How does outsourced legal cashiering work?

Finance - 16/08/2023

When it comes to law firms, the lawyers rightfully take centre stage. But behind the scenes, legal cashiers work tirelessly to keep everything financially shipshape. 

As specialised bookkeepers, legal cashiers are responsible for managing the day-to-day accounts of law firms. From managing transactions to navigating regulations, they help law firms to run smoothly, stay compliant, and uphold their all-important reputation. 

Currently, law firms are facing a shortage of qualified legal cashiers due to high demand in the industry and many firms are choosing to outsource their legal cashiering instead. But how does outsourced legal cashiering actually work and is it the right choice for your firm? Let’s find out!

Challenges of in-house legal cashiering

While keeping legal cashiering in-house is a strategic choice for some law firms, it comes with a unique set of challenges that are hard for others to ignore.

Firstly, running an in-house legal cashiering department can be expensive, especially for smaller law firms with limited resources, and finding and retaining experienced legal cashiers is a challenge in itself!

Legal cashiers must also stay up to date with industry trends, ever-changing financial regulations, and legal best practices to ensure they remain compliant. This means that legal practices must provide their in-house cashiers with regular, comprehensive training and development opportunities throughout the course of their employment. 

Finally, it’s essential for firms to maintain robust data security measures to ensure they can appropriately handle their clients’ sensitive data and adhere to data protection laws. If the infrastructure isn’t already in place or needs updating, law firms can find themselves in hot water. 

Given these challenges, it’s unsurprising that thousands of firms nationwide choose to outsource their legal cashiering instead!

The rise of outsourced legal cashiering

Outsourced legal cashiering is on the rise as more and more firms choose to delegate their financial management tasks to external providers.

This is most likely due to the competitive and dynamic nature of the legal industry – law firms are under constant pressure to streamline their processes and boost their financial efficiency. Outsourcing helps them do just that! Plus, it can come with a wealth of other benefits, like saving them time and money.

How does outsourced legal cashiering work?

Transitioning to outsourced legal cashiering can be a game-changer for your legal practice, but it’s essential to understand what’s involved to ensure the transition goes smoothly. 

Let’s take a look at the typical steps involved. 

1. Find the right match: The first step is to choose an outsourcing partner that aligns with your firm’s needs and values. 

Identify your requirements and look for an outsourcing partner with a proven track record of delivering the services you need. Consider your growth trajectory at this stage to ensure you choose a partner who can meet your needs now and in the future.

You should also consider the cultural fit to minimise potential friction. Verify that the partner has a strong commitment to the same high ethical standards that your firm upholds.

Never settle for second best! Numero are experts in accounts and a recommended cashiering provider for Insight Legal & LEAP. With Numero by your side you can rest assured that your firm’s accounts are in capable hands.

2. Define your objectives: Once you’ve chosen an outsourcing partner, it’s important to help them understand your unique requirements and overall objectives.

Begin by outlining your firm’s current financial processes and systems. Work with your outsourcing partner to analyse your financial records and cash flow patterns, and identify any current pain points.

Once they have a thorough understanding of your financial landscape, your outsourced legal cashier will be able to address existing challenges and introduce new efficiencies that will positively impact your firm’s financial operations.

3. Handover: After you’ve laid the foundations, it’s time for the handover!

Provide your outsourcing partner with access to your firm’s systems, databases, and relevant documentation so that they can get to work doing what they do best. 

Don’t forget to schedule regular check-in meetings to review their progress, address any queries, and ensure that everything is going according to plan. 

Still wondering who the right outsourced legal cashiering provider is for your law firm? Numero cashiers can work with any software, are always contactable during office hours, and have compliance covered. Get in touch to find out more! 

Are there any risks involved in outsourcing your legal cashiering?

Like any business decision, outsourcing your legal cashiering comes with certain risks. Law firms need to be aware of these risks and address them proactively before they make the switch.

Some of the potential risks involved in outsourced legal cashiering include:

Risk: Moving your financial operations from an in-house team to an outsourced provider can present challenges during the transition period. This could impact your operational continuity and efficiency.

Solution: Proper planning, training, and documentation are crucial to ensure a smooth transition!

Risk: Sharing sensitive financial information with an external outsourcing provider can raise concerns about data security and confidentiality. 

Solution: Choose an outsourcing partner that has robust data protection measures in place to safeguard against data breaches and prevent unauthorised access.

Risk: While outsourcing can be cost-effective in many cases, unforeseen expenses or changes in the scope of services can lead to cost overruns.

Solution: Transparent pricing and a thorough understanding of the outsourcing contract can help to mitigate this risk.

Selecting the right outsourced legal cashiering provider

Your business doesn’t move in a straight line. Your outsourced legal cashiering shouldn’t either. At Numero, our plans are flexible and our dedicated cashiers can work with any software. Plus, we always stay up to date with relevant financial rules and regulations, so that you don’t have to!

As your legal cashiering experts, we’ll handle all of the details, so you can focus on what matters most – your legal practice. Rest assured, we’ll ensure a seamless day-to-day accounting experience that keeps your financial matters running like clockwork, from handling your financial transactions and safeguarding your client funds to maintaining your law firm’s financial integrity. 

Don’t let legal cashiering be an afterthought, contact us to get started and see first hand the benefits of partnering with Numero!