What is a legal cashier and do you need to have one?

Handling client funds is an inevitable part of your practice, but also something which carries significant responsibility.

This comes in addition to your statutory payroll, tax and accounting requirements. Together, these responsibilities can create a significant compliance burden for legal firms.

You may be able to tackle this challenge with the help of a legal cashier and support from an expert accountancy firm.

What is a legal cashier?

A legal cashier is someone within your practice who manages your finances, specifically ensuring that your firm meets the requirements set out by regulations which govern the legal sector.

While responsibilities of a legal cashier vary from practice to practice, they typically include:

• Handling client funds and managing client accounts
• Ensuring compliance with the Solicitors Regulation Authority (SRA) rules on client money
• Processing financial transactions such as payments and receipts
• Preparing financial reports and statements
• Managing payroll and VAT returns
• Liaising with accountants, auditors, and the firm’s management

For top-tier compliance and more complex requirements, this is typically done in collaboration with a specialist accountancy firm to provide additional advice.

Do you need one?

You are not legally required to have a legal cashier under UK law.

However, managing client funds and maintaining financial records in compliance with SRA regulations is crucial.

Many firms choose to employ a legal cashier because they provide a specialised understanding of the financial requirements and responsibilities specific to legal practices.

For small and mid-sized firms, however, a dedicated legal cashier may not be beneficial. You may wish to outsource this function or seek support for your existing in-house financial team.

For help managing your firm’s finances and staying compliant, contact our specialist accountancy team today.