Written by:
Grant Yuill
Head of Marketing & Customer Engagement
One of the most compelling arguments in support of legal software is that it can bring about enhanced efficiency and cost savings for legal professionals. Although this specific aspect is emphasised by providers of legal technology, a significant number of lawyers continue to believe that implementing legal technology solutions is a significant expense that is both inconvenient and time-consuming.
In actuality, this is not the case, as it is stated that legal technology has a good return on investment, and many law firms are continuing to expand their budget for investment. Some law firms are slow to adapt to new methods of working, even though there are major benefits associated with digitalisation and legal technology solutions. This article explains how the use of technology may help to generate increased profits for a legal company while also lowering the total costs of the firm.
What are the overhead costs for a law firm?
To fully understand how legal technology could reduce a law firm’s costs, it is first essential to understand what those costs are. The term “overhead” refers to any cost that is not directly connected to the pay a lawyer receives. This covers costs such as rent for the office, bills for the internet and phone, utilities, expenses for printers, office equipment, bathroom and kitchen facilities for the office and equipment for the meeting room.
A law firm’s overhead costs may also include pay for non-lawyer staff, such as paralegals, legal assistants, researchers, administrative personnel, and other office employees. In short, whatever a law firm spends on that which does not create revenue is considered an overhead cost that must be strictly controlled and monitored.
Due to the high overheads and running costs, most legal firms demand higher rates but seldom generate large profits. That is why many small law firms wind up losing 60% or more of their revenue if they do not properly control or cut their overhead costs.
Streamline Workflows and Reduce Admin Overload
Time-consuming admin tasks, such as typing documents from scratch, looking for client information across many systems, or manually updating diaries and timesheets, can slow down traditional legal workflows and cause them to take longer to complete. There is a cost associated with these inefficiencies, and that cost is time.
We have spent decades at Denovo Business Intelligence developing solutions that have been tailored to meet the needs of local law firms. Rather than being only a case management software, our CaseLoad platform is an end-to-end solution that is meant to simplify your workflow, reduce expenditures that aren’t essential, and free up your team to focus on the things that are most important, your clients.
CaseLoad automates and streamlines repetitive tasks. Such as:
- Automated document creation
- Pre-built case workflows
- Centralised client communication
- Integrated time recording
All of the above help your organisation to eliminate manual entry, saving hours of admin work each week. By reducing your reliance on manual procedures, you may reduce your staffing costs and improve consistency throughout your firm’s operations.
Embrace Cloud Technology and Save on Physical Costs
Managing physical records, office storage, and computer technology that is out of date is one of the most significant hidden costs that a legal firm must bear. Your staff will be able to access case files, client details, and financial data in a secure way from any location and on any device thanks to the cloud-based system that Denovo offers.
In other words:
- Spending less funds on things like paper, printing, and courier services
- Reduce the need for file cabinets or on-site storage
- Reducing IT maintenance and network costs
- Improved flexibility for remote or hybrid working
Furthermore, because our platform is developed and stored in the UK, you will be fully supported by local compliance regulations and safe data hosting.
Outsource your cashroom to reduce risk and in-house costs
When it comes to dealing with Legal Society compliance, reconciliations, and client account restrictions, managing the finances of your law firm in-house may be both expensive and complicated, impacting the overall productivity of your legal practice. Hiring skilled cashiers, training employees, and maintaining compliance may quickly become a costly burden.
Across the legal sector in Scotland, firms are able to use Denovo’s reliable Outsourced Cashroom Service to enhance their legal practice. Your payment processing is handled by our skilled staff, which includes the following:
- Daily bank reconciliations
- Client and office account management
- Compliance reporting
- Year-end accounting and Law Society inspections
Outsourcing your cashroom allows you to save money on payroll and training while also having the peace of mind that company finances are in capable hands.
Reduce Risk with Built-in Compliance Features
When it comes to legal work, mistakes may be quite costly for legal professionals, both financially and in terms of reputation. Denovo’s CaseLoad platform protects your firm by integrating compliance into your day-to-day operations and enhancing your practice management software.
Features like:
- Built-in Law Society of Scotland compliance rules
- Audit trails and time stamping
- Automated conflict checks
- Data security and permission controls
To minimise the likelihood of costly errors or violations of regulatory requirements, assist your staff in working with confidence. The result of this is that your legal services company may be protected from fines, claims, or increases in insurance premiums.
Legal Software Tailored for Scottish Law Firms
Unlike other legal tech firms, Denovo develops every aspect of our service with Scottish solicitors in mind. We understand how your firm operates, from the integration of Registers of Scotland to the workflows of Legal Aid and the administration of Executry cases. This is because we developed our system with feedback from firms that are similar to yours.
Customisation options allow you to tailor CaseLoad, a leading management system, to your team’s specific needs, saving time spent going through unnecessary features or dealing with messy workarounds.
Make Informed Decisions To Increase Savings
CaseLoad’s built-in real-time reporting and data dashboards allow partners and managers to understand how time is spent, which cases are profitable, and where bottlenecks arise. This visibility enables firms to make more informed business decisions, such as reallocating resources, changing charging procedures, or identifying failing areas.
Is Your Legal Practice Ready to Start Saving?
At Denovo, we not only offer software; we also assist law firms in changing the way they work. Whether you want to cut down on administrative expenses, get rid of paper files, increase compliance, or outsource your financials, we have a solution that will meet your needs.
Call us today at 0141 331 5290 to book a free demo of our CaseLoad software.
