Legal Cashiers - bookkeeping for law firms

In a solicitor's practice the accounting and finance functions are paramount in keeping the law firm compliant and regulated, whilst keeping cashflow and double entry bookkeeping managed efficiently and up to date.

In England and Wales the Institute of Legal Finance and Management (ILFM) is the leading body for education and membership support for this niche profession.

A legal cashier should, ideally, be qualified through the ILFM's qualifications. Law firms who use non legal experienced bookkeepers might fall foul of the solicitors accounts rules, by no fault of their own. However, the legal industry is well aware of the Solicitors Regulation Authority (SRA) and its ever growing powers.

What does a Legal Cashier do?

Legal cashiers and those in a similar role within a firm of solicitors, have a responsibility within the company that goes far beyond balancing the books and data entry. Their work is audited by the reporting accountant each year, together with management reports showing that client accounts are protected and there are no possible breaches.

What does an experienced legal cashier look like?

The ILFM is honoured to have so many new cashiers studying with us who are committed to providing the legal industry with their knowledge to support the finances and assisting the business as a whole.

Our Diploma Qualifications suit those totally new to legal finance and cashiering, or if they have worked in legal finance for a while, but want to understand more about the role of advance their career. There are two parts to the Diploma:

• Bookkeeping for Legal Finance Professionals; and

• Legal Finance Compliance & Accounts Rules.

Bookkeepers are so helpful to so many firms in different industries, however, legal bookkeeping requires a deeper understanding into accounts rules; understanding the difference between the office and client accounts, because clients and their monies must be protected at all times.

Lawyers are highly regulated and the SRA is there to protect us all, as consumers of law. All of us working in law, must comply with the regulations and legal cashiers will be taught this in our qualifications as well as our on-going training sessions.

What skills are desirable as a legal cashier in a law firm?

The duties of a legal cashier can vary from firm to firm, however legal finance professionals have an essential job in managing the finances within a legal practice.

The designation "legal cashier" is quite an old fashioned term, stemming from the days when we had cash in the offices (and not just petty). There are many other terminologies for this professional (and they are professionals) including accounts payable officer, e-billing manager, accounts payable manager.

The fundamental skills of a legal cashier include:

• Double entry bookkeeping

• Client and office accounts knowledge and how to unpick the data if necessary

• SRA accounts rules understanding

• Banking

• Legal accounts software

• Annual audits and inspections

• VAT returns

Legal Cashiers will be responsible for some of the following duties:

• Processing account transactions, both inbound and outbound payments

• Performing bank reconciliations to balance the bank accounts and books

• Producing daily, weekly and monthly reports on the financial status of the law firm

• Checking for errors and reporting any account breaches (must adhere to the SRA Accounts Rules)

• Invoicing clients for work done and chasing overdue monies (credit control)

• Submitting quarterly and year-end VAT returns

• Maintaining separate client and office ledgers

• Ensuring compliance with relevant rules and regulations

• Liaising with compliance officers, clients, auditors, regulators, suppliers and banks

As you can see, a legal cashier role, whether full time, permanent in the office or working remote is a demanding career which the ILFM are here to support.

Are you a law firm owner who wants to support your legal finance staff?

As a law firm owner you under enormous pressure to ensure your clients' work is offers technically sound advice, whilst managing administration and employment. Small law firms are up against an exhaustive list of stresses whilst offering an excellent service.

Legal cashier jobs are continuously being advertised, however the demand isn't presently met by the supply. One way the ILFM suggests small law firm owners go about ensuring their finances and books are compliant if they are struggling to find the right candidate to fit is to bring a bookkeeper on board or indeed a school or college leaver that has an eye for number and attention to detail, and invest in that person. By paying for that person's ILFM qualifications into legal finance the law firm can offer experience whilst moulding that new professional into the workings of the firm. The investment for the ILFM's Bookkeeping for Legal Finance Professionals is under £500.

Larger firms will have a bigger budget to invest in their legal finance teams and many already work with us to train and qualify their employees with SRA accounts rules updates, legal finance fundamentals, VAT and Disbursement training. 

If you or your HR manager would like to enquire about how the ILFM can support your law firm with team skills with precision detail, please contact us HERE.