be in and out of meeting with the Portal developers making sure we are always innovating and deploying new features for our colleagues and clients.
There is no satisfaction in staying in the same place. That is why I push my limits each day to expand my knowledge base. A example of this would be voluntarily undergoing training with some of the UK’s best-selling practice management system providers for example. Doing this allows me to do my daily cashiering work with full confidence and assist our clients to unlock their system’s full potential. You may not be surprised to hear, that’s not all the training I do, I also help train juniors who start the same way that I did over seven years ago. My experience in all the aforementioned areas, combined with my personal journey through the same route that they are on, guides our newer staff in the right direction.
As you can see, there are many different aspects to my role as a Legal Cashier at The Cashroom, and it is the variety and great experience I get from all of these that keep me motivated at work on a daily basis.
Kyle Stratton, Legal Cashier
The Cashroom Ltd
Will the 2020’s Be the Decade of Law Firm Efficiency?
The importance of innovation and law firm efficiency cannot be overstated.
The profitability of any law firm is proportional to the amount of time it takes to complete the chargeable legal work completed.
With many legal services moving toward fixed fee pricing models there is additional pressure to ensure as much work as possible is completed with the minimum of demand on fee earners. That said, law firm efficiency must be balanced with the need to ensure work is completed thoroughly and to the required quality. For Solicitor Regulation Authority (SRA) accredited Solicitors, this means they must adhere to the Accounting Rules, Principles, and Code of Conduct.
The vast opportunity of increased legal innovation and efficiency
According to Thomson Reuters Legal Executive Institute, there are huge opportunities to be realised by increasing law firm efficiency. A 2019 survey of small law firms revealed that many faced a wide variety of “significant challenges”, in particular the excessive amount of time being expended on administrative tasks; accounting for up to 40% of the average lawyer’s time. As such, law firms are now focused on improving efficiency through a wide variety of means.
Technology is underpinning the drive for legal efficiency
The need for law firm efficiency is one of the primary drivers towards the widespread adoption of digital technology, including artificial intelligence (AI), electronic discovery (eDiscovery), data analytics, and online client portals.
The law sector, both locally in the UK and internationally, is experiencing a considerable technological shift. Organisations who have maintained many of the traits we know as “traditional law firms” are under pressure from new dynamic entities which are able to deliver legal services in a consistent, rapid, and high-quality manner, and still with high levels of customer service. To do this, fee earners need to be freed up from onerous and time-consuming work which can now be completed by automation tools and software.
Leveraging external service offerings
Law firms are also realising the importance of law firm efficiency by freeing up resources to work on more complex and, ultimately, higher-value work. In addition to technology, outsourcing of essential business services is enabling internal legal resources to focus on what they do best – practice law. Small, medium, and large Solicitor practices are increasingly utilising the knowledge and skills of external business services, including cyber security specialists, IT, and financials (invoicing, legal cashiering, and management accounts). Such is the demand for ‘as a service’ expertise (e.g. software as a service, marketing as a service), each year more and more providers are starting up, with most offering fix price monthly pricing. This approach to law firm efficiency also reaps rewards by reducing the demand for office space, ensuring adherence to the latest standards and legislation, and reducing internal headcount and associated costs.
Final words
As we enter a new decade, Solicitors of all types and sizes are focusing on improving law firm efficiency. Whether it be through process analysis and control, digital technology, and outsourcing of essential business functions, there will be two primary winners for those who are ultimately successful; Solicitors who can engage in more meaningful and high-value legal work (and of course law firms themselves), and their clients who will benefit from the extra time that can be spent focusing on their needs. Increased law firm efficiency provides a win-win for all concerned.
Established for over 10 years, The Cashroom are experts in helping law firms become more efficient when it comes to cashiering, management accounts and payroll. With extensive experience in the legal sector our solutions are tailored to the needs of the changing legal landscape.
Our investment in our products and services means we help to improve efficiency and security beyond the capability of many law firms.
For an introductory discussion please contact a member of our team.
If you are regulated within the English and Welsh markets, then please contact:
Alex Holt E: alex.holt@thecashroom.co.uk T: 07817 420 466
If you are regulated by the Law Society of Scotland, please contact:
Gregor Angus E: gregor.angus@thecashroom.co.uk T: 07875 598 593
Law Firm Data Security Obligations Under GDPR
The EU’s General Data Protection Regulations (GDPR), which were enacted into UK law by the Data Protection Act 2018 (DPA), place strict requirements on law firm data security. While the GDPR relates to any business using personal data within the EU, given that law firms are required to handle often highly sensitive personal information, they must go the extra mile to mitigate any potential risk to their clients.
Data controllers vs data processors
Core to understanding law firm data security obligations in the context of the GDPR is interpreting the terminology used. Firstly, both data controllers and data processors are required to adhere to GDPR.
According to the UK’s Information Commissioner’s Office (ICO), data controllers are defined as any “natural or legal person, public authority, agency or other body which, alone or jointly with others, determines the purposes and means of the processing of personal data”. And data processors are any “natural or legal person, public authority, agency or other body which processes personal data on behalf of the controller”. In other words, the controller determines what information should be processed and for which purposes, whereas the processor undertakes the actual processing work.
As such, law firms may find themselves acting in both roles. As confirmed by the law society, however, law firms assessing their law firm data security should not just assume they are acting in the role of data processor when they may not be. For example, for a law firm undertaking electronic discovery in-house, it is likely they would need to conform to the GDPR rules for both controller and processor. If discovery is being contracted to a third party, it is likely the external entity would be classed a processor and the law firm would be the controller. The European Data Protection Board provides some useful information to make this decision.
Seeking assurances from third party data processors
When assessing law firm data security risks where third parties are used to process data on behalf of the controller, it is essential to ensure that the processor is able to comply with their legal obligations under GDPR – this should not just be assumed. Failure to verify this could lead to a ‘supply chain compromise’ whereby the third party fails to adequately secure the IT systems that hold your (and your clients) data.
The National Cyber Security Centre (NCSC) states that a vulnerable data supply chain can be avoided by adhering to its principles, under the following categories:
- Understanding the risks
- Establishing control
- Checking your arrangements
- Continuous improvement
For example, the NCSC recommend that where necessary, data controllers may wish to use the Centre for Protection of National Infrastructure (CPNI’s) Personnel Security Maturity Model to assess the effectiveness of their people security arrangements. While this may seem onerous, to fully ensure law firm data security, it may be the only way to mitigate any risks fully.
Wrapping up
It is critical then that law firms take their responsibilities seriously, especially considering the financial penalties and reputational damage which may be levied for non-compliance.
To prevent “supply chain compromise” ensure you work with organisations who have a similarly transparent and compliant approach to data protection and proactively demonstrate this to you, providing you with full assurance for your law firm and your clients.
The Cashroom understands the potential pitfalls of data security. We take data security and protection seriously. To find out more about our approach to data security have a read of our recent blog here.
We’re happy to share our experience with our clients and our own data protection policy is available online here.
The Cashroom helps law firms stay on the right side of compliance, whether it be GDPR, data security and SRA or Law Society of Scotland Accounts rules.
We bring our extensive experience in the legal sector to you, whether you are looking for outsourced cashiering, help with the production of management accounts, or support with your payroll.
For an introductory discussion please contact a member of our team.
If you are regulated within the English and Welsh markets, then please contact:
Alex Holt E: alex.holt@thecashroom.co.uk T: 07817 420 466
If you are regulated by the Law Society of Scotland, please contact:
Gregor Angus E: gregor.angus@thecashroom.co.uk T: 07875 598 593
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What do lawyers want from their suppliers?
In a leafy part of England a merry band of 70 suppliers of services to the legal sector gathered for the LSAS conference. It’s an annual event at which ideas are shared, contacts are made, and the occasional sherry is supped.
A theme emerged from the numerous excellent talks throughout the day…
The need for any sale of services to be a win for both parties.
It seems obvious doesn’t it? Yet when you think about it, often one or other of the parties comes away feeling not quite so happy. Either the client feels they’ve paid too much, or the suppliers feel they’ve been talked down on price. Perhaps the issue is the financial one.
After all, the cost of something is always relative to the worth it represents to the buyer, isn’t it?
So it’s crucial that a supplier takes the time to really understand their prospective customer- the needs of the firm, but also the requirements of the individuals within the firm who will be interacting with the product or service. A panel of senior people from law firms was gently grilled by Chris Bull, Legal Sector Consultant and it was slightly depressing to hear that often suppliers don’t think about who they will be talking to when they make contact. We were told in no uncertain terms that a call from a supplier who hasn’t taken the time to research the firm and the individual contact will receive a much cooler reception.
Crucially, the ‘buyer’ is often not the firm. It’s the individual for whom you will be solving a problem, or fulfilling a need. What do they need from you so that they can be convinced themselves, and what do they need so that they can take information and convince any other influential people within their firm? By treating each sales engagement as a collaborative process, and acting with respect and integrity throughout (essential elements for any relationship to work), the benefits to the individuals and the firm can be drawn out and supported, making the discussion around price a far more involved negotiation as the dialogue is now around a value proposition.
The final shift over the line to a sale is often, we were told, the vital addition to the conversation of stories. Case studies. Testimonials. Existing happy clients or buyers. Real people who have experienced your products and services and will speak glowingly of the benefits. They take the ideas and lists of promises from conceptual to real.
Coming away from a conference like this with more than just a headache is always welcome…on this occasion invaluable ideas were as plentiful as the wine.
Alex Holt, Business Development Director
The Cashroom Ltd
The Psychology of Sales- Understand your prospective clients ‘mode’
I’m no psychologist. So you’ll be delighted to hear that the ideas I’m about to put forward are not my own, but those of far more learned proponents of the science.
When engaging with your prospective clients, do you understand what their present state of mind is?
There are three modes that you should consider-
OK or Even Keel – This is when your prospective clients are basically happy with their lot. It does not mean they are not a potential buyer, just that they don’t perceive an urgent need for what you’re selling. With this kind of client, it’s important to stay in communication. Keep them informed of your services and products. Make them aware of the benefits of working with you. But don’t in any way go for the hard sell. You want to be in their mind when they move into one of the other two modes.
Fear or Problem – this is often the mode in which clients of law firms find themselves. Litigation. Divorce. Bereavement. Classic reasons for needing a lawyer. At the point when your prospective client is considering your services are you thinking about their state of mind? Are you shaping your products and messages to appeal to someone who is probably stressed and worried? Are you responsive and communicative?
Hope or Aspiration – these clients are a different challenge. Perhaps they are growing a business or trying to do deals. They have a big idea and they are buying your services as part of a strategic plan. You will need to convince them you can match their requirements and ambitions with a service that enables them to achieve their goals. Should you consider a more project based approach to deliver your services in alignment with the client’s timescales, and should that lead to a slightly different discussion around pricing?
It sounds so simple, yet so many sellers of services or products fail to put themselves in the shoes of their customer or client. What is the end goal they are trying to achieve when they consider your service? A conveyancing transaction is not how your client looks at it- for them it’s a move, against a removal deadline, into their new home. A litigation matter is not an intellectual challenge- for your client it is a stressful and unwanted expense. Your approach and manner of client handling should reflect such differences.
Alex Holt, Business Development Director
The Cashroom Ltd
Things to consider when looking for a legal cashiering service
When looking for a new product or service, conducting research is vital to ensure not only that you get value for money, but also you can enjoy the best experience possible by finding the provider most suitable for your specific needs.
Whether you are searching for a hotel, holiday destinations, the latest gadgets or kitchen appliances, you need to do your research, and the same is true for legal cashiering services.
So, what things should you consider when looking for a legal cashiering service?
Consider a providers reputation. Speak to current customers and read testimonials or case studies on their website. However, a company isn’t only judged on the service it provides to current customers, but how it deals with customers who wish to leave. Enquiring about this will give you the whole client experience. Plus, an ex-client can give you the honest answers about how professional the outsourcing company is when it comes to separating and terminating the contract.
Can the company work with your current set-up/practice management system? The last thing you want is to find out you have to spend a small fortune implementing new systems in order for the outsourced legal cashiering to work. The Cashroom has a totally system agnostic approach, meaning that firms don’t have to change their systems before benefiting from the service.
Another factor to consider is how quickly the set up can be up and running, reducing the impact it has on your firm. The Cashroom’s legal cashiering service hits the ground running by getting set up quickly with no downtime or disruption.
Ask questions around your contract. Find out if you’re tied in for a period of time, have early repayment charges if you decide to leave etc. But also find out who ‘owns’ and houses the financial data, and the implications of retrieving this if the contract is terminated. Ironing these terms out at the beginning of your relationship is crucial to ensure the smooth running of the legal cashiering service.
Establish who will manage your account and be your specific point of contact. The last thing you want is to be pushed around from pillar to post if you need to speak to someone about an issue that needs resolving asap.
Maintaining compliance with regulators as well as providing a high-quality service should be the top priorities for your outsourcer. Here at The Cashroom we don’t just have a grasp of accounts, our cashiers also possess appropriate qualifications and an in-depth understanding of regulation rules, for example, the Solicitors Regulation Authority (SRA) Handbook, SRA Account Rules, The Law Society of Scotland Account Rules etc. Also, it’s vital to ensure the outsourcer can explain/show how they adhere to data protection regulations, such as GDPR. Again, this should be set out in detail in the Contract.
It’s no secret that law firms are a particular target for cyber criminals, so it’s imperative to find out what defences an outsourced legal cashiering firm have in place.. At The Cashroom, we offer a secure end to end encrypted online portal to allow internal and external stakeholders to communicate and share information. We also hold an industry leading Cyber Essentials Plus Certification.
Communication is key in any relationship with an outsourcer. So, establishing how you can remain in contact with them is vital. At The Cashroom, we provide an online portal, eliminating email and enabling everyone to know where tasks are up to. All requests are clearly tracked and monitored and can easily show an audit trail if required. Having a clear and concise system, helps to ensure deadlines are adhered to and communication is clear for all concerned.
Finally, if you’re considering outsourcing other areas of your firm, it may be worthwhile to see if your outsourcer provides these services as well. This will help to streamline your processes and ensure you’re only managing one supplier. Here at The Cashroom, as well as providing legal cashiering, we also offer management accounts, payroll services, and compliance and efficiency audit reviews / support to law firms across the UK.
If this blog has whet your appetite, and you’re intrigued to learn more about the services The Cashroom could provide, or you’d just like to ask a few questions, please contact us.
Our contact details can be found below.
If you are regulated within the English and Welsh markets, then please contact:
Alex Holt E: alex.holt@thecashroom.co.uk T: 07817 420 466
If you are regulated by the Law Society of Scotland, please contact:
Gregor Angus E: gregor.angus@thecashroom.co.uk T: 07875 598 593
What is your strategy for law firm data security?
The news is regularly showcasing headlines about companies experiencing cyber breaches, as criminals refine their skills, finding sophisticated ways to get their hands-on personal data and intercept financial transactions. So when was the last time you reviewed your law firm data security?
But when it comes to law firm accounts, how are you able to ensure that the information the business holds is kept safe and secure? And how are you able to ensure that you’re remaining compliant for your regulators?
Law firm data security is one of the many facets of the day to day running of business. One that regularly competes for a solicitor’s attention but may not seem as high a priority as earning fees or other more profitable business opportunities.
Due to the increasingly cyber world we live in, having cyber policies and security in place is vital to ensure cyber criminals are kept firmly in the dark. However, The ‘Cyber Security Breaches Survey 2019’, released by the Department for Digital, Culture, Media and Sport found a number of policy omissions desperately needed to protect a firm and their clients from the clutches of cyber criminals.
Only one third of UK businesses have created a cyber security policy within their organisation, with 26% training staff to spot the signs of cyber crime. Fewer than a third of organisations had also planned for a data breach.
This is where outsourcing your management accounts can help to free up your time, to focus on money earning opportunities and other priorities, whilst leaving the law firm data security, compliance and cyber security in a safe pair of hands.
An outsourced management accounts team take a belt and braces approach when it comes to security measures. They’ll have procedures and policies in place like firewalls, encryption, password protection, physical data centre anti-intrusion systems, software updates and back-up procedures. This approach ensures that your law firm data is kept secure.
The Solicitors Regulation Authority speculated in 2018 that £11million was lost in the legal sector due to cyber crime, and as a result a plethora of regulations have been instigated to help tighten law firm’s defences, and ensure firms share information with regulators as soon as issues become apparent.
Third party suppliers are able to keep their fingers on the pulse of your accounts and flag up anything that seems out of place not only to you, but to the regulators, in a timely manner. This alleviates time pressures and potential to miss an issue and come under further scrutiny.
Why The Cashroom?
Here at the Cashroom our experts are on hand to take some of the stress away from day to day business. Our expert legal cashiers can help to improve the efficiency of your law firm, whilst ensuring firms remain complaint with the SRA Account Rule Changes.
If you are considering outsourcing legal cashiering and would like to chat to someone at The Cashroom, please get in touch.
If you are regulated within the English and Welsh markets then please contact:
Alex Holt E: alex.holt@thecashroom.co.uk t: 07817 420 466
If you are regulated by the Law Society of Scotland, please contact:
Gregor Angus E: gregor.angus@thecashroom.co.uk t: 07875 598 593
