Written by:
Grant Yuill
Head of Marketing & Customer Engagement
Denovo’s Outsourced Cashroom Services is a crucial but sometimes overlooked service we provide. This is a core offering that has been making a significant impact to law firms of all sizes for over 12 years. To provide valuable insights, our Head of Marketing, Grant Yuill, spoke to our Head Cashier, Jacqui Sim.
What is Denovo’s Cashroom Service?
Grant: Let’s start with the basics – what exactly is Denovo’s Cashroom Service, and who makes up the team?
Jacqui: We are a team of SOLAS-qualified legal cashiers who support law firms with their day-to-day financial administration. SOLAS is the recognised qualification for legal cashiers in Scotland, and we take great care to ensure our team is fully trained and up to date with the latest regulations.
We currently have two team members going through their SOLAS qualifications, as finding experienced, qualified cashiers can be challenging. Many cashiers are incredibly loyal to their firms, so we focus on hiring individuals with strong attention to detail, a solid work ethic, and a team-oriented mindset. We then train them internally and support them through their SOLAS certification to ensure they have the best qualifications to serve our clients.
How Does Outsourcing Cashroom Services Work?
Grant: Traditionally, many law firms have viewed the Cashroom as the heart of their office operations. How does outsourcing this function work in practice?
Jacqui: In the past, the idea of a Cashroom operating outside the physical office was difficult for some to imagine. However, the shift towards hybrid and remote working has made outsourcing much more widely accepted.
With the right systems in place, like Denovo’s cloud-based practice management software, the Cashroom function can be managed just as effectively from anywhere. Our service operates seamlessly via email, phone, and electronic systems. Clients upload their debits and credits through Denovo’s secure platform, and our team processes everything remotely.
Essentially, we function as an extension of the firm’s in-house team. Each client has a dedicated cashier who works closely with them, ensuring compliance, managing daily transactions, and assisting with financial oversight. We also provide guidance on streamlining financial processes to enhance efficiency and compliance.
The Main Services Denovo’s Cashroom Provides
Grant: What specific services does your team offer to law firms?
Jacqui: Our services are tailored to each firm’s needs, whether they require full Cashroom support or just assistance with specific tasks. Some of the key services we provide include:
- Processing client and firm transactions
- Preparing day books and daily surplus statements
- Managing balance queries
- Conducting daily bank reconciliations for all accounts
- Handling month-end and year-end tasks
- Reconciling invested funds
- Preparing VAT returns and account certificates
- Liaising with accountants and auditors
- Managing payroll processing
- Assisting with Law Society compliance
Some firms engage us for comprehensive support, while others use our services on a more ad-hoc basis, such as for holiday cover or to support in-house cashiers during peak periods. Our flexibility means firms can get the exact level of assistance they need.
Addressing Concerns About Outsourcing
Grant: Some law firms may still feel apprehensive about outsourcing a function as critical as their Cashroom. How do you address those concerns?
Jacqui: That’s a completely understandable concern, but our approach ensures that firms never feel like they’re handing over control to an external third party. Our team works closely with firms on a daily basis, and we build strong relationships with our clients. There’s regular phone and email communication, so our clients always feel connected to their dedicated cashier.
Firms that have switched to our service often find that it improves efficiency, reduces internal stress, and ensures compliance with Law Society regulations without the burden of managing everything in-house.
The Cost-Effectiveness of Outsourcing
Grant: From a financial perspective, how does outsourcing compare to hiring an in-house cashier?
Jacqui: In many cases, outsourcing can be more cost-effective than hiring a full-time, in-house cashier. Recruiting and retaining experienced legal cashiers can be challenging, and salaries for qualified professionals are increasing.
With outsourcing, firms only pay for the services they need. Some firms require full-time support, while others only need assistance at certain times, such as during audits or month-end processes. By outsourcing, firms gain access to a highly skilled team without the overhead costs of salaries, training, and recruitment.
Preparing for a Law Society Inspection
Grant: Why is preparation for a Law Society inspection so important for law firms?
Jacqui: Law Society inspections are essential to ensuring that firms comply with regulatory and ethical standards. Being well-prepared not only helps firms pass the inspection smoothly but also enhances operational efficiency and reduces the risk of compliance breaches.
Grant: What are some key areas that firms should focus on when preparing for an inspection?
Jacqui: There are several critical areas. Firstly, financial compliance is a major one – firms need to ensure that their accounting records are up to date, client funds are properly handled, and reconciliations are completed regularly. Another key area is AML (Anti-Money Laundering) compliance. Firms must have robust policies in place, conduct risk assessments, and ensure proper client due diligence.
Grant: Let’s talk about file management. What does good practice look like in this area?
Jacqui: File management is crucial. Firms should maintain well-organised case files, with clear documentation of client communications, key decisions, and risk assessments. Digital file management systems, like our CaseLoad case management software, can significantly help in maintaining accurate records. Also, demonstrating proper supervision and case progress tracking is essential.
Grant: You mentioned AML compliance earlier. What common mistakes do firms make in this area?
Jacqui: One of the biggest issues is incomplete or outdated risk assessments. Firms sometimes rely on generic templates instead of tailoring assessments to each client and transaction. Another mistake is inadequate ongoing monitoring – firms must ensure that they update client records and risk assessments throughout the engagement, not just at onboarding.
Grant: What role does technology play in helping firms stay compliant?
Jacqui: Technology can be a real game-changer. Case management systems can automate compliance checks, track deadlines, and ensure that all necessary documentation is stored securely. Some platforms, Like CaseLoad, also fully integrate AML checks and financial reporting, making it easier for firms to meet regulatory requirements.
Grant: If a firm finds gaps in its compliance efforts, what steps should they take to address them before an inspection?
Jacqui: The first step is to conduct an internal audit to identify areas that need improvement. Firms should then update policies, provide staff training, and implement corrective measures. If necessary, seeking external advice can also be beneficial to ensure full compliance.
Grant: Do you have any top tips for firms to make the inspection process as smooth as possible?
Jacqui: Absolutely. First, always keep compliance a continuous priority rather than a last-minute effort. Second, maintain thorough and well-organised records. Third, use technology to streamline processes and minimise errors. Lastly, prepare your team by running internal mock inspections to ensure everyone understands their role in compliance.
Final Thoughts
Grant: What would you say to law firms considering outsourcing their Cashroom function?
Jacqui: I’d encourage them to have a conversation with us. Every firm is different, and we take the time to understand their specific needs. Whether they need full outsourcing or just occasional support, our team is here to help make their financial processes more efficient, compliant, and stress-free.
Grant: Jacqui, thanks so much for your time and for sharing these valuable insights.
Jacqui: My pleasure! I hope this helps firms understand the benefits of outsourcing their Cashiering.
If you’re interested in learning more about how our Outsourced Cashroom Services can support your firm, feel free to reach out to Jacqui directly at jacquis@denovobi.com with any questions. You can also download our brochure for a detailed overview of how we can assist you and your team.
