As law firms and the legal sector itself experience an unprecedented period of growth, financial management has become an increasingly pertinent issue....

Effective financial management that can facilitate sustained performance and competitive edge in an overcrowded marketplace requires not only the appointment of a highly capable finance director, but broader changes in behaviour and working processes among a firm’s lawyers, changes that touch on ingrained traditions, such as the chargeable/non-chargeable hour.

In this competitive environment, firms may recognise the importance of effective financial management, but largely leave it in the hands of the accountants. Financial Management for Law Firms, the fifth report in Managing Partner’s Best-Practice series, goes beyond accountancy to focus on the relationship between financial management, the lawyer and the lawyer’s business.

This highly practical report covers vital subjects including:

• Managing the balance sheet – assessing your firm’s financial and intellectual capital;
• Use of rolling instead of static budgets in a firm’s financial planning;
• Successful performance measurement at various levels of the firm;
• Matter profitability and other key performance indicators.

Authored by Michael Roch, Friedrich Blase and Nick Jarrett-Kerr, an international group of highly experienced management consultants, this vital new best-practice report will provide essential insights, from a broad range of perspectives, into a crucial management space.