Financial Facts Tell The Story

Lots of solicitors are being made redundant.

And many law firms are closing.

And it comes as a surprise to many people
that work in these firms.

But it should not be a surprise.

Because all staff should know exactly
how their law firm is performing. And if
they don't they must find out.

As you live with the consequences
of decisions it’s essential that you
help make them.


And if you work for a law firm you must know
the basic financial facts if you are to have
any influence on the business.

Management that informs staff, educates
them and allows them to influence their
own futures is good management.

If you are the Parnter in charge, provide your staff
with the answers to questions.

As staff, ask these questions. (Cut and paste).

• Do we have an annual business plan?
• Can we have a copy?
• How many clients do we have this year?
• How does it compare to the last 3 years?
• How much income from fees are we forecasting this year?
  
• How does this compare to last year?
• How much income in total is forecast for this year?
• Is there a monthly accounts document that can be shared with a snapshot of how we are doing each month?
• What will our profit before tax be for the year?
• How are any profits this year going to be used?
• How have we been affected by the recession?
• What areas are expected to expand and contract over the next two years?
• What plans are in place to allow this to happen effectively?
• Who is responsible for cost control?
• What areas have been identified where we can save money?
• How are salary increases worked out?
• What are our forecasted income, costs and pre-tax profit for the 2010/11?
• What is our average income per client in each department that comes to our law firm? (number of years x £ per year)
• What are the main threats to our profitability?
• What are the main opportunities for growing our profitability?

This is the start of open-management.