The pressures on the accounts department in a law firm is immense. Anyone working in finance and law gets it! The SRA have made the Accounts Rules less stressful, however the knowledge anyone, from legal cashier > bookkeeper > finance manager > COFA and practice manager has to know is why you are all professionals in your own right.
Why do the ILFM like to train and help qualify legal finance and management professionals?
- To empower you in the knowledge of what’s needed in a heavily regulated profession;
- To give you the career path you deserve; and
- To keep consumers safe.
Empowering legal cashiers in the compliance knowledge
Often entry-level legal cashiers enter the industry without any specific knowledge. For some who are leaving school and college, they may not have any qualifications - leading to panic and uncertainty about their future. A legal cashier position can be a great solution for those who are comfortable with numbers and want an office-based role with career progression.
Those in that type of situation must be aware of, and understand, their role in compliance. The best way you can support them in doing this is through qualifications. The ILFM's Diploma Level - ILFM(Dip) provides a structure through which your legal cashier can gain a thorough understanding of their role, from daily processes through to trial balance level. Helping them become empowered and confident in their role, so they're ready and able to take responsibility for compliance within your firm.
How Legal Cashiers can gain qualifications to further their careers
Qualifications not only further someone's knowledge and understanding of their role, but they can also set them up for progression within their careers. With so many opportunities in the legal sector, qualifications empower someone to take ownership of their career and take a step towards that. It might be that your legal cashier is harbouring an ambition to be a legal practice manager. Overseeing the operational side of a firm means an even more detailed understanding of compliance. That's where qualifications, such as the ILFM's Diploma Level - ILFM(Dip) or even the ILFM Associate Level (AILFM) come into their own. Both are centred around developing an individual's knowledge, experience and ability to work to the highest standards and that's central to a legal practice manager's role.
For those legal cashiers who have qualifications or are more settled in their roles, continued professional development (CPD) can still be a valuable asset. Regulations change all the time, so staying up-to-date is key to a successful legal cashier and a happy law firm! The ILFM offers a range of training across areas such as Legal Finance, VAT, Bookkeeping and more to help keep knowledge fresh.
Why consumers and clients must be kept safe
We've talked about why compliance and qualifications are useful for a legal cashier. But why is a secure knowledge of compliance essential for your clients and consumers?
You want your clients and consumers to have complete trust in your firm, particularly when money is involved. Often solicitors are handling clients' money in relation to major life events e.g. buying a house, setting up a business, divorce settlements. The impact on clients if money is lost or delayed can be significant and legal cashiers play a big part in the smooth running of these transactions.
Over the past year, we've seen the number of people working from home increase, which means more vigilance around anti-money laundering. In January 2021 the Law Society identified the need for Anti-Money Laundering training within law firms as key:
“The Legal Sector Affinity Group (LSAG) has reviewed and redrafted the anti-money laundering (AML) guidance for the legal sector following the implementation of the EU’s 5th Money Laundering Directive.
The guidance is designed to help legal professionals and firms comply with the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (as amended).”
Societal changes like working from home, alongside further legislation such as GDPR have really highlighted the need for a legal cashier to undertake qualifications and ongoing training. Furthering their understanding, improving their confidence and empowering their decision making.
Understanding and upholding compliance is as much about protecting the clients as it is about protecting your firm. That's why it's essential that your legal cashier not only understands compliance but has the strongest grip possible on it.
To sum up why your legal cashier might need training and qualifying
In the words of our friends at Quill,
“A legal cashier has the vital responsibility of handling all the finances of a solicitor’s practice or law firm.
All law firms require a legal cashiering function in order to comply with complicated accounting regulations such as the SRA Accounts Rules.”
It just makes business sense to secure your firm and the relationships you have with your clients.
If you’d like to talk about firmwide ILFM membership, get in touch with our team to work out a plan that’s flexible for you, or just come straight through to me: tim@ilfm.org.uk.
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Is your legal cashier secure in their knowledge of compliance? The ILFM is the leading legal finance and management organisation focusing on training and qualifying bookkeepers and anyone dealing with legal finances. Learn more here…..
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