How much does it cost 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 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?
On-boarding
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.
Salary costs
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.
Licenses and Software
Typically, a Legal Cashier will require access to the Practice Management System starting at £57 for a single license, in addition to Office365 around £8 per month, a user license for HR software at £5 per month.
Expenses
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 or £60 per month.
Refreshments – £10 per month/ £120 per year
Training/CPD – £250 per year
Subscriptions & memberships – £150 per year
Staff events – £200 Per year.
Overheads
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.
Summary
Totaling up the monthly additional costs to the Legal Cashier salary of £2,375 (£28,500 a year), our monthly cost is £3,350.38 (£40,204.50 per year). That equates to an hourly rate of £22.09.
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, it 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.
Ascentant Accountancy provide Outsourced Legal Cashiering services and our Legal Cashiers can cover short term projects, holiday cover or operate your Legal Cashiering function. For more information on how Ascentant can help, contact 01332 981920 or email info@ascentant.co.uk for further information, our brochure and to obtain a quotation.
Ascentant Accountancy are Accountant’s based in Derby who specialise in working with Small Businesses across the Country – Get in touch on 01332 981920 or info@ascentant.co.uk to discuss your needs.
We can be found at Suite 5 Keynes House, Alfreton Road, Derby, DE21 4AS.
