Home / Courses / Courses for legal apprentices & paralegals / Law firm finances

 

Outcomes

As a result of attending the session you will:

• understand how law firms operate as commercial entities
• review a simple set of law firm accounts
• understand financial data and key performance indicators and how your actions affect profit and cash flow
• understand why your bosses care about chargeable time, write-offs and getting the firm’s bills out on time
• develop your understanding of the legal sector
• contribute more effectively to the day-to-day operations of the firm

 

Content

Planning

• Why do law firms go bust?
• The challenges facing law firms
• Why we have budgets

Law firm finances

• Where do law firms get their money?
• Reporting financial performance – profit and loss and balance sheet
• Key performance indicators and benchmarking

How do law firms generate profits?

• The profit formula
• Gearing
• Time recording
• How much to charge
• Recovery
• Margin

‘Cash is king’ – the importance of managing cash flow

• Cash flow forecasting
• Lock-up explored
• Managing WIP and debtors

The human element

• Motivation
• Performance management
• Leadership styles

Business development

• Winning new business
• Retention – the importance of delivering excellent service to clients