Should a law firm outsource its legal cashiering?

It depends on the size of the firm and who currently does the work. Outsourcing gives you a specialist doing the postings and reconciliations to the relevant SRA Accounts Rules or CLC Accounts Code (England and Wales), cover when people are away, and a second pair of eyes on the client account. What it never does is move the firm's own responsibility: the COFA, HOFA, managers and authorised persons keep their duties, and the firm keeps oversight of the work.

These answers provide general information, not advice tailored to your circumstances. Rules can change and exceptions may apply — speak to the CASS team before making a tax, accounting or financial decision.

Why a law firm might outsource it

Legal cashiering is specialist, deadline-driven work and mistakes can create compliance as well as operational problems. Outsourcing can give a firm experienced support without relying on one internal cashier.

They need to understand legal accounts

The service needs to understand the SRA Accounts Rules, client money, office money, transfers, residual balances and reconciliation requirements. General bookkeeping experience on its own isn't enough.

The firm still keeps responsibility

Outsourcing the processing does not outsource the firm's regulatory responsibility. The practice and its managers retain their own responsibilities, as do the COFA in an SRA-regulated firm and the HOFA in a CLC-regulated ABS — appropriate oversight, approvals and evidence stay with the firm.

That is a reason to outsource carefully, not a reason not to. A provider that reconciles to the required timetable, evidences the work and escalates problems makes the responsible people's job easier. One that goes quiet makes it considerably harder.

What I would compare

Look at experience, cover, security, response times, reconciliation processes and how the provider works with your practice-management system. Price matters, but reliability and compliance discipline matter more.