Financial training and health checks
Education and training within law firms should not be about "sheep dipping". In particular, if financial education and training are to be of value to a law firm, then they need to be tailored to and aligned with the needs of the firm so that it can achieve its goals.
The financial training we provide covers:
- bespoke courses to meet the needs of law firms at all levels – for partners, other fee earners and management
- financial mentoring of those in management roles
- building profitability
- generating stronger cash flow
- improving the recording of billable hours
- pricing for profit
Financial Stability Health Checks
Ensuring that your law firm is financially stable has never been more important:
- It is now a compliance requirement to maintain systems and controls for monitoring the financial stability of your firm
- Law firm failures are costly to the SRA and the profession as a whole
- The SRA is actively requesting and recording data on law firm finances and has issued financial stability indicators; good and bad behaviours
- If the SRA ask you to demonstrate your systems and controls, can you?
Our one day Financial Stability Healthcheck will:
- Review your current financial management, recording and reporting functions
- Provide a report on any gaps between the requirements and your current practice
- Suggest a framework for future reporting, not only to ensure compliance but to enable you to maximise your profits and cashflow for commercial business reasons - allowing you to run your practice as a business
- Advance financial information requests
- Visit to your office by Andy Poole, Legal Sector Director at Armstrong Watson and Peter Scott, former managing partner of Eversheds London and European offices
- Report issued with action plan
- Fixed fee £2,495 plus disbursements and VAT
- Ensure regulatory compliance
- Measure what matters to improve your business in these challenging times
- Place your firm on a more financially stable position
- Know what is happening in your business
- Know what will happen in your business
- Make decisions based on sound knowledge
- Take effective action
Profitable firms with good cash flow are well managed with excellent management information - which comes first and why?
“What is excellent management information”
“Why do you record and report on the things you do?”
“Should you simplify your reporting to concentrate on key issues that are easy to record, report and understand?”
“What are the key issues you should report on?”
Profitability Health Check
The focus of the Profitability Health Check will be to identify in particular -
- areas of revenue under-generation which can be improved by taking certain measures to improve higher revenue, and as a consequence, higher profitability, without having to increase the cost base, obtain more clients or work or ask partners and staff to work any harder;
- areas of the firm, which although appearing to generate sufficient 'top line revenue', are in reality failing to contribute the required 'net profit per partner' which the firm is seeking from every part of the practice;
- areas of the firm where immediate savings should and could be made, by carrying out a zero-based budgeting analysis.
After the initial consultation, the client will receive a brief report setting out a summary of those areas where it is considered improved profitability can be achieved.
Cash flow Health Check
The aim of the Cash flow Health Check will be to focus on the critical steps in the work / billing / collection cycle with a view to generating substantially more cash for a firm. Further to receiving our report summarizing the diagnosis of slow cash generation, if a client wishes to take matters forward, solutions designed to introduce certain necessary disciplines and procedures into the work / billing / collection cycle can be formulated and in conjunction with management, can be implemented. This will include a review of banking and funding issues and an assessment of liquidity risks and opportunities.
If you would like to arrange for either or both Health Checks to be undertaken for your firm or would like further information, then please do not hesitate to contact us.