There are many reasons that a firm may look to Outsource its Legal Cashiering. These include:
By outsourcing, firms can focus on core functions such as fee earning and also have access to on demand support which scales up or down with business needs.
Firstly, let’s look at how much it costs to employ an in-house Legal Cashier?
Most firms benchmark and budget based on an annual salary alone. But the true cost of employing a Legal Cashier in-house is vastly more and can add a third to the cost of the annual salary.
According to the 2017 ILFM/Balance Recruitment Salary, the UK average salary for a sole legal cashier stood at £28,500.
But what other costs need to be considered when calculating the actual cost for employing an in-house Legal Cashier?
Typically if recruiting via a recruitment agency a 15% fee will be charged of the annual salary of the Legal Cashier. Based on the UK average, this equates to £4,275. There will additionally be costs for induction, training and on-boarding materials.
Based on the UK average salary, the monthly salary equates to £2,375, with 9.7% Employer National Insurance of £230.38 and Auto Enrolment contributions currently at 3% of £71.25. Typically, private medical insurance, group illness cover or health benefits and insurances are in the region of £125 per month. This totals £2,801.63 per month.
Typically license costs for HR software, Microsoft Office and other general subscriptions will amount to £35 a month.
Employees amass numerous expenses per head including the cost of refreshments, training and CPD, compliance, staff events and professional subscriptions. This over the course of a year can easily reach £720 annually or £60 per month.
In terms of overheads, Instant Offices estimate the average desk per person to cost between £200 and £400 per month outside London, averaging £300 per month.
A 5% of salary cost apportionment should also be taken into account in terms of IT, HR or Supervisory support costs. Based on our UK average salary, this costs £118.75 per month.
Totalling up the monthly additional costs to the Legal Cashier salary of £2,375 (£28,500 a year), our monthly cost is £3,315.38 (£39,784.56 per year). Plus there was the recruitment fee of £4,275…
Is that Legal Cashier fully utilised during every hour of the working day? Or is there lost time that is being paid for and not used?
If outsourcing the Legal Cashiering function, there is a clear and immediate cost-saving available in comparison to employing an in-house Legal Cashier. On average, firms that utilise Outsourced Legal Cashiering services can save 40-50% in comparison to in-house staff.
It also enables legal practices to only pay for time incurred and utilised in addition to having sickness cover and holiday cover. It also saves on additional employment, training and overhead costs.
The hidden costs of in-house staff who are not fully utilised, quickly add up. By outsourcing, we will agree a fixed fee, transactional fee or hourly rate based on the amount of work required. You will not be paying for time not utilised and immediately begin to reap the cost savings.
By utilising an Outsourced Legal Cashiering service, you are able to “buy in” services at busy times and scale back support when your practice is quiet.
Most businesses have peaks and troughs and law firms are no exception. By using outsourced support, you are only paying for the time that you use or the work that is undertaken on your behalf. This ensures that during quiet periods, you are not paying for idle time which is not being utilised.
It also ensures that in busy periods, you have access to support and are not left adrift. Outsourcing means that you have access to a pool of resources rather than a single Legal Cashier.
This also means that as your business grows, we are also able to support that growth by dedicating more time or resource to your practice without the headache of trying to arrange agency staff or undertake recruitment, which can be expensive.
Taking up an Outsourced Legal Cashier service gives you access to more than just a named Legal Cashier – you again an entire team.
We provide our clients with access to a dedicated, named, Legal Cashier in addition to a backup Legal Cashier and a Supervisor. This ensures there is always somebody on hand to assist if your Legal Cashier is not available.
Having a backup cashiering team also means that when your Legal Cashier is on holiday or sick, you have cover from another named resource, ensuring your business can continue without interruption.
As part of your Business Continuity Plan, outsourced legal cashiering ensures that your Accounts Department can continue to operate in the event that something happens to your business. Working remotely, offsite, also provides Business Continuity cover in the event of a disaster at your premises.
Ascentant are experts at compliance! We are here to keep your business compliant with the Solicitors Accounts Rules and HMRC rules for VAT, Payroll and other taxes.
Enjoy peace of mind, knowing that your Accounts are in good hands. Our staff are fully trained, qualified and supervised to assist your practice with its day to day needs.
You benefit from a dedicated team to work with, providing access to our highly experienced Legal Cashiers, including holiday and sick cover.
You don’t need to worry about staff leaving and replacing them through expensive recruitment agencies.
Rest assured, your data is protected and sure. Ascentant holds a Cyber Essentials accreditation and provides a secure portal for all file transfers.
Ascentant is based in Derby, with additional offices in Nottingham and London. We are able to provide agile proactive solutions to support your business throughout the South-East and Midlands.
Whether you’re a sole trader, small or large business, or just looking for a Legal Bookkeeper contact us today to see how we can help you.
Call us on: 01332 981920. Email us: firstname.lastname@example.org